Months after new tax laws passed in Greece about Greeks abroad, the requirements for Greek Australians still remains unclear and confusing.
Consular officials in Australia, the Greek Orthodox Community of Melbourne and Victoria (GOCMV) and even Neos Kosmos has been inundated with calls from concerned Greeks perplexed with what they need to provide Greek authorities.
The law states that all Greeks abroad will need to file a tax return to the Directorate of Financial Services for Greeks Abroad (Διεύθυνση Οικονομικών Υπηρεσιών Εξωτερικου- ΔΟΥ) together with evidence of permanent resident status abroad.
This means every Greek Australian that has some form of income in Greece (through property or so on) will have to give the Directorate evidence of permanent residency in Australia and their tax return for last financial year.
Those who don’t, risk being fined.
The GOCMV has entered into the conflict, sending a letter to the Greek Finance Minister expressing their concerns with the bureaucratic nightmare the new law has created.
President Bill Papastergiadis spoke to Neos Kosmos and explained what issues the Community raised in the letter.
“What we’ve expressed is our concern in relation to the logistical difficulties by this new tax law and in particular the level of proof required by the Greek Government of foreign residents, in regards to their own tax returns in Australia, whether they’re permanent residents or not, and the obligations of their relevant authorities or representatives in Greece having personal liability as well, for whatever is passed on as agents for the Greek authorities,” he said.
As well as the new documentation needed, the Greek Government has made little effort in providing consular officials with assistance.
“So the problem is that the Greek Government has passed certain laws, but hasn’t appropriately resourced its consular offices to deal with the inquiries and also the administrative issue that needs to be dealt with,” Mr Papastergiadis says.
Only recently was the due date for lodging these documents to authorities extended. Greek Australians have until March 31st 2013 to get their paperwork together.
Causing an even bigger headache, the same documentation has to be given annually to Greek authorities.
Without a resolution in sight, the GOCMV will follow up their letter in attempt to get a clearer outcome.
“What we will do is in about a week or so we’ll follow it up with another letter trying to organise a telephone conference with the relevant representative of that office to talk to them in more detail about it,” Mr Papastergiadis says.
Hope is fading for a solution since the law has already passed. Now the negotiation process will have to focus on changing the number of documents required and the cost of such a process to be minimised.
Mr Papastergiadis isn’t hopeful of a quick solution.
“I doubt it will get resolved,” he says. “The laws passed. The only thing they’ve done is delayed the requirement to complete by three months”.
As well as the documentation problems, Greece hasn’t addressed the issue of double taxation in its new laws. Neos Kosmos understands the Greek Government is in talks with the Australian Government to avoid double taxing Australian residents.