Greek Cash Ban Escalates: 'Permanent' Stricter "Capital Controls" On 3 Million Pensioners, Civil Servants Imposed

Tyler Durden's picture

In a stunning move towards the elites' endgame of 'banning cash', Greek authorities unveiled stricter capital controls for civil servants and pensioners this weekend. By drastically limiting cash withdrawals and forcing the more 'controllable' compulsory use of plastic money, Greek authorities hope to stop tax evasion through the use of 'fake cash registers'.

 

As KeepTakingGreece.com reports,

A shock-measure: civil servants and pensioners will be subject to stricter capital controls than the rest of the Greeks. They will be able to withdraw only €150 per week – with the cash withdrawal cap being €420 per week – that is a total of €600 per month. The rest of their wage or pension they will have to spend by using debit or credit card.

The news fell like a bombshell on Saturday evening and spoiled the weekend of millions of Greeks. It will probably spoil the rest of their lives too.

Greek media revealed, that the Finance Ministry plans to impose such a measure in order to combat tax evasion, but of course, not the tax evasion committed by the civil servants and pensioners as this is not possible as the state deducts their share on tax before they receive wages and pensions but the tax evasion committed by business owners.

According to the Finance Ministry plan, civil servants and pensioners will be able to withdraw in cash only part of their wages and pensions and the rest will have to remain in their bank deposit account. This remaining amount they will have to spend only through the compulsory use of debit or credit card.

“The measure will affect 2.65 million pensioners and 600,000 civil servants,” notes newspaper To Vima that revealed the shocking plan.

The newspaper adds that with this measure, the compulsory use of plastic money, the business owner , whether a shop or a professional like doctor, plumber etc will not be able to evade taxes since all transactions will be recorded in the banking system.

The Finance Ministry reasoning behind this plan is first of all the assumption that the money – or large party of the money – it pays in wages and pensions is been used in real economy without receipt thus without Value Added Tax and tax revenues for the state.

“Every month the State and the pension funds pay for salaries and pensions of approximately €2.6 billion, that is €30 billion per year.  The salary or the pension comes into the bank account of the beneficiary, who can withdraw 420 euro per week due to the capital controls.

This cash money is being used for the purchase of goods or services “and a large percentage of these transactions does not bring revenues to the state as the transactions are being done without the issue of receipt or receipt are issued by so-called fake cash registers which are manipulated to show less revenues.

In this way, the state suffers revenue losses of approximately 15-20 billion euro per year due to not collection of Value Added Tax and income tax,” from businesses and self-employed.

With this measure the state calculates that it will receive in no time revenues from V.A.T. and will not miss a cent from income tax. The state expects to rapidly increase its revenues and “proceeds to future reduction of the tax rates of 8.500,000 taxpayers.”

The Finance Ministry apparently considers to exempt pensioners of over 75 years old from the measure as well as those living in remote areas where the use of plastic money is limited.

If the measure successfully increases the state revenues and does not puts obstacles in the operation of households, “it can be extended also to salaries of the private sector.”

*  *  * 

The plan revelation triggered an outcry and anger not only among the civil servants and pensioners but also among those not affected by it. But there is more...

Plastic money compulsory for new companies

Another measure is apparently under way in the fight of tax evasion.

“Companies that are founded from next year onward plus a range of sectors of the Greek economy will only be able to accept payment via debit or credit card, according to a plan being drawn up by the government.

 

The plan, which has yet to receive the final approval from the country’s lenders, foresees all new companies having to be equipped with point of sale (POS) terminals that can accept credit and debit cards. The same will apply to numerous professions like will include doctors, lawyers, electricians and plumbers, which are all professions where tax evasion is thought to be rife.”

 

(full article ekathimerini)

Also in this case, the ambitious legislator will create 2 businesses categories and exclude form competition the new companies as they will not be able to accept cash.

Who wins?

One has also to ask who wins from these measures except the state and the revenues it calculates to receive.

For sure the biggest winner are the banks: first of all, they will keep longer the amounts of pensions and civil servants salaries. It could be 1-1.5 billion euro per month. Secondly, because they charge 2 euro per transaction via debit or credit card.

