BUSINESS

New regulation calls for social security debts to be deducted from tax returns

In a bid to cover the shortfall in the country's cash-strapped social security providers, the Labor Ministry drafted an new regulation that foresees overdue benefit payments being deducted from tax returns, the state-run Athens-Macedonia News Agency (AMNA) said on Tuesday.

If the regulation is approved, it will pertain to debtors who have not reached a settlement with social security providers and will mean that their debts will be deducted from their expected returns in tax and value-added tax.

Meanwhile, the AMNA said that the debts of some 270,000 businesses and individuals insured with OAEE, the fund for self-employed professionals, amounting to around 5 billion euros, will be managed by the newly established Center for the Collection of Social Security Arrears (KEAO).

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