THE STATE MANAGED TO COLLECT DEBTS OF €730 million FOR TAX AND SOCIAL SECURITY - Filenews 5/4 by Eleftheria Paizanou
The Government said that the plans to settle overdue contributions to the Social Insurance Fund (SSF) and overdue debts to the Tax Department should not be the rule, nor should they be exploited by debtors. However, the events with the crisis in the Middle East preceded it.
Government sources said that such plans should give a second chance to debtors, in order to comply with their obligations, but also for the state to ensure its receipt.
After all, this is why the two previous plans for the settlement of debts to the Social Security Fund were implemented, during the period of the economic crisis in 2016 and the coronavirus pandemic, with the state putting around €100 million in its coffers, out of total debts of €225 million.
The state also received €630 million from the implementation of the overdue tax debt settlement plan. Therefore, through these plans, the state managed to collect debts in excess of €730 million, money that it would never collect and would simply either bring the offenders to justice or impose financial penalties.
Some took advantage of the plans
However, despite the increased revenues received by the state through these plans, especially the regulation implemented by the Tax Department brought to light cases of exploitation. This is because, based on the provisions of the plan, taxpayers who had debts to the Department for years, suddenly, from one moment to the next, found the money and paid off their debts in a lump sum, as a result of which they were spared interest and charges.
Following pressure from the parties, the Government, before the outbreak of the war in Iran, prepared the third plan for the settlement of overdue debts to the Social Security Fund, which was different from the other two, as the number of instalments was reduced to 48, while the improvement in economic indicators did not justify the write-off of the charges. However, geopolitical developments and the provocation of repercussions, which are becoming more intense day by day for consumers and businesses, are leading to a repetition of the overdue contribution settlement plan.
Third plan for Social Security
The third plan for the overdue debts to the Social Security Fund, which amount to €245 million, is expected to be implemented soon. The Minister of Labour, Marinos Mousiouttas, in an effort to catch up with the parties, which planned to increase the instalments to 120, proceeded to a compromise formula. In fact, he warned them that, in the event of an increase in the number of instalments, then the legislation would be repealed, with the 'bride' being paid by the citizens.
The minister proposed to the parties, and they accepted, the restoration of the provisions of the previous plans. Specifically, the number of instalments has increased to 54, while the charges, ranging from 5% to 27%, will also be written off. At the same time, those who join the new plan will receive other benefits.
Specifically, for debts that are under regulation, the additional fee imposed is not increased for periods of delay. Also, no criminal prosecution will be initiated against debtors throughout the period of their inclusion in the settlement. At the same time, criminal prosecutions against debtors will be suspended for the entire period during which they are included in the arrangement.
In the case of debtors whose debts have been adjudicated and a decree for the execution of a warrant by the Court is pending, this is suspended for the entire period of their inclusion in the arrangement. In addition, if a debtor offers services to the state for a fee, in case of debt offsetting, the competent state services will cut off 30% for debt repayment and 70% will be granted to him.
All 395 debtors participating in the latest plan, which expires in September, will be able to join the new plan. It is worth noting that the plan will be implemented immediately, while taxpayers will have four weeks to submit their applications to be included in the new regulation.
Tax debts in excess of €1 billion were also settled.
Regarding the plan for the settlement of overdue debts to the Tax Department, from 2017 to 2025 an amount of €630 million ended up in the state coffers, while the initial amount of the debt was €1.04 billion. Through the plans, more than 43,000 taxpayers participated. It should be noted that the instalments were 60 and staggered, and depending on the number of instalments agreed on, the taxpayers also received the corresponding discount from interest and charges. The smaller the number of instalments, the greater the write-off from interest and charges. For example, those who paid in one instalment did not have a single cent of additional charge.
Those who joined the tax plans managed to pay off debts to income tax, VAT, special contribution for defense, capital gains taxation, inheritance tax, property tax, special contribution and stamp fees. In fact, according to the plan, those debtors who had debts of less than €100,000 could pay off their debts in up to 54 instalments, with a minimum instalment of €50. For debts over €100,000, the instalments were increased to 60, with a minimum instalment of €1,852.
From the analysis of the data of the Tax Department, it appears that initially the state, through the arrangements made, would collect around €845 million. Along the way, more than 4,000 taxpayers were removed from the plans, who with the arrangements they made would pay an amount of €220 million. The cancelled arrangements reach €266 million, as they include interest and charges.
Recently, due to the new crisis, parties have been thinking about restoring these plans, which, as we are informed, is not so far in the planning of the government side. A competent source told "F" that the data are such that they do not justify, at this time, the reintroduction of a new plan for the tax. As it seems, any development will be after June, when the new Parliament will take over.
