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Lower corporate tax rate, stiffer sanctions envisioned in draft bill

Δημοσίευση 26 Ιανουαρίου 2011, 12:10 / Ανανεώθηκε 27 Ιουνίου 2013, 14:55
Lower corporate tax rate, stiffer sanctions envisioned in draft bill
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The government on Tuesday unveiled a new tax draft bill foreseeing lower corporate tax rates, aimed at reviving currently frozen economic growth and stiffer sanctions against tax evasion.

The government on Tuesday unveiled a new tax draft bill foreseeing lower corporate tax rates, aimed at reviving currently frozen economic growth and stiffer sanctions against tax evasion.

The draft bill, which was presented during a Cabinet meeting and was tabled for consultation, envisages a radical reorganisation of all public services, a continuous evaluation of tax bureau inspectors, the introduction of an internal affairs unit, accelerated decision-making in tax cases through the creation of a tax arbitration entity and flexibility in VAT payments.

The bill sets a uniform tax rate on corporate earnings at 20 pct, down from 24 pct, while distributed earnings will be subject to a 25 pct withholding tax, down from a progressive tax rate of up to 40 pct currently. It also envisages a tax increase on stock market transaction gains from 0.15 pct to 0.2 pct.

Under the plan, the finance ministry will introduce a three-year programme aimed at combating tax evasion, which will include specific actions and measurable targets. It will include the introduction of a general attorney for financial crimes and stiffer sanctions against tax evasion, such as jail sentences for outstanding tax debt. It also envisages setting special criteria for inspections on self-employed reporting low incomes, particularly physicians, dentists, veterinarians, lawyers, architects, engineers, accountants and business executives.
Also an electronic receipt card will be introduced to boost transparency in transactions between consumers and enterprises. The new bill will also envisage extending for a period of four years of the right to a discount for an additional 50 pct of spending in R&D for enterprises.