Thessaloniki in a bind over taxes

Thessaloniki Municipality is unable to pay its suppliers and is in danger of not being able to pay wages because the city’s tax office has seized half of the money in its bank account over unpaid taxes.

Since being elected in 2010, Mayor Yiannis Boutaris has attempted to put the city’s finances back on track after years of embezzlement that led to his predecessor, Vassilis Papageorgopoulos, being jailed. Officials were called in for the first audit of the city’s tax records since 1993, which revealed debts of 1.2 million euros.

The decision to confiscate the municipality’s money on August 9, pending settlement, prompted a complaint from Boutaris, who called for the city’s real estate to be used as guarantees until a payment plan is agreed.