Reichenbach’s call for tax collectors from 12 countries

Horst Reichenbach is organizing a landing in Greece, not only of 160 German tax collectors but also of many others from 12 EU member-states, to declare war on large and high-profile tax evasion.

In the past 3 months experts from Belgium and France, specializing in debt collection and tax audits, have arrived in Greece, These meetings that are funded by the EU have the opportunity to show to experts from member-states how to determine ways to improve mechanisms for immediate recovery, improve strategic planning and fiscal control and deal with the taxation of taxpayers of great wealth and large enterprises.

In addition, experts from Sweden and the Netherlands will make visits to improve debt recovery, while experts from Denmark and France will provide advice on the taxation of large taxpayers and tax audit strategies. Experts from Spain will provide advice on the taxation of major taxpayers.
 
The German Finance ministry has already managed to set up a tax services team of 160 people, who are interested in participating voluntarily in missions in Greece. The response by member-states for assistance to Greece's problems is great as well, including 12 member countries that are willing to help (Austria, Belgium, Denmark, Germany, Bulgaria, Italy, France, Spain etc.).

Deposits and property abroad

Furthermore, there will be a conclusion of cooperation agreements with other member-states that would deal with the properties belonging to Greek nationals in other countries of the EU, which will also provide advice to the Greek authorities on other methods to raise tax revenue that could arise from the savings of Greek nationals abroad.
 
“The big fish”
 
There will also be indicators of performance measurement of the tax collectors in the following areas:

-          collection of tax debts

-          tax inspections for taxpayers of great wealth

-          audits of large taxpayers

-          battle against corruption in tax administration
 
Early on in 2011, collectible overdue tax debts made up 8 of the 42 billion euros owed by individuals to the state. The initial objective was to collect 400 million but the collection amounted to 946 million euros.
 
Regarding the indicators of performance measuring in the area of tax audits, tax departments have been able to conduct 400 fiscal audits in 2011 on taxpayers of great wealth, and receive 50% of debt payments.
 
In contrast, the targets set in relation to the taxation of large businesses had not been reached in late 2011. They were only achieved as a requirement for the new loan and were finally concluded before February 29.
 
With the technical help of the EU:
 
-          greater effort is made to take advantage of the black money combating mechanisms

-          the role of the General Accounting Office will be strengthened to ensure proper management of public finances. The IMF and EU will contribute to consolidating the progress of controlling costs, as well as the ability of financial management, which obviously the Greek state does not have

-          officials are also drafting the independence of tax administration from the political system through the concession of control from cabinet to the administrative level in terms of the main business activities and decisions related to the management of staff

-          they are also promoting modern methods of work (e.g., risk analysis, new techniques of tax audits, new tax collection methods) in a streamlined and more independent tax administration that will emerge in this way
 
Reichenbach’s group calls for greater progress in the category of large taxpayers. There is a gap between the current practice in Greece and international practices in priority areas such as:
 
- debt collection

- tax audits

- major taxpayers

- taxpayers of large wealth

- solving tax differences
 
Accountants in ministries
 
Regarding public financial management, the aim is to establish uniform financial services in each ministry, based on a draft by experts from Austria, France and Germany.
 
Saving 6 billion euros from insurance funds
 
Social security funds (OPAD, IKA, TAFTEKO, OAED) are in the sector of expenses. The cuts apply only to the operational expenses of those funds and not their pensions. The aim is to find 6 billion euros for the settlement of arrears of the past. Based on reports of the IMF and experts from France and Austria, officials are trying to ensure that there won’t be any new arrears in 2012.