Debtors given another chance

Debtors given another chance

Yet another installment scheme for people with tax debts to the state is in the works, and Finance Minister Christos Staikouras is ready to send the final draft of the bill to Greece’s creditors for their comments.

The bill improves on existing legislation, and would allow people and companies to pay back taxes in up to 24 instalments, up from the current 12, but not as many as the 36 that an earlier draft, amended under the creditors’ pressure, called for.

Payment of dues in the form of so-called “extraordinary” taxes, such as inheritance tax, is seen being made in up to 48 installments. Whether debtors will be provided this facility will now depend on their income and bank balance, which were not taken into account before.

The government believes the creditors will be receptive to the measure, even though they grumbled about the facility provided to pay debts to social security funds in up to 120 installments. It says the creditors understand that 12 installments were too few and contributed to the rise in owed back taxes to 104 billion euros.

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