How the federal government’s successive legislative experiments are burdening freelancers with 1000’s of euros in head tax
In June 2023 the self-employed had voted by 45% ND as a result of it diminished their taxes by lowering the tax fee for revenue as much as 10,000 euros to 9% and since they believed Mitsotakis who campaigned on the promise of “no tax enhance” . A couple of months later, nevertheless, the ND authorities introduced the brand new system of supposedly goal standards, primarily based on which freelancers – no matter what they gather or what they declare in myDATA, e-books, and many others. which had been supposed to resolve the issue of tax evasion – they’re taxed with a minimal presumptive revenue “go well with” that begins at 10,920 euros and goes as much as 50,000 euros. In actual fact, it was decided that the applying of the brand new system can be retroactive to the incomes of 2023.
Self-employed individuals cried out, however their reactions had been overshadowed by the federal government’s marketing campaign of social automation that accused them of arrests – and continues – to be tax evaders, and their reactions subsided when the federal government promised that the presumptions can be rebuttable.
Tales of Halima
Till Might got here and with the submission of the tax declarations, the freelancers found that the claims about combating presumptions had been Halima’s fairy tales. Within the round issued a number of days earlier than the European elections, the AADE stipulated that the situation for contesting the presumption is that they fill out a questionnaire on all revenue and belongings, private and of members of the family, to just accept a retrospective audit over a interval of 5 years and after paying the no matter “go well with” they sew for them, to hope that they are going to be vindicated by the AADE or the executive courts – if, when, sometime… All this turned identified within the days when the ring with the sworn tax officers of Chalkida who had been extorting companies was revealed.
That is how the freelancers within the European elections turned the losers – they voted by solely 28% ND – whereas on June 17, the coordinator of their associations filed an enchantment to the Council of State for the annulment of Regulation 5073/2023 however primarily the choice of the AADE for a five-year retrospective management .
That is how we noticed final week Hatzidakis and Mitsotakis arguing that from the minimal variety of declarations contesting the presumption that has been filed (as a result of the AADE prevented them with the draconian provisions) it doesn’t observe that freelancers have a significant issue with presumptive revenue, however and that the federal government will make some modifications when the tax submitting course of is accomplished “offered it’s discovered that there have been gross injustices” and “with out affecting the philosophy of the regulation.”
In actual fact, because it has begun to leak from the Ministry of Finance, the modifications are inevitable as it’s thought-about greater than potential to cancel the AADE resolution on the CoE. There may be even a plan b if the invoice with the minimal presumptive revenue, which gives for the tightening of the belts on digital books, is defeated.
All these paper workout routines ignore the depth of fury that the successive legislative experiments to crack down on tax evasion have provoked and the chaos they’ve delivered to the market. Visiting their accountants today to file a return, 1000’s of self-employed individuals are left speechless after they uncover that they’re burdened with a number of thousand euros in head taxes not as a result of they’re avoiding tax however as a result of the federal government cunningly consists of as revenue for everybody solely what they declare as web revenue from the self-employment, wages and pensions and excludes different sources of revenue, equivalent to rents or household revenue, i.e. the revenue of the partner.
Typical is the case of a 70-year-old sculptor reported by an accountant to Documento who receives a small pension of two,800 euros a 12 months, has a rental revenue of 12,000 euros and makes copies of historical statues. Primarily based on Regulation 5073/2023 as a result of he’s previous, so it’s assumed that he has been practising the occupation for a few years, this sculptor was punished to pay 3,500 extra tax, primarily extra money than his pension, as a result of he was speculated to be evading taxes. There are tens of 1000’s of different circumstances like this one, particularly within the creative, different or authorized professions.
The market is upset
And let’s not focus on, circles of accountants say meaningfully, concerning the chaos that has arisen out there because of the continuously new necessities of the federal government and AADE from companies and professionals, with the latter struggling to fulfill them inside suffocating deadlines beneath the specter of imposing excessive fines, one for the interface of POS with money registers and ERP programs, one for IRIS, one for the brand new FIMA programs in catering companies, leading to a complete coronary heart assault out there that tends to show right into a battle of all in opposition to all and with corporations already sending large out-of-courts to suppliers who’re unable to provide them with the mandatory gear as a way to keep away from a excessive advantageous from AADE themselves.
“When the AADE reaches the purpose of imposing a advantageous and lockout on a big clothes chain like H&M, despite the fact that it had correctly reduce receipts, paid VAT and carried out the whole lot it wanted to do with the suppliers and the interface of the POS with the money registers , merely due to a software program failure, every of us can think about how uncovered every small store and every self-employed one who sees their accountant as soon as 1 / 4 and their technician as soon as a six-month is now uncovered to AADE” mentioned an accountant in Documento. “And it is a matter of whether or not the creation of all this monstrous management mechanism with myDATA and e-books, with the price and inconvenience they entail for companies, does something to fight tax evasion. Or if we assume that they do work, why did additionally they put the capital tax on the deemed revenue as a burden on the freelancers?’ concluded.
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