ECONOMY

Taxpayers, companies scramble to settle accounts fearing haircut

Taxpayers, companies scramble to settle accounts fearing haircut
Households and enterprises have responded to widespread fears of a haircut on bank deposits by paying off taxes, loans, salaries and other obligations as well as breaking large deposits down into smaller accounts.

With bank branches remaining closed, Internet banking transactions were up noticeably, with the majority of enterprises using web services to settle various obligations. Households went digging for forgotten e-banking passwords and activated their online accounts.

The number of people to have made an e-banking transaction in the last 12 months comes to 1.6-1.7 million, but twice as many had registered to do so. A great number of registered clients who had not used their online password for a long time contacted bank call centers to reactivate their electronic accounts.

Rumors of a haircut on deposits have led some households and enterprises to pay off their tax debts and loans over fears that their deposits will be devalued. More than a few salary workers, self-employed professionals and entrepreneurs have opted to pay their obligations in an effort to protect their deposits indirectly, figuring that their debts would remain intact even in the case of a haircut. Others still have broken down the amount held in one account into two or more at the same or other banks too.

Besides paying off loans, many enterprises have been settling accounts with suppliers or customers and some have gone as far as paying their employees upfront for the next few months. 

Notably, a number of corporations have paid off their value-added tax or income tax dues for June in lump sums.

Major accounting offices report that entrepreneurs are opting to for pay their taxes to the state and lightening their bank accounts in case banks require recapitalization and perform a so-called bail-in. Two weeks before the extended deadline for the submission of income tax statements by enterprises, most have already paid their income tax via e-banking.

For their part, many taxpayers have started submitting their tax declarations in the process that ends on July 27. Up until yesterday, 2.6 million statements had been submitted, with some 3.4 million declarations left for the completion of the process. Taxpayers may also pay their taxes at tax offices.

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