Filenews 18 November 2022 - by Eleftheria Paizanou
EDEK pulls out of the drawers the plan to regulate tax debts to the state by instalments, even though it has been said many times in Parliament that the implementation of such plans cultivates a culture of inconsistency among taxpayers.
However, EDEK considers that due to the Ukrainian situation and consequently the increase in inflation, many taxpayers are in a difficult position to fulfil their obligations, so it is necessary, it argues, to approve arrangements to facilitate those who face (or invoke) financial difficulties.
Just seven months after the expiry of the last arrears facility plan, implemented for companies whose turnover had fallen due to the effects caused by the coronavirus pandemic, EDEK is reintroducing a new plan. The bill was submitted yesterday to the Plenary Session of the Parliament by the MP of the party Elias Myrianthous, which seeks to start the submission of applications for inclusion in the plan from January 1 to November 30, 2023.
With the new legislative effort, as in previous times, debts will be settled until 2015, while, as we were told by the report, the arrangement for debts that will arise until the tax year 2021 will be extended. It is worth noting that taxpayers in order to join a repayment plan of their debts must first submit their tax returns pending by June 30, 2023.
The plan was first implemented in July 2015 and was quite generous, as the fewer instalments the taxpayer paid, the greater the deductions he received. After all, that is why its application has been extended beyond six years. It is recalled that, depending on the installments paid by the taxpayer, interest and charges were written off accordingly. For example, those who paid their debts in a lump sum, i.e. in one instalment, were relieved of 95% of interest and charges. The plan to regulate overdue tax debts included arrears for income tax, VAT, property tax, special contribution for defenxe, capital gains tax and inheritance tax. As the EDEK MP argues, the reinstatement of the plan is necessary due to the pandemic and the Russian invasion of Ukraine, which led to the energy crisis and inflation. According to Mr. Myrianthous, due to these data, many taxpayers did not have the opportunity and time to take advantage of the legislation, as they were included in the special government support plans and were unable to pay their instalments.
Charges of €185 million were written off.
From 2017 until April this year, through the arrears repayment plans, around 40,000 had made. arrangements, from which taxpayers benefited from a write-off of interest and charges of around €185 million. In total, the state will receive a total amount of €566.2 million. However, before the write-off of interest and charges, the tax debts included in the scheme were €705.1 million. However, it is striking that in the last plan implemented for companies that had a decrease in turnover due to the pandemic, the majority of debts were repaid in one instalment. According to data from the Tax Department, 84% of the arrangements for debts created in 2021 were repaid in one instalment, and debtors took advantage of the maximum of interest and charges exemption...
POINT OF VIEW
Wrong messages are being sent
As in the case of the freezing of foreclosures, so with the reinstatement of the plan for the regulation of overdue tax debts, the Parliament unwittingly cultivates a culture of inconsistency. In its effort to help and support those in need, it sends the wrong signals. This is shown by the data of the Tax Department, according to which many inconsistent taxpayers... They suddenly found money and paid off their debts in one instalment, effectively saving 95% of the charges. I understand that due to inflation, most of us hardly make a month, while 2023 is expected to be more difficult, however, we must be consistent with our obligations to the state.
