20/01/2016 14:46
Taxation on employers’ contributions to social funds for workers is described as a ‘’casus beli’’ for both workers and employers.
Following the decision of the tax department to send tax returns to impose 30% taxation to semi-governmental organizations on contributions to various social funds retroactively from 2009, OEB, CCCI and trade unions SEK and PEO unite their voices in reaction.
At a meeting with Finance Minister Harris Georgiades yesterday, general secretary of SEK Nikos Moyseos described this desision as unprecedented and unacceptable, as organizations may shift the burden of taxation on workers, as he said.
He stressed that if such a decision goes forward it would constitute a ‘’casus beli’’ for trade unions.
This position was also adopted by CCCI through its general secretary Marios Tsiakkis.
In his statements on state radio this morning, Mr. Tsiakkis stressed that it was a responsibility of the tax inspector to have identified this issue years ago and inform employers, workers and professionals properly.
In his statements to StockWatch, the director of industrial relations at OEB Michalis Antoniou recommended composure and sobriety to all sides noting that "labor tax issues are very sensitive and there must be sober consultation between social partners before anyone comes up with such decisions."
He noted that every time a tax is imposed, there are serious implications on various levels.
The government's intention to impose taxation on employers’ contributions to various social funds such as health care, welfare funds and redundancy funds, caused the reactions of trade unions of employees at semi-governmental organizations.
According to the General Secretary of OHO SEK, Andreas Elia, based on his information, it is certain that semi-governmental organizations will see into this with their tax advisors before proceeding to pay amounts due.
According to Mr. Elia for decades no tax has been imposed on contributions to social funds and there has never been such an issue.
He noted that this practice starts with some semi-governmental organizations but if it is allowed, it will be extended to the private sector and it will be a reason to cut benefits of workers.
The General Secretary of SIDIKEK-PEO Antonis Neophytou told Stockwatch that social benefits are exempt from taxation, because they are not considered an income and so it must remain, as he said.
"This is a way towards revenues for the government by interfering in collective agreements while at the end of the day, it is employees that are likely to pay, by losing benefits," he argued.
"If it is allowed, this practice will also affect the private sector", Mr. Neophytou warned.
Following the decision of the tax department to send tax returns to impose 30% taxation to semi-governmental organizations on contributions to various social funds retroactively from 2009, OEB, CCCI and trade unions SEK and PEO unite their voices in reaction.
At a meeting with Finance Minister Harris Georgiades yesterday, general secretary of SEK Nikos Moyseos described this desision as unprecedented and unacceptable, as organizations may shift the burden of taxation on workers, as he said.
He stressed that if such a decision goes forward it would constitute a ‘’casus beli’’ for trade unions.
This position was also adopted by CCCI through its general secretary Marios Tsiakkis.
In his statements on state radio this morning, Mr. Tsiakkis stressed that it was a responsibility of the tax inspector to have identified this issue years ago and inform employers, workers and professionals properly.
In his statements to StockWatch, the director of industrial relations at OEB Michalis Antoniou recommended composure and sobriety to all sides noting that "labor tax issues are very sensitive and there must be sober consultation between social partners before anyone comes up with such decisions."
He noted that every time a tax is imposed, there are serious implications on various levels.
The government's intention to impose taxation on employers’ contributions to various social funds such as health care, welfare funds and redundancy funds, caused the reactions of trade unions of employees at semi-governmental organizations.
According to the General Secretary of OHO SEK, Andreas Elia, based on his information, it is certain that semi-governmental organizations will see into this with their tax advisors before proceeding to pay amounts due.
According to Mr. Elia for decades no tax has been imposed on contributions to social funds and there has never been such an issue.
He noted that this practice starts with some semi-governmental organizations but if it is allowed, it will be extended to the private sector and it will be a reason to cut benefits of workers.
The General Secretary of SIDIKEK-PEO Antonis Neophytou told Stockwatch that social benefits are exempt from taxation, because they are not considered an income and so it must remain, as he said.
"This is a way towards revenues for the government by interfering in collective agreements while at the end of the day, it is employees that are likely to pay, by losing benefits," he argued.
"If it is allowed, this practice will also affect the private sector", Mr. Neophytou warned.
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