Debt collection

Analysis of the €123 Billion Debt

According to lists released by the Independent Authority for Public Revenue (AADE) a few days ago, the debts of individuals and legal entities to the State and EFKA amount to €123 billion. These are debts from so-called major debtors, those who owe over €150,000 and whose payments are delayed by more than a year.

Properties with “slashed” prices starting from 8,000 euros are being auctioned by the tax authorities to collect whatever they can from the seized assets of debtors.

The Single Social Security Entity (EFKA) could collect an extra 4 billion euros from large debtors as well as from debts that increase disproportionately due to very high additional fees and surcharges, if the appropriate mechanism were in place.

The tax administration and the Social Security Debt Collection Center will be sending notices to those owing over 150,000 euros in the next few days, calling on the debtors to the state and insurance funds to settle their dues.

Our government is determined to ensure that debt collection companies operate in an ethical manner, emphasized Development Minister Kostas Skrekas

Pressure is growing on state debtors who refuse to join the debt programs of the Ministry of National Economy and Finance. From September 25, according to the timetable, the centers for certification and collection of debts (KEBEIS) will be activated. The goal is for the two debt collection centers in Athens and Thessaloniki to operate under the same rules in order to avoid past mistakes.

Only those} who have small debts, under 10,000 euros, to the social security funds can repay them, while individuals and businesses with larger debts, due to the surcharges, burden the social security system with ever greater debts.

The tax authorities are increasing the pressure on state debtors through the creation of two new Centers for Certification and Collection of Debts (KEBEIS) in Athens and Thessaloniki as it accelerates the procedures for debt certification and collection.

When the two centers are launched, the judicial departments at all tax offices will be abolished.

The government is working on a draft bill for a comprehensive tax amnesty, President Recep Tayyip Erdoğan has announced.

Accordingly, the penalties for tax and premium debts will be deleted and the opportunity to be paid in installments will be introduced.

The National Revenue Agency (NRA) collected over BGN 4 million in outstanding payments in just 7 days.

Dozens of debtors have committed to pay more than BGN 9 million for taxes and social security contributions in the next 2 weeks, the NRA announced.