A taxing subject
Here’s a Rhodes story (with some photos taken very early in the season); something to make you think: ‘Rhodes tax inspector dives into sea to catch masseuse.’
That’s not a logline for a new short story or anything, it was a headline in Ekathirerini at the weekend. It seems the tax inspectors were checking workers on the beach when a Chinese masseuse saw them coming, ran into the sea and swam out 10 metres to avoid being caught and fined. The female tax inspector went after her but couldn’t arrest her in the water as that comes under the coastguard’s jurisdiction, but she was able to get the lady back to shore where, I assume, all hell broke loose. If you were wondering what the reason for the dramatic action was, well…
Apparently (and I’ve not checked this up, it’s only what I’ve heard) you can be fined up to €10,000 for working illegally in Greece and the person employing you can also be fined the same. I know people joke about how many businesses close when the tax inspectors are on an island, and you might think with good reason – but really, people should be employing others legally and doing it right, for their own good, the good of customers and of the workers of course. But it’s not always that cheap. I know that Yiannis pays Neil’s Ika contributions and wages through the bank as should be done, so he is all legal, as I was when I worked there. But obviously this masseuse wasn’t and she was probably trying to make some kind of living without having to pay the huge costs that having a small business now entails.
There have been other posts on this subject here in the past, but for certain jobs and business you can expect to pay (after start-up costs): a building rental, an annual ‘I have a business so please tax me’ tax of several hundred Euros, an accountant to do your books each month (between €80 and €150 per month or more), a certain amount of income tax in advance each year on top of your actual income tax for the previous year, our last one was €400 towards the following year, and then your 35% tax on whatever you earn (if freelance) with no allowances, there’s the VAT to charge on and hopefully get back which puts up some items to above affordable-to-buy levels, and then you pay your health insurance which was, when Neil had TEVE several years ago, starting off at around €200 per month (twice the price of my private insurance, which doesn’t cover pension of course) and then you have to pay your staff, buy your stock, pay for insurance (allegedly) and there are probably some other things too, oh yes, often there’s a payment to the local authority for space outside your business, some kind of local business tax too and any contributions for IKA (health cover) for your employees. And all that (and more expenses I’ve not thought of) is one reason there are so many small businesses closing down and so many tax-avoiding masseurs diving into the sea off Rhodes.
Have a nice day!