*  *  *

And the biggest loser is The average joe Greek citizen... again.

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LawsofPhysics's picture

The tighter the IMF and ECB squeezes, the more it will cost them.

Roll the damn guillotines already and end this charade.

El Oregonian's picture

The Greeks were one of the first countries to bring order out of chaos; it will be one of the first to bring chaos out of order...

it is a little New World Order-ish, but true.

skistroni's picture

Funny how this sounds hopeful to my ears.

skistroni's picture

As long as we vote for them, no matter how many heads roll, nothing will change. 

Polymarkos's picture

The majority of people no longer vote. They see it as pointless, and they're right.

 

The game is rigged. No matter for whom you cast your vote, you get fucked in the ass.

 

Your quip should read, "As long as we don't pull them out of their offices and hang them, nothing will change."

skistroni's picture

Well, I was implying the same... Cheers brother

I AM SULLY's picture
I AM SULLY (not verified) Oct 12, 2015 8:23 AM

Damn Greeks don't deserve no cash ... Damn them for their insolence!

junction's picture

According to the New World Order followers like Obama, both cash and guns should be outlawed.  The end result would be that the only people having cash will be criminal bankers and the druglords who use banks to launder their drug money and the 0.01%. And, of course, crooked cops.

CoolidgeLives's picture

Glad i'm not Greek.

nosam's picture

This is coming to a bank near you.. no matter where you are. The Greeks are the guinea pigs.

This is probably in preparation for making sure that only those who have the mark of the beast can trade.

PlayMoney's picture

Indeed people should take notes here. This road show is coming to a theatre near you in the not so distatnt future. Think i will add to my stash today.

pods's picture

Greeks are merely further along the same timeline as the rest of the world.

Vous etes Greeks.

pods

flapdoodle's picture

Not to worry... you're next.

nnnnnn's picture

wait 5-10 years

pods's picture

Can't pay your bills?

"Fuck you, pay me!"

Kid need an operation?

"Fuck you, pay me!"

This is the modern and entirely legal money system in which we live.

Granted the pensions are a ponzi, but they are no different in principle than the rest of the world's.

Betcha the Greeks are telling their kids at night that if they listen carefully they might hear the sounds of the helicopters coming to drop money to save them.

And just like here in the US, the helicopters aren't coming.

pods

skistroni's picture

The actual numbers of citizen's overdue payments to the state are painting a "Fuck you, I'm not paying you" picture. Growing at 1 billion EUR per month, currently just over 80 billion (about 45% of GDP). Granted, about 50% of that is non recoverable, related to bankrupt companies, but I think you get the point. 

agent default's picture

This only points to one thing.  There will be a one off wealth tax in Greece and it will be a heavy one.  The worse it gets and the more the troika is convinced they will not get their money back, the more likely it becomes to tr one big last grab. 

Government needs you to pay taxes's picture

How many blow jobs do you want for that set of wrenches?

Calculus99's picture

Be hilarious if a ban on cash rockets Gold to $10,000 and beyond, ie the last thing the Elite's want. 

America invented a phrase for just such a thing - unintended consequences...

SumTing Wong's picture

Another dumb ass troll. Enjoy your Visa and MasterCard when those of us protecting our wealth actually have stuff. (And it doesn't just have to be gold. Some of us have farmland and tools...and, most importantly, knowledge!)

Bendromeda Strain's picture

America invented a phrase for just such a thing - unintended consequences...

Merton and Lorenz (butterfly effect) were popularizing principles expounded by Locke and later Adam Smith.

/damn you Wikipedia

DonFromWyoming's picture

Greeks deserve every bit of the poverty and misery that is their future.

"The limits of tyrants are prescribed by the endurance of those whom they oppress." - Frederick Douglass


Calculus99's picture

Sorry Greeks but you had YEARS to realise things like this were going to happen in your country. So did the majority of people buy Gold, nope they didn't.

Same will happen to other countries and most won't buy Gold because they will have fallen into the Elite's trap, ie  smash Gold so people are scared of buying it and continually trash it in the media and call it things like a 'pet rock'.  

