The regulation of 120 instalments for debts to the tax authorities and insurance funds

Tax and social security debts have always been a constant source of anxiety for Greek citizens. Especially today, when the prolonged financial crisis has brought thousands of households into desperation due to accumulated debts, with 4 out of 10 Greeks unable to cope. For the tax authorities alone, it is worth noting that the top 79 debtors on the list owe more than 34 billion euros!

In order to better address this situation, the Government recently established the operation of the electronic platform for the settlement of all debts to the
Public up to 120 monthly instalments. This is an important procedure, which aims to provide significant assistance to the Greek insured and taxpayer.
The electronic platform of the Independent Municipal Revenue Authority, which was launched on 20 May 2019, allows taxpayers to settle their debts in up to 120 instalments, with a deadline for submitting applications up to 28 June 2019 (so far no extension date has been given, although it is considered likely due to the upcoming elections).

The application must be submitted electronically through the taxisnet application, while in case there is no online support, the competent service for receiving applications is the respective Tax Office or the Service of the Independent Public Revenue Authority. Each case is examined individually and the taxpayer is asked to record all his debts, both principal and surcharges. The statistics are indicative and reveal another reality. The figures show that 87.5% of debtors owe up to €5,000. This percentage rises to 92.6% for an amount of debt of up to EUR 10 000. This means that the vast majority of debts are in the range of €5,000 to €10,000. In this way, it will be possible to examine each case individually and to settle the debt with the appropriate number of instalments.

Particular attention should be paid to the debts that can be subject to the arrangement. The Ministerial Decision, which is signed by the Deputy Minister of Finance Ekaterini Papanastasiou and the Governor of the Independent Authority, stipulates that this regulation applies only to confirmed and overdue debts to the Audit Centres, the Operational Collection Unit (EMEIS), the Tax Offices and the Customs. It should be noted that in order to qualify, a debt must be overdue by 31 December 2018. If there is a loss of application because the above conditions are not met, then the debtor has the right to reapply. As stated in Article 5 of the Decision, if the debtor has not paid the amount of the late payment charge or, in general, small amounts or in cases where it is proven that the non-payment of an instalment or part of an instalment is not due to his fault but is the responsibility of a third party, the arrangement is not lost, provided that the debtor pays the amount after being informed by the competent body of the compliance with the terms of the arrangement and the loss of the arrangement within 45 working days.

In parallel with the aforementioned procedure, the operation of the platform for the settlement of debts to the social security funds in 120 instalments is also in progress, in the context of Law 4611/2019 on the Settlement of Debts to Social Security Institutions. It is an option offered to the insured person with a view to returning to the regular insurance scheme. More specifically, the platform is addressed to natural persons, self-employed, self-employed and farmers, with or without a professional activity, even those who have submitted a pension request and it is pending! It should be noted that the outstanding balance of an existing arrangement can be included in the amount of the arrangement, while debts to ETEAEP can also be included. In this case, rights and benefits under the previous arrangement will be lost. In addition, debts for which a court decision is pending in accordance with the law may also be included in the scheme. 3869/2010, provided that the final judgment of the court has not been issued. The procedure follows the following stages: first, a request for the determination-recalculation of debts is submitted on the electronic platform posted on the EFKA website (www.efka.gov.gr) and second, a request for debt adjustment is submitted on the link of the KEAO on the EFKA website.

The two procedures mentioned above are a very positive step and constitute a significant contribution to the effort to consolidate the financial situation of a large number of public debtors in our country.

Stratis D. Nicolae
Lawyer at the Supreme Court LL.M
Ombudsman Accredited to the Ministry of Justice
Data Protection Officer (D.P.O)