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The Greek official charged with cracking down on tax evasion in the indebted country has been accused of failing to collect fines imposed on smugglers of fuel and heating oil.
By Harry Wilson
7:08PM GMT 02 Jan 2012
Yannis Kapeleris, the Greek finance ministry's secretary general for tax and customs affairs, is facing charges for alleged breach of his duties, a crime that can carry a life sentence.
The charges have been brought by prosecutor Grigoris Peponis just days after he briefly resigned his position following a public fight with Greece's coalition government.
Mr Kapeleris is facing calls to step down amid the claims of his alleged failure to pursue fuel smugglers. A two-month investigation by the authorities found claims that he obstructed efforts to fine petrol station owners for smuggling fuel, a charge Mr Kapeleris denies.
Lost tax revenues related to the case are estimated at more than €15m (£13m).
Tax evasion and avoidance in Greece is regarded as endemic and the crackdown comes as the country attempts to convince its international creditors and its fellow euro zone members that it can find a way to repay its debts.
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Greek public sector debt amounts to more than €350bn and talks between the government and the creditors have as yet failed to reach a deal on how the borrowing, which amounts to more than the country's entire annual economic output, will be repaid.
Reports in the Greek press on Monday suggested that Germany is looking at proposals to accept a 75pc haircut in the value of Greek government bonds as part of a debt swap deal.
A new deal would go well beyond the terms of an October €130bn bail-out package agreed by European leaders, which called for a 50pc write down on the nominal value of more than €200bn of privately-owned Greek debt.
Cases like that brought against Mr Kapeleris are likely to undermine already weak investor confidence in the ability of Greece to meet its financial obligations.
External loans are critical to Greece's ability to remain solvent and the country needs to secure its next loan instalment to meet the upcoming repayment of an €11.4bn bond due to mature in late March.
Greek tax crackdown official accused of failing to collect fines - Telegraph