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Settlement of taxes due confirmed by 1st October 2014
The Circular 1245/20.11.2014, which modifies Circular 1236/07.11.2014, was released, regulating the settlement of tax liabilities due coming from taxes imposed until October 1, 2014.
Debt falling in the regulation
A. Confirmed and overdue tax liabilities, not previously settled in accordance with the former legal framework of L. 4152/2013, are mandatorily subject to the new settlement.
B. Optionally, arrears and confirmed tax burdens, under administrative or judicial suspension until the date of application, may be also included in the debt settlement.
Prerequisites for qualification
The key prerequisites for the inclusion in the debt settlement are:
1. The amount due shall not exceed 1,000,000€.
2. The debtor shall have already submitted all his tax returns. This fact is confirmed by a Solemn Declaration filed by the debtor during request for the settlement.
The interest rate imposed on the amount under the settlement is 4.56%, without any additional charge from surcharges and fines.
The minimum monthly installment is 50€.
If the total amount due does not exceed 15,000 €, the settlement may provide over 72 monthly installments up to 100.
Procedures and payments
The qualification application is submitted via TaxisNet, the online platform of the Ministry of Finance. Exceptionally, in case of technical failure, the application form is submitted to the competent Tax Office.
The payment of installments is carried out by collection agencies (banks etc.) using a unique payment ID.
It is noted that the first installment shall be paid within 3 working days from the date of the application, while the deposit of the remaining installments is carried out until the last working day of the each following month.
When the debt settlement ceases to be effective
The benefits of the settlement cease to be effective and the remainder amount due shall be paid immediately, if the debtor:
- Is not complied with the Tax Authorities during the submission of the petition or throughout the duration of the arrangement.
- Does not pay in time one installment in the first six-month period.
- Has declared inaccurate tax data in order to enter the settlement.
From the other hand, the settlement remains effective if after 6 months the debtor:
- Does not pay on time up to two installments per year.
- Does not pay in time one installment per year, for a period of up to two months.
To sum up, this measure is expected to relieve many individuals from high amounts of overdue debts. Nevertheless, the fact that several taxes, such as property tax, were not included in the regulation does not limit to the maximum extent the financial problems facing many indebted households.