Greek Companies Unable To Pay Taxes Explode From 182K To Over Half A Million In One Month

Tyler Durden's picture

The US bug, whereby the worse the economy, the higher the stock market and bond prices must have shifted to Greece, because while the Greek stock market was the best performing "asset" class in October, and Greek bond yields are plunging just because the greater fool stock posse has now moved to the insolvent nation if only for a few months, the economic reality just gets worse by the minute. Case in point - Greek corporations, or what's left of them, and what Greece needs more than anything - taxes. Kathimerini reports, in what is now nail overkill on the Greek economic coffin, that "hundreds of thousands of enterprises are unable to fulfill their tax obligations, according to the data published on Monday by the Finance Ministry. Within just one month, from the end of August to end-September, the number of corporations that have fallen behind on their taxes soared from 182,785 to 526,477." No, you read that right: the number of companies that went in arrears on their tax obligations has tripled to over one half million in one month. The same month in which the Grecovery was rumored to be in full swing and when John Paulson was buying every Greek stock he could find.

It's a crazy pills world as Kathimerini reports.

According to a senior ministry official, most of those 343,692 additional enterprises that failed to meet their obligations have entered special payment programs in the hope of settling their debts in 12 installments. The total amount that corporations owe to the state comes to 39.3 billion euros, but only 647.69 million euros of that has been arranged for payment.

There was a silver lining: with virtually nobody working officially, as unknown amounts have shifted to the gray economy, the taxpayer debt have plunged. Why? Simply because if one doesn't officially make money, a luxury corporations can't afford, one doesn't officially have to pay any taxes, hence no taxpayer debts.

Surprisingly, the opposite trend is apparent in taxpayer debts, as debtors numbered 2.8 million at the end of August, a figure which fell to 2.59 million at end-September. In total, they owe 22.6 billion euros.


A ministry source pointed to the improvement in debt collection, as total receipts in the year to end-September amounted to 2.13 billion euros, up by 35 percent year-on-year.


September revenues grew by 37.2 percent from September 2012, which the general secretary for public revenues, Haris Theoharis, attributes to “the high level of collection of past years’ debts.”

Good luck collecting in current year debts when the unemployment hits fresh record highs, and thus the base of taxpaying individuals craters.

As for corporations, our best advice is for Greece to tax the bankruptcy process. That's the only way the dying country can possibly collect any "owed" funds from what is left of the country's once thriving businesses.

But at least the Greek economic skeleton still has its precious euro.

Meanwhile, elsewhere in the same basket case country...

Three police officers were injured on Monday as a group of protesters smashed into a courthouse in the city of Iraklio on Crete where the trial of 92 farmers arrested in 2009 was under way.


The three officers suffered scrapes and cuts from falling glass when a group of farmers smashed through the courthouse’s main door at around 3 p.m. demanding that their colleagues be acquitted of all charges.


The 92 farmers standing trial are accused of obstructing public transportation, among other charges, after staging a blockade of Iraklio Airport in January 2009.

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fightthepower's picture

Golden Dawn to the rescue?

max2205's picture

Thought they killed their power till they paid up

mjcOH1's picture

"Within just one month, from the end of August to end-September, the number of corporations that have fallen behind on their taxes soared from 182,785 to 526,477."

Nothing spreads faster than a good idea.

limit_less's picture

If you look at total tax arrears (households and businesses), it is climbing at over 800 million Euros a month as of September 2013

And the cherry on the sh*t cake comes today. As suspected it looks like the Greek government is classing unpaid and unpayable taxes as an asset on their balance sheet!

This is the same article ZH links to but it is the Greek version.

To the world the Greek media says how bad things are.

To Greeks the Greek media says what a great job the government is doing.

Nothing but the truth.'s picture

Corporations unable to pay taxes, share prices screaming ahead - sounds about right in terms of the new ' normal ' Wouldn't want to waste all that excessive printed fiat sloshing around the world.

Cacete de Ouro's picture

Greek companies have always been disingenuous on their taxes. The whole Greek corporate system is totally corrupt, always has been. Possibly they have now decided on mass to milk it even more...

It's not called A La Grece for nothing

Idiocracy's picture

How many companies total can there be in Greece?  Not many more than half a million.  The entire population is under 11 million.  Insane.  Draghi better start tapping the keyboard...

limit_less's picture

Your talking nonsense, Greeks pay as much tax as anyone else in Euroland. Despite the fact the government claims massive tax evasion. If you go by the Greek government's version, the country would be like N.Korea if everyone did pay all the taxes they were supposed to.

W74's picture

My favorite local diner is owned by Greeks.  I've always wondered why they consistantly have the lowest prices in town, yet the best looking waitresses.  Coincidence? I think not.

Non Passaran's picture

Could it be because their chef is that Yanni character who spits in food he makes?

