Overdue debts To the State of 10 billion euros, the Independent Public Revenue Authority will be described as a “unacceptable collection” this year (AADE), in order to clarify the landscape and focus on debts with real repayment opportunities.
These are essentially overdue debts, for which any forced measure and way to get collected has been exhausted, but there has been no effect. By decision of AADE Governor George Pitsilis, the monetary limits and responsibilities for the designation of a debt as an unsubstantiated recovery in order to ensure the proper and effective operation of the AADE services that are responsible (the Heads and the Commander) for the designation of the debt.
These debts are not going to be permanently deleted. They will enter special books for 10 years, as provided by the Code of Public Revenue Collection (KEDE) and applies when the debtor does not have real estate or other assets, cannot be brought or already prosecuted, or at least 10 years have passed since the clearance of a company.
During the decade, the debtor cannot receive tax information or transfer property, while his bank accounts and lockers may be committed. If new data emerges, the State reserves the right to proceed with collection.
According to figures processed by the State Budget Office in Parliament, the total overdue balance at the end of October 2024 amounted to EUR 108.5 billion, increased by EUR 2.4 billion compared to October 2023.
It is noted that 24.3% of the total overdue balance, which corresponds to EUR 26.3 billion, relates to debts characterized as unpaid recovery.
Also, most of the total “red” debts come from natural and legal entities with exorbitant and practical outstanding debts exceeding EUR 1 million, resulting in the collection efforts to focus on those who have the opportunity to pay.
90.5% of debtors are raised in debts of up to 10,000 euros with their total overdue balance reaching 3.6% of total debts, while in debts of over € 1 million, 76.5% of the total overdue balance is raised and only 0.2% of debtors.
According to the Public Revenue Collection Code, a debt is characterized as “unacceptable collection” when:
- Investigations have been completed on the basis of the appropriate available electronic media in the tax administration in order to determine the non -existence of the debtor’s assets and their co -owners or claims against third parties.
- The completion of the enforcement procedure on the debtor’s mobile, real estate or claims by accelerating the State or third parties or by the liquidation procedure and the cessation of bankruptcy work, if it is poor, has been found.
- A special auditor of the competent tax or customs authority has been carried out, which certifies, on the basis of a specially reasoned audit report, that the conditions of the previous cases are fulfilled and that it is objectively impossible to collect the debts.
- An application for criminal prosecution has been filed, in whatever cases the legal conditions are met or it is not possible to submit it.
- For debt of companies under state control and which are under liquidation or bankruptcy, the State is required to announce the procedures in these procedures.