Greek lawyers strike in protest over new legal services tax

Greece's lawyers have held a series of strikes following draconian fiscal measures to stave off national default which would see a new tax introduced on their services.

The country's lawyers have held two three-day strikes, one at the end of March and another in mid-April. The lawyers refused to appear in court and many closed their offices.

Over the past few months the country has slashed public sector wages and frozen pensions, leading many Greek workers to strike, paralysing the country's public transportation, schools and hospitals.

Greek lawyers have a specific grievance: a new 21% tax on their services. The levy is meant to crack down on tax evasion, a huge problem in the country. Costas Bakouris, chairman of the Greek branch of Transparency International, said white-collar professionals are the biggest tax cheats, with lawyers the top offenders.

Greek lawyers almost always charge per job, rather than by the billable hour, and it has become standard practice not to send a formal invoice to clients. Without proper documentation, said Bakouris, it is easy for lawyers to hide their income.

The Greek Government estimates it is losing billions in uncollected taxes each year. By adding what is essentially a sales tax, said Bakouris, the Government hopes that it will be able to get a more accurate tabulation of lawyers' income.

"The people, our clients, are the ones who will suffer from this measure," said Athens Bar Association vice president Dimitris Vervesos. "We will continue [to strike] if the Government proceeds with this tax."

A version of this article first appeared in The American Lawyer, Legal Week's US sister title.