Filenews 6 October 2022 - by Eleftheria Paizanou
Despite the assurances of the Ministry of Finance that it will strengthen with further tools the Tax Department to improve the tax collection capacity of the state, the much-discussed bill on the criminalization of non-payment of tax has not yet been forwarded to Parliament. A month ago, the competent ministry brought this bill back to the fore when it questioned the findings of the Audit Office in relation to debts to the Tax Department.
In fact, he said that a specific provision (which criminalizes debts) is already in place for VAT and is found to be the most effective measure for collecting taxes. "F" contacted officials, without receiving a clear answer about when this bill is expected to be submitted to Parliament. There is a prehistory on the subject, as it has been discussed since 2013. The first discussion took place during the period of the memorandum consultations. In 2020, the specific regulation concerning the criminalization of non-payment of tax was included in a multi-bill submitted to the Parliament, however, the ministry, in the face of the fear of being rejected by Parliament, removed the provision, which, it should be noted, had provoked a strong reaction from the professional sectors involved. as they thought it was affecting the market...
They increase and multiply
Despite the questioning of the data of the Audit Department by the Ministry of Finance, in relation to the debts to the tax, as it argues that these concern the period since the establishment of the Republic, a new report of the Department of Taxation shows a continuation of the increase in tax debts to the state. Specifically, in the first quarter of 2022 (January-March) debts to the state increased by €176.2 million. According to the quarterly progress report of the Tax Department, which was sent to the Parliament, by March the total amount of taxes due increased to €2.93 billion, compared to €2.76 billion. in the fourth quarter of 2021 (October-December). This year, out of the total amount of debts, the immediately payable amount for which no measures have been taken so far, amounts to €765.5 million, compared to €773.3 million. in the last quarter of last year. The element of concern concerns debts that are temporarily or permanently hampered in recovery, from €1.51 billion which was up to €1.65 billion. Within three months, the number of debtors increased by 5,728 and debts rose by €176.2 million. The average debt of each new debtor is around €37,000.
Analysis
Of the debts of €1.65 billion with a temporary or permanent impediment to recovery, in some categories there have been fluctuations. Specifically, although the number of taxpayers who have debts decreased and it was not possible to identify them, as they are either abroad or have died, the amount of debts increased by €33.3 million. In total, 9,132 taxpayers (previously 9,166) in the first quarter of the year owed taxes of €127.2 million, up from €93.9m at the end of 2021.
On the other hand, a small decrease in debts was recorded and they fell to €182.6 million. for which there are no prospects for liquid assets, to satisfy the debt. At the same time, taxpayers increased to 30,650 and debts to €574.5 million. relating to amounts not receivable after the conclusion of the bankruptcy and winding-up proceedings.
In the meantime, taxes of €170.1 million. in VAT will never be collected, as 19,353 companies have been closed and removed from the VAT Register.
COMMENT
Do elections postpone criminalization?
The criminalization of non-payment of direct taxation, such as income tax, etc., will contribute to the strengthening of the collection capacity of the Tax Department. However, despite the benefits that will arise, this bill has not yet been submitted to the Parliament. Perhaps the delay is due to the difficult economic situation in which many taxpayers find themselves, the reactions of professional bodies but probably ... the presidential elections. Let us hope that the non-tabling of the bill is not due to the government's desire not to add a hat to the inconsistent taxpayers, a few months before the elections, in order to avoid their dissatisfaction and its expression in the elections.
