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How debtors will be reunited with contracts they have lost

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How debtors will be reunited with contracts they have lost

Plan to return to dose settings of 100-120even ad hoc, debts created during the pandemic are handled by the finance and labor ministries.

According to the first data collected by the services, more than 800,000 borrowers have lost their arrangements for various reasons. According to the top manager, there are times when financial weakness is revealed. That is, for example, the taxpayer for the payment of ENFIA and income tax left the regulated contribution he had unpaid. Such cases are reviewed by the Treasury Department to decide who will be given a second chance.

AADE services are reviewing each case on a case-by-case basis and should provide the political leadership with detailed tables of out-of-arrangement debtors in the coming days. Final decisions on restoring the old arrangements are expected by the end of February, while financial staff is not considering initiating a new debt agreement.

Taxpayers reverting to treaties they lost because they stopped paying monthly fees will incur a “penalty”, with one of the scenarios involving payment in two or more installments of old arrangements lost after a new application for reunification was submitted. The rest of the missing parts will be added at the end of the restored arrangement.

To date, more than 4 million taxpayers (individuals and legal entities) have debts to the tax office, of which 3.8 million or 9 out of 10 have overdue debts not exceeding 10,000 euros. In fact, over the past year there has been an increase in the number of small debtors.

In particular, it is planned to revive the following rules:

It is expected that the final decisions on the revival of the old agreements will be made by the end of February.

1. Set 36 or 72 Pandemic Debt Payments: The regulation applies to debts to tax authorities and insurance funds that were confirmed between March 1, 2020 and July 31, 2021, which are paid up to 36 interest-free monthly payments or up to 72 payments with an interest rate of 2.5. %. Individuals and legal entities that have been described as affected by the pandemic can join the agreement. The minimum monthly payment was €30 for debts up to €1,000 and €50 for larger debts.

2. Setting 100 or 120 dosesA: Renewal of old 100 or 120 payment agreements will be subject to the terms of the original agreement for the remainder. Missed doses get stuck at the end of the setup. For example, if the debtor has not paid for 12 months, the 120 payment arrangement will be extended for another 12 months. It is noted that more than 600,000 individuals and legal entities were included in the 120 installment plan implemented by the government, but along the way, many lost it for various reasons.

According to the tax administration, €5.3 billion worth of debts were included in some of the arrangements (100 installments, 120 installments, pandemic debts up to 72 installments, and a fixed MoF arrangement of 24-48 installments). Of the regulated balance, 53.5% are individuals and the remaining 46.5% are legal entities. 36.4% of the regulated balance (€1.932 billion) is held by debtors with a principal debt of EUR 5,001–50,000, and 26.2% of the regulated balance is held by debtors with a principal debt of EUR 50,001–300,000.

Author: Prokopis Hadjinikolou

Source: Kathimerini

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