ECONOMY

New payment plan for overdue taxes could see state confiscating deposits

Businesses and individuals that owe tax or social security contributions could have their deposits seized under legislation passed by Parliament on Sunday.

As part of the multi-bill approved by the majority of MPs, the government introduced a new payment plan for debtors to the state.

Companies owing between 50,000 and 75,000 euros will be allowed to pay off their debts in 12 instalments. Those owing more than 75,000 euros will be able to pay in 48 tranches.

Individuals owing up to 5,000 euros will be allowed 48 instalments as well, while in some cases they could be given 100 monthly tranches.

However, in order to qualify for the payment plan, applicants will have to submit paperwork that includes bank data. If tax inspectors find that firms or individuals have the money to pay off their debt to the state, that amount will be seized from their accounts.