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  • Government announces series of relief measures for debtors

    The government has announced that it will submit a tax bill in order to settle new tax and insurance debts and provide relief to…

    The government has announced that it will submit a tax bill in order to settle new tax and insurance debts and provide relief to debtors. Alternate Minister of Finances Nantia Valavani [pictured center], Alternate Minister of Revenue Dimitris Mardas [pictued right] and Alternate Minister of Social Insurance Dimitris Stratoulis [pictured left] gave a press conference to provide explanations.

    The bill will aim to help about 3.5 million debtors to settle their massive debts in 100 installments, without any restrictions or limitations. It was also announced that the minimum payable installment can be less than 50 euros, depending on monthly wages. Included in the measures is the abolition of the 10%, 20% and 30% hike on outstanding debts (depending on how many years old the debts are).

    Furthermore, payments cannot exceed 20% of the taxpayer’s annual income (based on the previous financial year), or 30% if the debts relate to insurance contributions. Debts included in the settlement will be increased by 0.5% per month, without any further surcharges or penalties. In cases where it has been verified that a taxpayer has had no income in 12 months, then all forced recovery measures are suspended for a year.

    The Economic and Financial Crime Unit (SDOE) will also see its powers increased and be in the position again to carry out preventative tax and customs checks. An internal customs control service will be launched to tackle corruption and inefficiencies in combating fuel and tobacco smuggling. No tax checks can be carried out at the taxpayer’s home without the presence of a prosecutor.

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