By Nick Siriodis.
From September 28 to 30, the Tax Governor of the Independent Authority for Public Revenue (IPRA), Giorgos Pitsilis, was in Sydney to attend the 15th Plenary Session of the OECD tax administrations.
During his visit, he held a number of crucial meetings with representatives of the Greek Australian community to discuss issues of concern including their relations with the Greek Tax Administration and the new digital services of AADE.
Mr Pitsilis presented the digital applications of IPRA that contribute to facilitating and better serving expatriates for the fulfilment of their obligations. The Governor proposed to the Greek Australian member of NSW Parliament, Sophie Cotsis MP, and representatives of the Greek associations of AHEPA, Cretans, Kytherians, Pontians, Epirus, Laconians and Kastellorizians, to collect questions about issues faced by expatriates in relation to their tax obligations in Greece, so that they can be answered by IPRA.
At the same time, Mr Pitsilis informed the expatriates that discussions are underway by the Greek Ministry of Finance and IPRA with the Australian Government for the conclusion of a double taxation agreement, which is expected to have a positive impact on the diaspora. At the moment, 82,000 Australian Nationals hold a VAT number in Greece and 30,000 of them have Greek citizenship, while another 51,000 who have Australian citizenship are also estimated to be descendants of our expatriates.
The Governor of IPRA gave an exclusive interview to The Greek Herald, responding to critical issues which concern the finances of thousands of expatriates. Mr Pitsilis also spoke about the fight against black money, the digital State, the evaluation of his work to date, and sent a message to the Greek diaspora. It should be emphasised that Mr Pitsilis was declared a member of the Management Council, FTA bureau and also that IPRA has undertaken the conduct of the 17th Plenary Session in 2024 in Greece.
‘Fiscal responsibility doesn’t cost more, it has more benefits’:
A few days ago, the Greek Minister of Finance, Christos Staikouras, referred to the fight against black money and the financing of terrorism. What are the main directions of this initiative and how will it be achieved in practice Mr Pitsilis?
The Independent Authority for Public Revenue is firmly committed to these directions as well. These are two major issues for us, which are not only of economic and fiscal interest, but also of other kinds. Our action moves in three axes: First, in the continuous education and updating of the know-how of our people. Secondly, two-way communication and exchange of data and know-how with the authorities of other states. Thirdly, an excellent cooperation with the Ministry of Finance, but also with the other ministries, so that we have the appropriate legislative tools to act.
There is a general feeling among citizens that the one who is 100% legal and does not hide income, is the one who in the end pays the price. What do you say to that?
I answer directly that at the end of the day, they are the smart guys because they are doing the right thing. I give you a prime example. During the pandemic, the Greek government, through the digital tools we developed at IPRA, gave significant amounts of money to support households and businesses. First, if taxes were not paid, there would not be any money for these aids. Secondly, the aid was received by those who had declared their real incomes in previous years. Who was unhappy? Those who were left out, because they had declared such low incomes, that there was no difference with their reduced income, due to the restrictive measures for the pandemic. In any case, fiscal responsibility does not cost more, it has more benefits.
‘Two main axes of our action – Efficiency and Fairness’:
The digital State is one of the big bets of this government, which it seems to be winning. Compared with Greece a few years ago, how much has the landscape changed in your area of responsibility?
The steps taken from 2020 until today are many and great. We at IPRA have created many new applications and new platforms so that citizens, households and businesses can receive their aid, but also make their transactions with the tax office and Customs remotely. Consider that, from the platform alone, myBusinessSupport, 10 billion euros were passed and given to the market. At the same time, we developed the MyData platform, an e-book system for all businesses, based on the digital version of invoices and receipts, and has been recognised as one of the most innovative systems internationally. So we stepped on the very good digital know-how we already had, developed all these digital tools and continue to update and evolve our knowledge and experience, for the benefit of citizens and businesses.
If you made a valuation of your project to date, what things would you be most proud of and what are your goals for the future?
From the first day I took the position of Head of the Tax and Customs Administration of Greece, I set out two main axes of our action: efficiency and fairness. These two axes make up the big issue for us: building a relationship of trust with citizens and society as a whole. I think we have taken very important steps in both of these areas. With digitisation as a weapon, we have improved many of our processes, simplifying the daily lives of citizens and businesses. At the same time, with transparent procedures and publicity of our action, we upgraded the process of resolving citizen’s disputes with the tax office, resulting in a sharp reduction in cases that end up in the courts and strengthening the feeling of citizens that, if they are right, the tax administration will recognise its mistake, without making them suffer.
Talks with the Australian Government to avoid double taxation:
You were in Australia recently. What was the purpose of this trip and who did you meet?
The purpose of the trip was to represent Greece, from the position of Governor of IPRA, at the 15th OECD Plenary meeting of the Forum on Tax Administration, in Sydney. There, I had the opportunity to exchange views with my counterparts from all over the world, but also to present our own achievements. However, because we are in constant communication with all taxpayers, inside and outside Greece, I sought and met with members and associations of the Greek diaspora, listened to the issues that concern them, and committed that we will examine them as soon as possible. We put a lot of weight on serving taxpayers, who are far from home.
A major issue is the double taxation agreement between Greece and Australia. Tell us a little bit about it.
Discussions are underway between the Ministry of Finance and IPRA with the Australian Government for the conclusion of a double taxation agreement, which is expected to have a positive impact on the Greek diaspora, as 82,000 Australian nationals are holders of VAT number in Greece, and 30,000 of them have Greek citizenship, while another 51,000 who have Australian citizenship are also estimated to be descendants of our expatriates.
The current Greek government had promised to improve the conditions of service for expatriates abroad in tax and customs matters. What are the improvements made in recent times?
This was the goal of our initiative to meet with the representatives of the Greek diaspora in Australia. We had a very substantive discussion and agreed to take the issues of concern of our expatriates through the Consulate General, so as to formulate appropriate and tailored solutions to these issues. It is my feeling, however, that the digitisation of both IPRA and the Greek state in general in recent years has provided many answers to problems that in the past preoccupied our compatriots in Australia and elsewhere.
Finally, a message you would like to send to the Greek diaspora of Australia.
We may be 15,000 kilometres away, but we are always by your side.
, Giorgos Pitsilis, was in Sydney to attend the 15th Plenary Session.){kind=link}