Hint of future debts can spur tax officials to action
Debtors to the state should have a reason to worry. Tax authorities are not only ready to pounce regarding existing debt, by freezing bank accounts and garnishing wages, but will also move against people with the potential not to pay their direct or indirect taxes.
The digital systems that the Independent Authority on Public Revenue (AADE) uses to connect to bank accounts and to monitor spending patterns based on usage of credit or debit cards raise alarms in both cases. And the connections extend abroad, with the cooperation of other tax authorities. AADE officials have been warned to act promptly so that debtors do not have the time to move money from their bank accounts or sell assets.
At this point, debts to the state exceed €107 billion and recovering even a part would be a boon to public coffers. According to AADE data, garnishings and bank account freezings stand at 186 daily. But the number of households and businesses under threat of such action is much larger – 2,134,014 to be exact.
