Filenews 6 December 2025 - by Eleftheria Paizanou
It seems that the sealing of businesses in case of tax debts, non-submission of tax returns and non-issuance of receipts will easily cross the obstacle of the Parliament.
The safeguards that the Tax Department has included in the bills, despite the reservations of some affected bodies, satisfy the majority of the parties, which, however, asked for some changes for greater clarity in the law. The competent department is considering the possibility that the measure concerning the non-submission of tax returns will be implemented from 2027, so that those affected have time to submit their income returns. The changes being considered include the sending of a double-registered letter by the Tax Department and, in addition to the publication of the companies that will be stamped in the Official Gazette of the Republic, the posting of the relevant announcement.
According to the bill, the process that will precede the sealing includes three notices to the taxpayer, so that he has the opportunity to comply with his obligations or proceed with a settlement with the Tax Commissioner before the sealing of the premises. The tax debts for which the businesses will be sealed should exceed €20,000.
Speaking before the Parliamentary Committee on Finance, the Commissioner of Taxation, Sotiris Markides, stated that with the inclusion of safeguards, businesses will not be affected, as they will have time to comply. He added that the measure will contribute to tax compliance and assured that, if necessary, changes will be made in the future. A representative of the Legal Service said that the provision of the bill is sufficiently structured, since three warnings will be given to taxpayers. He also noted that the model applied in Greece was examined, pointing out that it is a measure to strengthen tax compliance.
Provident Funds
Regarding the taxation of the investment activities of the provident funds, the Commissioner of Provident Funds expressed his disagreement. As he said, pension plans have a social character and work in addition to social insurance. At the same time, he noted that the investments of pension plans cannot be considered of a commercial nature. "The investments of the funds, the revenues return to the funds," he added.
According to the Commissioner of Provident Funds, instead of taxing the funds, insurance valves should be included that cover their professional activities. In conclusion, he said that incentives and tax exemptions should be given to the funds.
For his part, the Tax Commissioner noted that, if the State Aid Control Commissioner decides that the non-taxation of the investment activities of the funds is not considered state aid, then the measure will be withdrawn.
