Tax affairs.

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allan
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Tax affairs.

Postby allan » Wed Aug 14, 2013 3:27 pm

After visiting my accountant and after his calculations I am about to receive a hefty tax bill.

He explained that I could pay it all in one lump sum (fell off my chair at that suggestion) or 3 equal part payments over the year.

I recall reading somewhere that you could to pay in 12 monthly installments if the bill was more than you could afford.

Any help before I decend on the tax office?

Rej
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Postby Rej » Wed Aug 14, 2013 4:15 pm

Not much help, but, if you pay as a lump sum without undue delay, you get 1.5% discount

Kilkis
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Postby Kilkis » Wed Aug 14, 2013 4:23 pm

The three monthly payments are not spread very much and certainly not over a full year. Last year mine were 31 July, 28 September and 30 November. I haven't received this year's bill yet but the submission recently went in and I am expecting the bill any day now. I already know what it will be, from my accountant, but haven't got the official demand yet. To get the 1.5 % discount I would have had to pay the full amount by 31 July.

I could be wrong but I think spreading the payment further only applies if you are on very low income or possibly unemployed. I don't think simply saying you can't afford to pay it will work. Your accountant should know what the rules are?

Warwick

Rej
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Postby Rej » Wed Aug 14, 2013 4:28 pm

Just got mine. If I pay by the end of August I get the discount. Otherwise, three instalments - 30th August, 31st October and 31st December.

Kilkis
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Postby Kilkis » Wed Aug 14, 2013 4:32 pm

That makes sense, Rej. I think the deadline for submission was one month later this year compared to last year.

Warwick

allan
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Postby allan » Wed Aug 14, 2013 5:19 pm

Thanks Warwick,

Just as my accountant explained.

So how do you get the 1.5% discount after the date?? No bill, but, you must have paid it before the bill arrived. Typical Greek logic again.

Aggghhh I am at a loss again with this stupid system.

Warwick, how can you get the discount by paying in full by 31st July???

Kilkis
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Postby Kilkis » Wed Aug 14, 2013 5:39 pm

31 July was applicable last year, Allan. Judging by Rej's experience it is 30 August this year.

Last year my tax bill had four payment slips down the left hand side. The bottom one was for the full amount, had a 1.5 % reduction and a payment date on it. Provided I paid by whatever that date was then I would have got the reduction. The other three slips were each for one third of the full amount, i.e. no reduction, and each had a date on it. I opted to pay the three instalments rather than get the small reduction. The first instalment date was the same as the full amount date so I only got to delay two payments.

Your bill this year should be similar but the dates will probably be different. Hopefully the date on the bottom slip will be after you receive the bill. Pay it by the date shown and you get the discount. There might not be a big gap between the delivery date and the payment date. If you have to pick up post from a cafe or similar it would be worth checking every day to see if it has arrived.

Warwick

allan
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Postby allan » Wed Aug 14, 2013 6:59 pm

Thanks again Warwick.

Perfect explanation.

Fortunatley my post box is outside my house and the postman leaves the lid up to let me know of any post he has left, and as I can see it from the kitchen, it saves me time going down the steps.

Lets just wait and see..

Carolina
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Postby Carolina » Wed Aug 14, 2013 7:02 pm

Perhaps it depends on when your tax return deadline is - mine is August 30th and I haven't yet submitted my tax return so would hope that I get to 30 September to pay the first installment or the full amount with discount.

Kilkis
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Postby Kilkis » Thu Aug 15, 2013 9:33 am

I'm not sure what my deadline is/was this year. Before they started introducing extensions in the last couple of years mine was always at the end of the list of dates in late May or early June. I don't know how that translates when they extend the deadline. I received an email from my accountant on 1 August, with an attached computer produced tax statement, saying that I would receive the official copy in the next 2 to 3 weeks so I presume he had just submitted it. I'll report when I receive it to give people an idea of how long it takes from submission to receiving the bill.

Warwick

Kilkis
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Postby Kilkis » Fri Aug 16, 2013 9:20 am

Allan, this article in Ekathimerini suggests that it might be possible to pay in instalments AND get a 1.5 % discount if you do it via credit card? Perhaps worth asking your accountant about?

http://www.ekathimerini.com/4dcgi/_w_ar ... 013_514198

Warwick

Hudson
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Postby Hudson » Fri Aug 16, 2013 11:33 am

Kilkis wrote:Allan, this article in Ekathimerini suggests that it might be possible to pay in instalments AND get a 1.5 % discount if you do it via credit card? Perhaps worth asking your accountant about?

http://www.ekathimerini.com/4dcgi/_w_ar ... 013_514198

Warwick


If you use a UK/Sterling credit card you may well be charged 2.75% for the transaction.

allan
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Postby allan » Fri Aug 16, 2013 12:49 pm

Thanks Warwick, I noticed the article this morning.

I think ( I may be wrong) the idea is to open a Greek bank account and be issued with a Credit Card for the ammount of your tax bill, the bank pays it in full and you pay off your credit card over however installments the bank will accept, hence 36 payments you loose the 1.5%.

12 month interest free loans/purchases on a credit card seem to be the norm here in Greece.

Hudson, I do not have any Credit Cards only a Debit Card from my UK bank and we know how expensive their transactions are. :evil:

Kilkis
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Postby Kilkis » Fri Aug 16, 2013 1:27 pm

Personally I use Greek bank issued debit and credit cards in Greece and UK bank issued debit and credit cards in the UK. The only exception is Paypal which won't accept my UK credit card, only my Greek one, so Paypal transactions in the UK are billed against the Greek credit card. Fortunately I only use Papal when it is the only option, probably averaging less than once per year over the last five years.

I agree that paying over 36 months loses the 1.5 % discount, Allan. The article seems to imply, however, that you can pay over as much as 12 months and still get the discount. That would make sense if, as you say, the credit card paid the bill in full at the start and then you repay the credit card over 12 months since the government gets immediate payment. I am pretty sure that, with this method, you would get charged interest every month on the outstanding credit card debt which would be significantly more than the discount. With shops, these deals normally operate where you sign a direct debit mandate against the credit card and the shop bills the card each month. That way, if you pay the credit card in full each month you don't get charged interest. Normally, however, the shop increases the price for these deals to cover their increased costs so I cannot see that the government would give a discount if the scheme operates in this way.

Confusing?

Warwick

allan
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Postby allan » Fri Aug 16, 2013 3:11 pm

I cannot see Greek Banks handing out Credit Cards willy nilly to all asundry just to clear their tax bill.

Proof of income, E1, ability to pay, regular deposits, credit history, etc...

My Local. Gvt. pension is sent to HSBC (their bank) this is then forwarded to the bank of my choice, UK at the moment.

If I could by-pass my UK bank and send it direct to Crete (I say Crete because HSBC have branches on mainland Greece but not Crete) life would be easier.

OK they do use Bank of Cyprus...but... mmm

Unable to get any contacts from my pension Dept. re HSBC but still trying.

I realise you have worked in Greece Warwick so maybe it was easier for you, as with a certain document I have to wait 5 years for. :twisted: :twisted:


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