FINANCE

Ultimatum for state debtors

Ultimatum for state debtors

Some 200,000 businesses and individuals with debts to the state have been given two options: Either rejoin the 72- or 120-installment arrangements, or face confiscations.

In the coming days, the tax administration will send emails to those who failed to keep up with their 120-tranche and 72-tranche arrangements for debts since the lockdowns. They will be asked to apply for integration into the new arrangements and repay their debts to the state. Otherwise, coercive measures will be taken, which include confiscation of assets, freezing of bank accounts and confiscation of salaries and rent, as the case may be.

According to information, the taxpayers who have failed to comply with the standard 12-installment arrangement amount to 190,000 and are eligible to rejoin, while some 10,000 debtors have missed the pandemic arrangement. At the moment, debts amounting to 2.4 billion euros are being serviced through the standard arrangement, another €2.1 billion via the 120-installment arrangement, while in the special arrangement for the pandemic debts the amount that is active comes to €1 billion.

Those who missed their 72/120-tranche arrangements by February 1, 2023 have the chance to rejoin before July 31, 2023 if they pay two installments. Only in this way will all the benefits of the settings be revived, such as the release of bank accounts for the 120-installment arrangements. Essentially, the tax office not only gives them the right to rejoin, but also gives them more than three months to do so.

However, debtors re-entering the arrangement should have no new dues. If they have any unpaid taxes, in order to be able to rejoin the old arrangements, they must include the unarranged debts in the permanent arrangement of 24 or 48 installments within one month of the validation of the revival.

The new arrangement of 36 or 72 installments applies to those who on November 1, 2021 had no overdue or unregulated debts, while at the same time paying all the installments of the arrangements of 120 or 72 installments, if they had such settlement plans.

Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.