The procedures and standards that will be followed by the officials of the Tax Department in relation to the sealing of businesses and the freezing of shares, in case of non-compliance of taxpayers with their tax obligations, are currently being determined. The regulations are included in the tax reform, which has been in force since the 1st of the year.
In fact, there were strong reactions to these issues from the stakeholders when the legislative package was being discussed, which led the Ministry of Finance to include safeguards. According to information from "F", there have recently been meetings with the authorities, in order to determine the procedure to be followed.
The suspension of the operation of a business and the sealing of its premises will be done for non-submission of declarations, for debts of €20 thousand. and for the non-issuance of invoices and receipts. The tax collectors prepare the relevant documents and, at the same time, determine the procedure to be followed, so that they are legally covered in case of recourse to justice by the offenders. At the same time, the actions that will be implemented by the employees of the Tax Department and the way of controlling the businesses are determined.
In addition, it is expected that the companies that will be audited will be categorized. It is worth noting that the initial plans of the Department were for the measure of sealing the companies to be implemented in the first quarter of the year, however the crisis in the Middle East and the effects faced by many companies postponed the measure for a few months later. As "F" is informed, the possibility of applying the sealing of businesses during the summer months is being considered.
Regarding the blocking of shares, the Tax Commissioner is on an open line of communication with the Registrar of Companies on how the measure will be implemented. Also, the Minister of Finance, Makis Keravnos, will have to issue a relevant decree, which will determine the procedure to be followed for the freezing of the shares.
When will businesses be sealed?
In detail, based on the legislation, the procedure for suspending the operation of the business and sealing its premises will be activated due to the non-submission of at least two tax returns or 12 tax and contribution withholding declarations or three VAT returns.
It is noted that the tax debts of €20 thousand. include debts for income tax, special defense contribution, capital gains tax and VAT. Also included is the self-taxation or certificate from the Tax Commissioner, which is final, and the deadlines for contesting have passed or the administrative and judicial procedure has been completed.
The omissions that will lead to the sealing of businesses will be when businesses do not proceed with the issuance of invoices and receipts or when they issue inaccurate invoices. The process of suspending the operation of the business will also be activated in the event that the taxpayer obstructs the conduct of an audit by officials of the Tax Department.
After 30 days
According to the procedure defined, about 30 days must pass for a business to be closed. Specifically, when the violation of the law is detected, the taxpayer will be given the first notice, with which he is required, within ten days, to comply.
If he continues the same practice, then the officials of the Department will deliver a second notice, with a deadline of another ten days. In case of non-application of the law, then a third notice is given, with a deadline of five days for the taxpayer to submit opinions.
When the final decision is taken to seal a business premises for up to 10 days, it comes into force with its publication in the Official Gazette. At the same time, the decision is served on the taxpayer, while if it is not located, then the service is done by posting it on a visible part of the business.
Then, after 10 calendar days from the service, the decision to seal the premises can be implemented, during which the police will be able to assist in the implementation of the measure. According to the procedure, at the entrance of the business that will be sealed, a tape with the name of the Tax Department is placed.
Reopening with a certificate
The cessation of the sealing will take place when compliance is achieved, with the issuance of a relevant certificate by the Registrar. In fact, if the non-compliance continues, then the Tax Commissioner has the right to seal the company's premises for another 20 days.
It should be noted that the change in the legal form or in the person who carries out the business, in the same place and with the same or similar object of work, from the time of the violation until the decision to seal the premises, does not prevent the sealing of the premises.
In addition, during the period of sealing of the premises, authorized officers can enter the premises with the assistance of the police and the affected businessman is obliged to facilitate access and can be present for the duration of the procedure.
In the meantime, in the event that a person violates the sealing of the premises, he commits a criminal offense with a fine of up to €30,000 and/or imprisonment of up to two years. According to the law, any judicial challenge to the sealing of premises does not suspend the obligation of the person and/or business to comply with their tax obligations, and the Registrar may exercise his powers to ensure tax compliance and take measures to collect the taxes due.
This is how the shares will be blocked
In relation to the collection measure for the blocking of shares, this will be activated for a tax amount due that exceeds €100,000 and is pending for more than 30 calendar days.
It should be noted that the amount due does not concern tax for which not all deadlines for objection, hierarchical appeal or appeal have passed and the judicial challenge process has not been fully completed. It also does not apply to debts for which there is an instalment plan that is paid on time and a satisfactory security (guarantee) has been provided for its payment.
The Tax Commissioner has the right to block shares that are an asset of the taxpayer who owes the tax, worth up to twice the tax due (plus interest/charges). Blocked shares cannot be transferred for as long as the commitment lasts.
The Process of Blocking Shares
The process of blocking shares will be as follows: Initially, the Registrar will send a written notice to the taxpayer, notifying his intention to block the shares.
The taxpayer may, within 30 days, submit his representations. Then, after the taxpayer's positions are examined by the Registrar, he can either ratify his decision and proceed with the blocking of the shares, or cancel the process, or proceed with a new decision.
The Registrar of Taxation then submits a note to the Registrar of Companies for the registration of a commitment on the taxpayer's shares. The taxpayer will be notified in writing of the registration of a block of shares.
At the same time, he/she has the right to apply to the Court for the annulment of the freezing registration, if he/she has already paid the tax due or if another collection measure is applied (freezing of a bank account, confiscation of movable property, memo on immovable property). If the Court cancels the freezing, the Tax Commissioner informs, within 15 days, the Registrar of Companies of the withdrawal of the freezing entry.
Also, the Registrar can make an arrangement with the taxpayer for the taxes due, so that the commitment can be lifted. Finally, the Minister of Finance, by decree to be published in the Official Gazette of the Republic, will determine details of the procedure for registering a commitment.
