Debts to taxes: The nightmare of the new generation of overdue debts emerges

The escalation of inflation that is shrinking the incomes of households and businesses brings back the nightmare of a new generation of overdue debts to the Tax Office. Data from the Independent Authority of State Proceeds (AADE) showed that in January 2022, the taxes that were left unpaid grew by 803 million euros, with the result that the total overdue balance was found to be a hair away from 113 billion euros. At the same time there was an increase in the number of debtors to 4,049,913 people with the largest increase being recorded in taxpayers who owe from 50 to 500 euros, ie low income citizens who find it difficult to get by.

With the arsenal of facilities through arrangements for the repayment of taxes in more and smaller installments has been exhausted, the difficulties are ahead for the taxpayers as apart from the 36 or 72 installments of the debts of the pandemic that are already “running”, the bills for this year’s ENFIA property tax and the income tax and from the summer the debts of the repayable covid aid will be” thawed ” and will now be able to be repaid in 96 interest-free installments. It is worth noting, however, that the increase in the repayment installments of the repayable debts from 60 to 96 decided by the government gives a “breath” of liquidity to about 700,000 companies and professionals.

Big debtors and “small fry”

The data of AADE which were processed by the State Budget Office in the Parliament show that 80% of the total debt, ie more than 90 billion euros out of 113 billion euros comes from 8,825 taxpayers who each owe more than 1 million euros and represent only 0.2% of total debtors. In fact, 5,378 companies have “red” tax debts of 66 billion euros.

An “x-ray” of debts and debtors

Regarding the number of debtors depending on the amount of debt and the main sources of debt increase in January 2022, the following are recorded:

– 4,049,913 debtors appear with debts to the Tax Office. Of these, 1,989,167 are threatened with foreclosures and seizures of assets, while for 1,335,786 debtors compulsory collection measures have been taken.

– 689,697 taxpayers have up to 50 euros of debt. The total debt of this category amounts to 12.3 million. euro.

– 1,497,308 taxpayers owe 50-500 euros and represent 37% of the debtors and owe 0.3% of the total debt. In this category is found the largest increase in their number compared to the corresponding period of the previous year as their number increased by 59,061 debtors. The specific debtors owe a total of 313.7 million euros.

– 1,535,000 taxpayers have debts from 500-10,000 euros, and their total debt is 3.673 billion euros.

– 278,740 taxpayers owe from 10,000-100,000 euros. Within a year these increased by 8,589 people with their total debt amounting to 7.769 billion. euro.

– 40,203 owe from 100,000 to 1,000,000 euros with their number increasing by 1,795 people. They owe a total of 10,885 billion to the Tax Office. euro.

– More than 1,000,000 euros are owed 8,825 with an increase of their number by 336 people and their total debt to be 90,305 billion. euro. In this debt category is collected 80% of the total overdue balance and only 0.2% of debtors. 73% of the debts come from legal entities, with their overdue balance reaching 66 billion euros at the end of January 2022. Respectively, the number of legal entities that owe more than 1 million euros amounted to 5,378, as it increased on an annual basis by 193 legal entities.

When are seizures activated

Those who are late in repaying debts to the Tax Office are faced with strict enforcement measures that include, among other things, seizures:

– Bank deposit accounts with the exception of one and only account for which an unseized limit of up to 1,250 euros applies.

– Salaries, pensions, lump sums, allowances, rental income, etc. Especially for amounts of salaries, pensions and insurance benefits, the seizure in the hands of the employer or the insurance fund of 50% on the department over 1,000 and up to 1,500 euros is allowed, while from amounts over 1,500 euros per month the seizure in the hands is allowed of the employer or the insurance fund of the total excess of 1,500 euros.

– Real estate even if it is the first residence as well as cars and yachts in case the debt exceeds 500 euros.

In addition to the seizures, those taxpayers owe to the State more than 100,000 euros and have been late in paying for more than 4 months are at risk of being prosecuted and punished with imprisonment that can exceed 3 years.