ECONOMY

Companies can enter new payment plan of 120 tranches

Companies can enter new payment plan of 120 tranches

The program for settling tax debts in up to 120 tranches was on Thursday expanded to companies with gross revenues of up to 2 million euros per year, to the detriment of the out-of-court settlement mechanism.

The government issued a legislative act that implements Prime Minister Alexis Tsipras’s election pledge, although this could have been done from the original submission of the 120-tranche regulation in May: The government had then opted to propose a maximum number of 36 installments.

However, in view of the general election on July 7, the government is now giving companies that joined the 36-installment scheme the right to shift to the 120-tranche program, for debts confirmed up to December 31, 2018. As a result the extrajudicial mechanism is effectively made obsolete and companies can enter the new mechanism even if they are not sustainable.