The Association Culture for Change, representing professionals and scientists active in the intersectoral interconnection of culture with civil society and promoting socio-cultural innovation in Greece, comments on the draft law “Measures to reduce tax evasion” that affects freelancers, in order to inform its members and enlighten the aspects of the economy that will deal a further heavy blow to the already burdened and precarious working conditions of cultural professionals; and of the third sector.

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More specifically:

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Presumptive calculation of income tax, introduced in a horizontal manner, will create more injustices, rather than solve problems of professionals in the industry. It is not only the additional financial burden, combined with older measures that remain in force even if reduced, such as the business tax and the advance tax, but also the lack of tax justice as the new taxation is imposed:

a. on gross revenue, contrary to Article 4 (5) of the Constitution, which provides for the contribution of each to the public burdens according to his powers;

b. on the gross wage cost of the minimum wage, considering freelancers as employees despite the fact that the Council of State has ruled since 2019 that these are different occupational groups. For example, freelancers do not receive 14 salaries

c. revenue already launched and calculated under other circumstances in 2023.

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In addition, the evidence measure, in addition to being anachronistic, has proven historically and extremely ineffective, and it is far from the digital state and modern control methods, which we also consider as a way to combat tax evasion. We fully share the concern of a section of society as to whether presumptions are capable of actually curbing or, on the contrary, encouraging tax evasion.

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Given the use of technological applications and the nature of the IPA professions that provide specialised services directly to private and/or public sector (B2B) companies, individual cultural enterprises operate with full transparency, which should be rewarded, not penalised.

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It is imperative that there be tax breaks and measures to improve the business environment and revive Greek entrepreneurship in the field of culture, as it urges:

1. the international and domestic literature

2. the recent decision of the European Parliament of 21 November on the adoption by EU Member States of specific legislation to protect artists and cultural professionals against precarious working conditions. This is the first time that the European Parliament has legislated in order to obtain legislative intervention and has not adopted a simple directive, thereby stating the urgent need to support this professional group

3. integration into the Recovery Fund of the project: “Labour and Insurance Reforms in the Creative and Cultural Sector”.

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Considering all of the above, Culture for Change claims:

● the exclusion of cultural codes from the three objective criteria as set out in the bill; and

● the cooperation between the Ministry of Culture and the Ministry of National Economy and Finance of Greece so that part of the proceeds from the fight against tax evasion will be channeled, in addition to Health and Education, to the sectors of Culture and Civil Society, which are proven to contribute to the improvement of the quality of life of Greek citizens. In particular, the financial support is proposed to be directed to specific programmes that enhance the cultural participation of Greeks and the production of original cultural works with a social character with the contribution of the private sector of culture, in order to activate cultural human resources and create new jobs.