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More small debtors to benefit from overdue debt plans

June 20, 2018 at 11:40am
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Small debtors are those who have benefited the most from the long-term debt plan that has been in place for almost a year.

According to the Department of Taxation, 10,689 legal and natural persons with outstanding tax dues of up to  €100,000 and owing  a total sum of €158,56 million have signed up for the plan. After the deduction of penalties and interest, the state will receive of €131.49 million. The average of each taxpayer’s debts is estimated at around €15,000.

Moreover, 485 arrangements were made for tax debs ranging from €100,001 to € 200,000 (with an average of €138,000 for each debtor) with the sum owed reaching €67 million.

After these arrangements the Tax Department is expecting to collect around €55.63 million.  Figures show that 225 taxpayers who owed from €200,001 to €500,000 and (€300,000 in average) and €76.8 million overall will also benefit from the scheme. The state will collect around €64 million.

A total of 102 taxpayers owe more €500,000 of whom 73, with outstanding tax of €500,000 to €1 million are benefiting from the scheme. Finally, 29 taxpayers who owe more than a million each and around €41.28 million in total are included in the scheme: of these, €33.9 million will be collected after the deduction of interest and penalties. Overall, 11,773 arrangements have been made in the course of eleven months.

As this data shows, there is a larger number of small debtors benefitting from the scheme. Indeed, the use of the measure by small debtors is one of the criteria for supporting the extension of its application to the end of December 2018 (the legislation will expire on July 3).