FINANCE

Raising limit on protected accounts

raising-limit-on-protected-accounts

As the economy gradually reverts to normality, the Independent Authority for Public Revenue is bringing into force its action planning that provides for increased checks on and confiscations from taxpayers with debts to the state. In this context, and in order to spare thousands of enterprises the nasty surprise of the confiscation of the contents of their bank accounts, the tax administration is proceeding with the measure of increasing the amount of funds that remain protected in debtors’ bank accounts.

The measure was supposed to start applying from February 2020, but the pandemic suspended not only the implementation of that plan but also the confiscations altogether.

Now the plan that the IAPR is activating toward the reduction of the illegal economy and increasing the collection rate of overdue arrears provides for an increase in the limit of the protected account above 1,250 euros, provided the debtor adheres to the payment plan necessary for settling their debts. This practically means that state debtors will gradually be able to regain control of their bank accounts that due to debts to the state have been frozen, even concerning future inflows.