First e-auction scheduled for tax arrears

First e-auction scheduled for tax arrears

April 27 will see the first online auction of a property over debts to the tax authorities, following the successful implementation of electronic foreclosures to recover debts to banks and individuals.

The first e-auction for debts to the state will concern an apartment at Aghia Paraskevi, northeastern Athens, which belongs to fashion designer Lakis Gavalas. In total the tax authorities have made plans for 15 online auctions, a figure that will grow, as besides properties the state will also put assets such as cars, yachts, works of art and jewelry under the hammer.

Another first on April 27 will be the fact that the state will auction off the property not based on its objective value (the taxable rate of the asset), but on its market price. If the auction fails to garner any bids in the first two sessions, the asking price could drop below the market rate.

Last year there was not a single property foreclosure by the state, while in 2016 there were 11 auctions, all conducted at courthouses. Tax administration officials argue that the state has no interest in auctioning properties, despite its commitment to the country’s creditors, as it comes last in the lenders’ payment pecking order, after employees and banks.

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