Her treatment tax evasion it is out of the question, in order for the government, despite the new strict fiscal framework of Brussels, to proceed with four years of tax relief.

As officials of the Ministry of National Economy and Finance explain to APE-MPE, new fiscal rules they focus on the annual growth rate of net (after deducting revenue and expenditure on co-financed projects, as well as one-off one-off expenditure for natural disasters) primary (excluding debt service interest expenditure) expenditure.

For Greece in particular, the growth rate of net primary expenditure is 3.7% for 2025 (about €3.5 billion), 3.6% in 2026, 3.1% in 2027 and 3% in 2028. If the country wishes to spend next year in addition e.g. 1 billion euros from the limit of 3.5 billion euros, then the additional amount should be found: Either from the imposition of new taxes or an increase in the existing ones or from revenues on a permanent basis that will have the same effect. The specific income can be derived from or from its rise GDPor from other sources such as tackling tax evasion. And as a 0.5 unit increase in development revenue implies a 5% increase in GDP, the heavy burden is placed on the disclosure of taxable material and the fight against tax evasion and tax evasion.

And in the second leg, a brilliant field of glory opens. Despite the fact that there are no official calculations on the size of tax evasion, the Bank of Greece estimates, from the comparison of declared incomes and consumer spending, that at least 60 billion euros are in the “grey” zone of the economy. So, with conservative assumptions, we are talking about tax evasion in the amount of 10-12 billion. euro.

Already, as the officials of the ministry report, there are the first tangible results from the disclosure of taxable material. Linking the imputed income of freelancers to the minimum wage is estimated to generate additional income of around 500 million. euros, while from the loss of the allowances they are no longer entitled to an additional 100 million. euro. As stated by the minister Kostis Hatzidakis (so officially the goal has been set to “reveal” at least 2.5 billion euros annually by 2027), the interconnection of cash registers with POS “has contributed to having 10.3% more revenue in the first half of 2024 than VAT in relation to 2023. The remaining 7.3% comes from development and tackling tax evasion”.

Her “arsenal”. AADE is already full for the specific purpose: Installation of POS and their connection with cash registers and Taxis, electronic invoices and shipping slips, income-expenditure mandatory through myDatapre-filled and income tax and VAT returns, real-time checks with the help of Artificial Intelligence, automatic exchange of tax information with European and third countries, opening of bank accounts with automated procedures, cross-references from multiple databases, and full digitization of tax-customs.

Parenthetically, it is noted that Mr. Hatzidakis announced last Friday that the bill which will implement the initiatives announced for 2025 (among other things income tax exemption for closed properties offered for rent, further reduction of insurance contributions by one unit, incentives for mergers and innovation), is expected to be put up for consultation next week.

In essence, curbing tax evasion is a necessary condition for a new round of tax relief. It is enough for the government to convince Brussels (the officials of the ministry believe that this is completely possible) that the measures to deal with tax evasion have a permanent and not an extraordinary positive impact on the budget. “We will tell them”, they report, “that every year I have this permanent and not temporary income, so additional fiscal space and I can now reduce taxes”.