Debtor

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.

The Ministry of National Economy and Finance and the tax administration are providing 215,000 state debtors with the possibility of rejoining the arrangements they have dropped out of, as long as they hurry up to pay all the outstanding overdue installments of their payment plans by April 29.

The Single Social Security Entity (EFKA) started sending 281,000 email messages to freelancers, self-employed professionals and farmers with debts of less than 2,000 euros each, in order for them to pay off or at least arrange their debts and maintain their insurance capacity by the end of the month.

The tax administration intends to reward debtors who are consistent with the payment of dues to the state, and to establish new criteria and simpler procedures for granting evidence of tax awareness and debt certificates.

A new boost is expected for the out-of-court mechanism for debt settlement, after the improvement regulations incorporated in the new law passed on Tuesday by Parliament.

An amendment provides that creditors are given the possibility to request an advance payment of up to 10% of the debt, as shown by the calculation tool of the extrajudicial mechanism.

The government is proceeding with the expansion of card terminals (POS) in 35 sectors of the Greek economy from January 1, 2024.

According to the draft decision, 100% of economic activity is now covered and immediately after the passage of the tax bill, the conditions and fines for those who do not comply will be made public.

The government is using a carrot-and-stick approach to increase debt settlements through the out-of-court mechanism: It is tightening penalties in cases of noncompliance through provisions to be included in a bill to be tabled in Parliament around end-September.

Starting in September, the Independent Authority for Public Revenue (AADE) will be able to monitor debtors' repayment schedules in real time and message them immediately if they skip a payment.

The names of individuals and companies that have outstanding debts over 150,000 euros to the state and/or the social insurance fund (e-EFKA) were posted by the Greek Independent Authority for Public Revenue (AADE) on Friday.

With the July 31 deadline to agree on a repayment schedule for their debts to the state having come and gone, and with very few takers, authorities are taking the next steps: shaming and, hopefully, collecting, although the latter part will be far from easy, officials admit.