State to woo and monitor debtors

The state could collect up to 1.2 billion euros if all those who dropped out of their tax debt arrangements apply for reintegration. For those who do apply, there will be a single monitoring authority.

According to sources from the Ministry of National Economy and Finance, the revival of the arrangements (of 72, 100 and 120 installments) concerns 230,000 debtors who have not stuck to the arrangement to which they were subject. If they decide that the new scheme is in their favor, they will have to pay the missed installments in one lump sum and a new payment plan will be issued by the Independent Authority for Public Revenue (AADE) for the remaining installments.

The goal now of the tax administration and the ministry is that the arrangements are controlled centrally with the aim of not being “lost” by mistake or by a slight delay in the payment of the installment. At the same time, all debtors will be informed by the tax administration about their obligations, both those arranged and those that are expected during the year.

Ministry sources say the entire process will be implemented by a central online system of standardized monitoring by the above obligations, without human intervention. There will also be an early warning mechanism to be activated ahead of an imminent forfeiting of obligations.

All conditions for compliance with the payment plan will be monitored digitally and centrally. If the taxpayer does not comply with any of the conditions, they will receive compliance notices to settle the backlog they have created in a reasonable time.⁠ If they do not, the declaration of forfeiture will be done by a centralized process and not by a local tax office director.

Until today, for an individual or an enterprise not to miss their plan, the head of the tax office would have to check at all times not only if each plan is up to date, but also if all returns have been submitted and no new dues have been created, otherwise the taxpayer would lose their favorable arrangement.