AllWorkedUp's picture

Fuck their taxes. Why should they pay taxes to the Rothschilds? Fuck them. Go Greeks.

Big Johnson's picture

As long as the EU currency structure exists in its present form the parasitic countries will continue to milk it.

limit_less's picture

Get you terminology correct. When you say "parasitic countries" you actually mean "parasitic governments". There is a huge difference.

Sabibaby's picture

Stocks will still go up despite businesses not paying their taxes, not sure what the problem is...

ebworthen's picture

This is great.

It is the "Great Withdrawal".

The withdrawal of individuals, families, and small companies from the Government/Banking kleptoligarchy.

I can taste the collapse coming, and though bittersweet it is so long overdue it will taste sweet even in death.

NoDebt's picture

"Within just one month, from the end of August to end-September, the number of corporations that have fallen behind on their taxes soared from 182,785 to 526,477." No, you read that right: the number of companies that went in arrears on their tax obligations has tripled to over one million in one month."

Any time I see a knock-your-socks-off number like that, I smell a shell game being played.  Like probably the number was always that high and they're just now admitting it (probably for some kind of leverage, not because they suddenly decided honesty is the best policy).  Something's up.  Don't know what but my Spidey Sense is tingling on this one.

Frankly, I didn't know there WERE so many corporations in such a small country.  What is that?  ALL of them?  All of them went behind on their taxes in the same month?

"No, you read that right: the number of companies that went in arrears on their tax obligations has tripled to over one million in one month."

OK, so is it 526K like you said in the sentence before this or "over a million" as stated in this sentence?  C'mon.  Stop pulling my leg and pull my finger instead.

Clever Name's picture

You edited your post before I could respond, because I was wondering the same thing. Assuming this 500k (or 1m, whichever) number is correct, how many corporations are there, anyway? This has to represent most, no? Hard to get blood from a stone...

NoDebt's picture

They changed the text in the article since my original post.  Originally the second sentence said what I quoted ("over 1 million").  Obviously a typo the Tylers have since repaired, but the point still stands.  No way that number ACTUALLY changes that much, that fast.  Not to be taken at face value.  Something definitely changed, but it wasn't reality (which sucked last month almost as much as it sucks today for the Greeks).

Clever Name's picture

Even so, how many 'real' corporations/business entities does this represent? I assume they are paying out salaries in cash in leiu of paying taxes Think theyll shut the companies down, therefore starving their economy even more?

wintermute's picture

With a population of 11 million I would imagine that 526,477 corporations / business entities is all of them.

limit_less's picture

Clever Name - The Greek government has more or less said businesses are worth more dead than alive. They want to seize productive business assets to pay overdue taxes

Bobportlandor's picture

I don't get it how does one copy and past and end up with one less word.

Your name isn't Obama is it?

limit_less's picture

NoDebt - It probably went up by so much because of the tax year. The annual tax bills were sent out in August/September. It could also have something to do with the online tax system having massive and ongoing problems. ie tax code keeps changing, laws being passed late, people not being able to submit online tax assesments etc etc etc

surf0766's picture

Give them Obamacare that will fix it !

Tortfeasor's picture

Did Leo K get sold into slavery?

robertocarlos's picture

That's awesome news. It means the end is near.

W74's picture

They should ban any and all Zydokomuna. 

Actually I think 194/195 countries should give it a try.

orangegeek's picture

clearly this is another bullish sign to substantiate the all time highs in US market indexes


buy MOAR STAWKS everyone - we are only headed down the road of prosperity and growth

sethstorm's picture

How about reporting the number of people that properly fill out their taxes (without dodging) and decrease that accordingly?  Greece's national pastime isn't tax evasion for nothing.

Escapedgoat's picture

The Greeks had a natural inclination what was wrong with their country. All the politicians paid themselves first and their Foreign puppet masters afterwards.

So they just did the maths and decided that their family came first and everything second. As for the Government(Organised Crooks) they had to be last in line for any protection money (Taxes).

They had set their priorities right from the start.

jover's picture

Has anybody googled the total number of companies in greece?

I found that number stood at around 824.000 in 2008.

Are you telling me that 65% of all greece companies are behind in taxpayments? Riiiight...

wintermute's picture

No. Not 65%, more like 100%. 2008 was still boom-time, kool-aid economy. 300k Greek businesses have probably died since then.


limit_less's picture

Jover - This is a very good reason as to why taxes are overdue.

Maybe they include social security in with taxes, maybe they dont. If they dont, the situation is much much worse than what is painted. 

hoist the bs flag's picture

None of this matters...Greek food is amazing... go long on tzatziki sauce.


rustymason's picture

The Greeks know. Either we all hang together or we will all hang separately.

NEOSERF's picture

Is "Troika" a brand of condom?   Should be given the assfucking they've given Greece...

lolmao500's picture

Excellent. Don't pay the treasonous thieves running the Greek government nor their master in Brussels. Fuck em all.