The Ministry of Finance seeks new ways to convince depositors who have funds abroad to bring them back in Greek banks. After the substantial failure of regulation of the “repatriation” of capital, the ministry officials examine new solutions as full tax and control exemption.
FinMin Evangelos Venizelos said on Monday that Greek economy needs to increase liquidity in the banking system, which suffers from deposit outflow abroad.
The existing arrangement on repatriation of funds, which expires on September 30, allows those who have untaxed funds abroad to “launder” them by paying 8% tax on the amount. The regulation also enables those who pay the tax to decide on bringing the funds in Greece or keep them abroad. Moreover, Greek government would return the 50% of the tax to those who bring the funds in Greece and place them on Greek bonds or purchase a property.
However, this regulation has failed to attract more than €30 million, an amount that is considered a drop in the ocean of €70 billion deposits, which have been transferred abroad.
At a meeting with representatives of productive players, the Minister asked them to submit proposal for a new capital repatriation regulation. There are already suggestion for a full exemption from taxes and control for those who bring their money in Greece. The ministry plans to impose a tax of 10-15% on funds that the authorities would find abroad and are not taxed illegally in Greece.
(source: capital)
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