Sweeping tax bill with reductions in fines of up to 80%

A bill that the Finance Ministry will table next week in parliament will include the final arrangements for the fines for not submitting VAT returns, on the capital gains tax and the taxation of farmers.
 
The aim is to close the outstanding issues in tax laws and the way tax obligations of taxpayers and businesses are met, and to correct provisions to more realistic planes for the operation of the market.
 
The bill is expected to establish at lower levels of up to 80% from the initial estimates the fines of 1,000 and 2,500 euros of tax law for non-submission of VAT returns and other taxes.
 
Also, another provision of the bill provides for the possibility of offsetting VAT between private individuals and public sector including its wider bodies. This provision should facilitate transactions of private businesses and the public sector and help the first that encounter major problems of delays in the collection of VAT.
 
The bill will also determine the taxation of capital gains on real estate. This measure was due to be implemented from 1.1.2014 but problems on the determination of cost of property prevented it. Officials also decided to exempt 25 year-old properties or older which is expected to help with the calculation of the tax.
 
Lastly, the bill will also implement an increase for the unseizability of salaries and pensions for amounts up to 1,500 euros, will not allow seizures for debts of less than 500 euros and will include help for farmers.