Greece, a model with zero tolerance for tax evasion

2025-10-16 09:38:00, Kosova & Bota CNA

Since the financial crisis, Greece has, through a series of rigorous measures, recovered its state finances but also its image, becoming a model for correctness in the payment of tax obligations.

The relevant control structures have been put into action to ensure that everything works with zero tolerance for tax evasion in Greece. The DW team experienced this firsthand while accompanying a civil tax investigation team in Athens with cameras.

Civilian tax investigation agents in action

Penny and her team want to find out if shops in central Athens are paying VAT correctly. Penny tells us that the structure has a duty to help increase state revenues and prevent tax evasion in the first place.

One of the tax investigators mingles with the customers of a jewelry store and discreetly observes the cashier, while Penny and their colleague wait for him outside. But nothing unusual. The customers also have a purchase receipt.

A few streets away, the tax office employee and her colleagues find something. In a restaurant, they check the tables. There should be receipts for orders. That's the rule.

The waiter finds himself struggling to explain himself when speaking to the tax investigation team:

How are these three things going?

Waiter: They haven't been printed yet.

Penny: Okay, let's talk about this.

Waiter: Of course I recorded these dishes, but I didn't have time to print them. I can do it right now. I was interrupted by a customer.

Penny: That's not an excuse. The customers have already eaten their appetizers.

Application for citizens to report complaints

Authorities have strengthened surveillance not only through undercover tax investigators like Penny, but also with an app through which citizens can report missing or counterfeit invoices.

Penny has now electronically recorded the restaurant's violation. The waiter must sign on behalf of the owner, who will face a fine of at least 500 euros. He does not want to be interviewed.

Tax investigators put on their service vests after leaving the premises, because the undercover part of the investigation for the day is over. Whether with or without a vest, Penny says that she always feels safe in her job: "I know that our visits are not entertainment for business people. But it depends on how you talk to them. If you treat them with respect, they will respect you. For Penny and her colleagues, trust in tax ethics is good. But control is better.

From a problem area to a model

15 years ago, Greece was on the verge of bankruptcy. The country was hopelessly in debt and had to be bailed out by the EU and international lenders.

Today, Greece has regained its economic footing. The country has been able to repay part of its billion-dollar debts.

Thanks to the specially established tax agency, it has been able to halve the loss of VAT revenue in less than ten years.

George Pitsilis, the Independent Authority for Public Revenue, says that "this is an issue that concerns the whole of Greek society. If we want to achieve a profit for all and justice, then we all have to contribute and always ask for a receipt, for example. I think the mentality of citizens has changed in recent years. They understand that it is important to be yourself and respect the laws." Because VAT is one of the most important sources of state revenue. In Greece it is 24%, slightly above the EU average./ DW