Photovoltaic contribution: Execution of an unarmed captive in a hostage
Following the discussion of tax planning in the turnover of existing photovoltaic companies, reasonable questions arise for the in-depth analysis of these investment data. The citation of this reflection suggests that the planned taxation is not based on econometric data and figures, but instead is an unexpected and provocative raid on the easy goal of energy investment, with the pledging of plundering yields.
It is firstly assumed that the ex-post taxing of investments, for which this tax was not given in the selection, planning and implementation of these investments, raises strong questions of constitutionality and ultimately the legality of the proposed legislation.
In addition to this, and on a second level: with this disorderly attack, attempting to “flatten” the yields of photovoltaic power stations arbitrarily and arbitrarily, the seriousness of this state itself is jeopardized and Greece’s ability and capacity to develop a stable and serious investment policy.
The above and many others have been reported and analyzed by the relevant articles and by those involved in the “wurus” that is threatened.
But even if the above is considered to be of little importance in the face of the need for public revenues and further to the rescue of the economy in general, a parameter that makes taxation unjust for investors is avoided by the public debate, so that any tax to have multiplier effects on them.
As it is known, the yields of photovoltaic power plants are not readjusted freely according to the will of the parties or market conditions or based on the total amount of annual inflation but binding to ¼ of the inflation rate reported annually. If, for example, inflation is 4%, the “locked” purchase price on the part of the system operator will be adjusted for the following year by 1%. This loss of 3% of the example over time is obviously devaluing the return on investment to a large extent since every annual impairment affects the next, and so on. Thus, the impairment of yield, as it swells annually because of the difference mentioned, creates a huge gap between the initial yield (as a percentage of the value of the investment) and the return that this same investment gives to the end of the contractual relationship, at the point where the purchasing power of the system operator ceases. This final price, always depending on the inflation rate, will end up being a “shadow” of the initial price.
However, the planned taxation at a high rate does not at all take the depreciation of returns, but it starts and ends as if it were the same and steadily profitable and profitable investment throughout the duration of the contract, a renting shop or a deposit with the bank, while as mentioned, in the final phase the return will be minimized due to the difference between inflation and revaluations, and at the end of the investment will be of zero value since it will not be it is not at all certain that the contract will be renewed upon expiry of the contract, on what terms and with what yields.
If this reflection takes into account the monetary uncertainty and the likelihood of inflation escalating due to exogenous conditions and the need to maximize the loss in absolute terms of the producer due to the difference in the adjusted price from that which would have existed if adjusted according to the overall inflation, it is immediately clear that the imposition of the tax will make it as a whole damaging to the investment.
It is obvious that it is a completely different thing to tax a freely-generated income acquisition that could have even accumulated over-yields in the past and totally to impose a horizontal tax on an investment whose profits are predetermined to have a gradual significant reduction .
In conclusion, tax thinking overturns any energy and investment policy framework, and their realization will lead to desperation for thousands of investors who believed the authorities that had been announced and charged with high long-term borrowing, expecting long-term depreciation . Instead, they will find easy targets to bleed out their yields without any serious adjustment of the losses to which these returns have been pre-empted.