In the New Year, increased activity by the Greek tax authorities is expected after a decline in tax revenues, especially in the collection of VAT and special excise duties.
At the same time, the overdue tax debts to the state have increased by about one billion euros, while the Ministry of Finance assumes that part of the outstanding debts can be compensated by the increased revenues by the end of the year (last instalment of income tax, motor vehicle tax, instalments from previous deferrals, refund of VAT, etc.)
The new regulations are expected to come into force immediately after Christmas. A particularly drastic measure is the confiscation of property by the authorities without prior notice (partial seizure of deposits and wages). In addition, the new draft law also provides for new fines for tax evaders and tax debtors.
The Ministry of Finance is continuing the race against time to be able to collect more than 1.5 billion euros from motor vehicle tax, the rate of the special tax on real estate and the last partial payment of income tax in the coming days and weeks.
The new Tax Act provides for the following measures, among others:
- Fine of 10% of income and real estate tax in case of delayed payment of up to 6 months. In the event of a one-year delay in the payment of the tax, the fine increases to 20%, and in the event of a two-year delay to 30%. In addition to the above-mentioned fines, interest is also to be imposed on debtors, which is to be determined by decision of the Minister of Finance.
- Unannounced seizures of deposits, wages or rental income for debts to the Greek state. Prior reminders are only provided for the seizure of real estate.
- If the tax debts are not settled, the debtors will be served with a garnishment order after three months, with the foreclosure to take place one year later. To avoid fines, debtors must settle
- The new law explicitly states that no exceptions will be provided for in relation to auctions of the 1st residence for debts owed to municipalities, tax authorities or insurance carriers.
debts.
At the same time, the Ministry of Finance has introduced a modification of the procedure with regard to payment receipts. The new system is due to come into force from 2014 and provides for the following:
All taxpayers must accumulate receipts equal to 10% of their annual income. The maximum annual amount that citizens have to prove is €10,500, while salaried employees and pensioners are obliged to accumulate payment receipts in order to be able to achieve a tax reduction of up to €2,100. Freelancers, farmers and pensioners, on the other hand, are not entitled to a tax reduction; however, if they do not reach the minimum amount of supporting documents, a special payment of 22% will be levied on the missing difference.
Here is an example of the new system of payment receipts for the year 2014:
Married employee with 2 children and an annual income of €20,000:
-Minimum amount from receipts: €2,000 (€20,000 x 10%).
If he accumulates receipts in the amount of €1,500, he will be subject to a special payment of €110 (22% of the difference to the €500).
