Although the government has taken some steps to address the tax evasion problem, the head of the Financial and Economic Crime Unit (SDOE) Stelios Stasinopoulos revealed that the problem has become worse. Mr. Stasinopoulos addressed the Parliamentary Committee of Institutions and Transparency on Tuesday and explained that the first 266 audits of people on the infamous “Lagarde List” will be completed by the end of the month.

These 266 cases – which include many artists, entertainers, lawyers, farmers and businesses – are suspected of hiding about 300 million euros from the tax authorities. Furthermore, during the first four years of the crisis (2008-2011), it was estimated that 54,000 Greeks transferred about 54 billion euros to foreign banks. About 20 billion euros cannot be justified.

Perhaps more revealing that than the data on fraud against tax services is the admission that SDOE simply does not have the staff and resources to complete the necessary checks and audits efficiently and promptly enough.

Extent of tax evasion and fraud

  • 52 farmers appear to have fraudulently collects 52 million euros worth of tax returns and subsidies for products never produced or sold
  • 18 lawyers appear to have hidden bank accounts worth 23 million euros
  • 2 artists appear to have hidden 4.2 million euros worth of income from tax authority
  • 7 taxpayers who were obliged to provide detailed information on their assets withheld 8 million euros worth of income
  • A number of business in the service industry withheld 29 million euros of income

Despite being understaffed, SDOE is continuing its audits, among which there are

  • 150 taxpayers who appear to have over 1 million euros in foreign accounts, while claiming to have no income in Greece
  • 180 taxpayers who acquired real estate abroad and are suspected of tax evasion and money laundering
  • 380 taxpayers who have registered their yachts in the Dutch ship register
  • 54,000 local government elected officials, including many mayors, who appear to have evaded taxes and laundered money. One mayor in Peloponnesus had an account with 18 million euros that cannot be justified by his income and assets
  • Municipal businesses and suppliers that are suspected of being involved in cases of bribery and fraud