In a super-swoop yesterday a team of Tax Officials tried to shut down the new Inter-Resort Bus Service.
They pounced on one of our bus drivers in San Stefanos and Arillas, confiscating his driver's licence and documents. These are essential, since if he doesn't carry them on him he is not allowed to work. Eventually, they agree to return them.
When I confronted them In Arillas, their second super-swoop, and demanded to see their IDs and know what they were doing by stopping a legal bus service, presenting copies of my UK Company Incorporation details, they then changed their officious tone, and eventually agreed that to stop the bus service, since no laws were being broken, would not be appropriate. I think they were trying to establish whether drivers were taking cash fares on board, which of course, as our informational material clearly states would be illegal under local laws. Having established that our drivers had not broken any laws they agreed to conference in Sidari, followed up with a meeting at the central Tax Office in Corfu.
The bus service was allowed to continue to run.
Their argument was that because my company was not registered under the Greek tax system it was trading illegally. I pointed out that Corfu Direct was registered in the UK and was subject to UK tax liability and that in order to liable for tax in Greece it would have had to be registered as a Greek company. I pointed out that as a legally incorporated company in an EU State I was subject to EU Laws as regarded tax. (Funny, I thought that Greece and Britain were both members of the EU and both subject to EU Law). They did not disagree.
This is a classic anti-trust "Catch 22" clause that Greece invokes to unlawfully protect its internal market, which is in total contravention to Articles 101 to 109 of the Treaty on the Functioning of the European Union.
In order to stay fully within Greek Law Corfu Direct had appointed a registered travel agent, so that all the necessary licences to engage the services of bus companies would be fulfilled. (I did my homework before leaving the UK).
The meeting at the Tax Office established that the Inter-Resort Bus Service was a 'fully legal' enterprise, but conversely, they refused to accept the legal status of any company to trade in Greece without a Greek tax number, which as I pointed out was not possible to get.
In order to complete our two-month trial they insisted that I transfer the entire Bus Service project to my registered agent, thereby effectively stealing the project and giving it a Greek company. I would describe that as state sponsored theft, but I had no choice if the busses were to keep running, and I was to get back a penny of the huge investment I have made to get the idea off the ground. The Tax Authorities refused to acknowledge the legal status of a legally incorporated UK Company and its right to trade in an EU State.
This matter will now be the subject of an official 'plaint' to the European Commission, since it appears to be a flagrant violation of one of the most central and important EU anti-trust Treaties. Microsoft fell foul of this very Treaty and ended up with around a half-billion Euros in fines.
As a result of my decision to transfer the business rights for this trial, the busses will keep running, and the service has now been fully sanctioned under Greek tax Law.
I hope, therefore, that you continue to support it despite what you have read here. It's not all bad news. The service has proved very popular and has a strong demand. Now that it has an official sanction, the major tour operators are now bale to step up and offer tickets to their guests, without fear of falling under the same official hammer - so keep pestering your Reps for tickets and help make this a success.
Unless Greece decides to adhere to EU Directives in the near future, next year the service will have to operate in a different way, with tickets only being available to purchase online. Online sales are exempt under Greek Law. However, with smart-phones, iPads and internet cafes in abundance this should not be a problem, and tickets will be delivered direct to your accommodation. Even more convenient!
The really sad part of this debacle is that in setting up this venture one of my key objectives was to bring innovative ideas to Greece, in a way that would allow most of the revenues generated to remain to support the local economy. This would also generate much needed tax revenues to assist Greek economic recovery.
Sadly, it seems that Greece simply doesn't want them. No wonder the economy is in such a sad state.
