«Handcuffs» and prison for tax evaders

The new motto at the ministry of Economy is zero tolerance for tax evaders, and for 2011 prison is the destination for those caught red-handed by the newly created tax police.

The plan provides that from March, the serious violations will be dealt with by means of the "in flagrante" process. Such cases will include fake virtual tariffs, non-tax yields of more than 50.000 or 60.000 euros, and the concealment of income over 70.000 euros.

This is mainly aimed at provocative evasions and sectors that declare very low incomes. The proven evaders will be put on express trials in order to pay up or serve time and become examples to others, as demanded by the IMF.

However, some legal issues regarding the "in flagrante" process remain unresolved and must be dealt with by three ministries (Economy, Justice and Citizen). For example, the non-yielding of VAT tax could lead to massive arrests of traders and professionals. It is unclear, however, if it is enough just to deem the delay an «one-time» offense or, instead, if it should be considered «repeated» and preceded by warnings or serial violations, for the "in flagrante" process to commence.

For 2011, the economy staff are aiming at 5bil euros more than the 14bil they wanted for 2010. To combat tax evasion, they are unleashing tax auditors with laptops in the market, who will implement the fines online and on the spot. March will bring a new bill with very heavy fines, arrests and imprisonment of evaders by the tax police!