Filenews 5 March 2023 - by Eleftheria Paizanos
Court measures against 5,714 taxpayers were taken in the third quarter of 2022, for tax debts of €438.4 million.
In particular, the Tax Department, from July 1 to the end of September, took court measures for 4,586 natural and legal persons, for direct tax debts of €365.1 million, as well as against 1,128 persons for non-payment of VAT of €73.2 million.
In last year's third quarter, compared to the full year of 2021, tax debts that were under court measures decreased slightly, as at that time they were €461.2 million.
Moreover, compared to 2020, the decrease is greater, as at that time court measures were taken for debts of €527.5 million. It is worth noting that criminal proceedings against legal and natural persons are made for failure to pay withholding taxes, such as VAT, special contribution for defence and for non-submission of income tax returns.
After the criminal prosecution of taxpayers, either a penalty is imposed on them during the trial and a settlement of payment is made, or an out-of-court settlement, at the same time as compliance (submission of declarations and / or creation of a schedule). At the same time, the Tax Department, in addition to the court measures it takes, has the right to place MEMO in real estate and freeze the bank accounts of taxpayers. These are the tools that the Tax Department has been implementing for the last nine years.
They put a hand on bank accounts
In the third quarter of 2022, tax debts amounting to €334.3 million were settled through the registration of a lien on real estate. According to the quarterly progress report of the Tax Department on the status of the immediately due amounts, sent to the Parliament, for 5,889 taxpayers their property has been frozen for debts of €333.2 million.
Of the total debts for which MEMO has been set, the largest amount and specifically €313.3 million. relate to debts for direct taxation and €19.8 million. for debts to VAT. Compared to 2021, the debts for which MEMO entered have increased. Specifically, in the context of the collection measures, a MEMO was placed on the real estate of taxpayers for tax debts amounting to €187 million. Moreover, by the end of October last year, €1.1 million had been seized. from the bank accounts of several inconsistent taxpayers. Meanwhile, in 2021, the Tax Department put a hand on bank accounts, for an amount of €1.3 million. It is noted that the collection amounts without the adoption of court measures and before the seizure of bank accounts were €899.6 million.
With instalments over 3,500 people
Tax debts of €107.3 million they are under settlement by instalments and are monitored. Out of the total debts settled, €69.9 million have been included in the arrears settlement plan. According to the analysis of the data of the Tax Department, 3,516 taxpayers have entered into an agreement to repay debts with instalments in VAT amounting to €90.8 million. In addition, another 281 taxpayers will pay in instalments for direct tax debts of €16.5 million.
Debts to the state reached €3.1 billion
In the meantime, despite the court measures and the use of the collection measures, at €3.11 billion. reached the amount of debts to the state. Of the total amount of debts, the immediately due amount, for which no action has been taken so far, amounts to €898.5 million. In fact, the Tax Department recognizes that much of the debts are difficult to recover. The average debt for each taxpayer reaches €12.7 million.
According to the data of the Tax Department, more than 50% of those owed have a personal or permanent impediment to collection. That is, for debts of €1.8 billion. They are extremely difficult to collect.
Debt mapping and collection problems
In detail, taxes over €179.2 million for VAT debts will never be collected. According to the report, 19,771 persons, mainly legal and self-employed, owe this amount, but it is competently judged that there is great difficulty in collecting it, due to the fact that the debtors have been cancelled from the VAT Register. That is, these debtors do not exist as legal entities, as businesses have been shut down, or for some other reason.
Also, for tax debts of €602 million. there is a problem in the collection due to an appeal or objection to the Minister of Finance and the Supreme Court. They concern debts of €547.2 million in direct taxation and €54.8 million in VAT.
In addition, another 36,402 taxpayers have debts of €715.1 million. They relate to amounts for which there is ongoing winding-up proceedings or bankruptcy proceedings for a natural person. At the same time, according to the data of the Tax Department, a total of 8,994 taxpayers owe €93.9 million in taxes.
The Department has made many efforts, without identifying the debtors, as they are abroad or have died and the enforcement of measures has failed and there are no realistic prospects for repayment.
Of the total debtors, 8,941 owe direct tax of €116.9 million. and 53 others owe €3.1m VAT. In addition, another 2,034 taxpayers have debts of €183.2 million. For these debts there are no prospects for liquid assets, sources of income, access to lending or other means to satisfy the debt. It should be noted that an amount of €468.1 million it is deducted from debts due to double counting between categories of taxes.
2021 data on debts
2021 had closed with the amount of tax debts reaching €2.76 billion. The amount of debt immediately due before the collection measures in December 2021 was €1. €52 billion, including interest and charges, compared to €1.71 billion. that occurred during December 2020. The total taxes that were under collection measures in December 2021 was €696. 8 million compared to €729.5 million. in December 2020. The net recoverable amount of taxes due before the implementation of the bank account attachment measure in December 2021 was €774. 6 million compared to €911. 6 million which was in 2020. The net immediately chargeable tax amount without collection measures on 31/12/2021 at €773. 34 million
