This is a nice example about the insanity ruling the mad house called “Greece in Times of IMF Austerity”. Supposedly one of the new society class of the neo-homeless due to the economic crisis would want to make a tax declaration for 2012. He would declare zero euro income for the calender year 2011.

According to Greek taxation law, the Finance Ministry estimates that one unmarried person needs 3,000 euro per year to survive, therefore the homeless is charged with 3,000 euro ‘deemed income’. Furthermore he will have to prove he made expenses at 25% of his ‘deemed income’ by showing receipts totalling 750 euro.

If he cannot show receipts, he will be charged with a fine of 10%, that is 75 euro. Also he will have to pay tax in advance 55% of the 75 euro. That is 41,25 euro.

News postal The Best.gr that brought this example, calculated that the homeless will have to pay 116.25 euro for ‘daring’ to submit a tax declaration with zero income.

Even if I do not understand the calculation, to ask a homeless or any person with zero income to pay taxes is if not weird at least exploitation of the poor.

Homeless with Tax Dignity

The example of the homeless is maybe an extreme one, but any person with income lower than 5,000 euro per year can fall into this trap. Even if the EU describes as poor people with up to 6,000 euro annual income.

In Greece, tax-free income is up to 5,000 euro per year (416 euro per month). However even the really poor are obliged to spend 25% of their income in order to boost the Greek economy in deep recession… This spending has to be proven through receipts. Otherwise there is a fine of 10% is imposed for not spending the money you do not have…