An additional EUR 10 billion overdue tax debtwill throw in the “bucket” of unacceptable collection by the end of 2025, The Independent Public Revenue Authority (AADE), as there is virtually no chance of being collected.
These are debts that are simply included in the list of private debt to the State, altering the actual picture of the debt and preventing the Treasury’s mechanism from focusing on debts that are considered to be collected, according to ERTnews.
These cases have been pending for decades, without a realistic possibility of recovery, and concern: Bankruptcy, deceased without heirs and natural persons without assets.
Of the total of 108.4 billion euros of overdue debts to the State, about € 26.3 billion have already been registered as non -collectives.
According to the Code of Public Revenue Collection (KEDE) to designate a debt as an unacceptable collection, all the available means of seeking assets of the debtor and co -owned persons must have been exhausted.
Still:
- A property or claims to third parties should not be found.
- Must have been submitted a criminal prosecution application (if required)
- To have objective inability to recover.
Indeed, if even if there is any assets, the designation of a “unacceptable collection” for the debt remains if their total value is less than 5% of the basic debt and does not exceed EUR 100,000 for real estate and € 30,000 for mobile property.
Including a debt into the special book of unpaid collection requires specific administrative operations depending on its amount:
- For debts of less than 300,000 euros: Decision of the Head of the DOU or Customs Service.
- For debts of 300,000 to EUR 3 million: Decision of the Governor of AADE, on the recommendation of the competent Heads.
- For debts of more than EUR 3 million: Decision of the Governor upon recommendation of the Operational Unit of Collection.
It is worth noting that the designation of a “unacceptable collection” does not lead to debt write -off. For 10 years since the registration, the State reserves the right to monitor, if property is identified, the debt revives and can be sought. For example, in the event of a transfer of immovable property or disclosure of new income, AADE may seize or set off.
However, after the entry:
- The limitation of the debt is suspended
- Not granted tax certificates to the debtor
- Binding bank and investment accounts as well as lockers
- The State reserves the right to set off or collection if the data is changed.
- The debt may be re -characterized as a collection if later assets are identified.