PS. The WSJ jackass that called Gold a 'pet rock' is going to have his career trashed and tarnished by the slur,  and rightly so. 

Polymarkos's picture

Some of us live hand to mouth and cannot afford gold. Trapped we are, yess.

 

I'll invest more in lead with a little powder behind it. That works too, sometimes much better than gold.

ghostzapper's picture

Short Greek stripper and drug dealer incomes.  

Bring the Gold's picture

I will take the other side of that bet. Long drachma and local currencies. Black markets have existed as long as taxes. They will continue to exist long after the NWO is relegated to the dustbin of history.

Herdee's picture

Good Luck trying to get small business to comply.Cash is King and always will be.In God We Trust-All Others Pay Cash.Most of these laws by government can't be enforced.

gimme-gimme-gimme's picture

I'm pretty sure this new policy is to force small business to comply.

If people can't pay you in cash any more, you need to take digital payment form. Then the transaction is registered, and then you cant evade your taxes.

It's not like people don't have full access to their money. They just can't withdraw it all to get under the table "cash" deals on stuff as easily any more.

You know things are fucked when the government has to implement policies like this. Kinda hilarious people go to this length to avoid paying tax.

The Greek people made their choice to keep the Euro, so now the hard medicine is here to stay.

youngman's picture

So when are Visa and Mastercard going to be taken over by the US Government

savagegoose's picture

you're gonna like austerity " greek style "

MoonSun's picture

If this is true, expect the Greek government to extend the capital controls to everybody as those who are not pensioners or civil servants rush to take their cash from the bank. 

quartshort's picture

Any Greek w/ $$$ in the bank still deserves the ass rape they are going to get. (are getting) I think that's the role this move is taking:Those that could remove all/any of their money already have done so... it's those pesky reoccuring deposits, which is all the banks have left to control, are subect to this treatment. My only question is: Why are the Greek banks not engulfed in flames yet? 

zenon's picture

At this stage it's still a trial balloon. As reaction seems muted (by the TV-watching public) it could get implemented. There are cetain problems in restricting this to civil servants. For instance what is to stop one form transfering his cash to a friend who is not in civil service who in turn withdraws and gives the cash to the original owner?

RedDwarf's picture

What will stop him is that said friend will need every single euro of physical cash as well.  Physical cash is lifeblood of the real economy and the black and grey markets when financial oppression is rampant.  You need the cash to evade not just the taxes and tracking of transactions, but to trade goods and services with friends, neighbors, and small businesses who do not have merchant accounts.

You are right that such trades will happen, but it won't be at a 1 for 1 exchange rate.  It will be a multiple.  In effect digital and physical euros in Greece will become two distinct currencies with physical euros being more valueable.

SpanishGoop's picture

"as the state deducts their share on tax before they receive wages"

So now just as the rest of the civilized world the Greeks go to quadruple taxation.

 

Don Pancho's picture

so the government is going to force an even more underground and black market...brilliant plan...

Joe A's picture

Greece is out of the headlines now so TPTB can do there whatever they want.

More news on KTG: they will also tax you when you have no or low income. They will consider you a 'free lancer' then and will tax you 26%.

http://www.keeptalkinggreece.com/2015/10/09/are-you-alive-in-greece-lend...

Tsipras is a traitor. But after all, he was 'advised' by the US in the run up to the 3rd bailout. http://www.keeptalkinggreece.com/2015/09/27/washington-closely-advised-g...

Bendromeda Strain's picture

The article fails to mention checks. I would be interested to know where they fit in the equation, as shelter is a major monthly expense.

samjam7's picture

Checks in Europe have been abandoned a long time ago, it's a relic in our eyes, we use a lot more cash than you guys and anything else will be wired. Checks are expensive and not convenient.

foxenburg's picture

Je suis Krugerrand.

Secret Weapon's picture

If you like your socialism - you can keep your socialism.  Dumb fucks.

A. Bean-Counter's picture

Meanwhile the oligarchs take their holidays in Switzerland where they can check just how much tax they managed to evade last year.

Lostinfortwalton's picture

If you have socialized medicine why would you need to pay the doctor by electronic, or any other, means?