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Tax and Overdue Debt Settlement Procedures Launched
On 30 September a new law was enacted to provide for a special tax settlement scheme which is optional and may cover all pending tax files of business enterprises and freelance professionals concerning the accounting years which ended on or before 31 December 2009 under the terms and conditions set in the law. Taxand Greece looks at settlement procedures that have been launched.
Under the new law an overdue debt scheme has also been enacted which covers mainly debts towards the Greek State, which have been entered into the public accounts and have become overdue. The relevant scheme provides for certain discounts depending on the number of installments opted for by the debtor, including the waiver of late payment surcharges and/or reduction of additional taxes due under specific terms.
The law provides several deadlines for companies to apply for tax settlement, depending on the case at hand (the shorter of which expire on 15 November 2010, 24 November 2010, 29 November 2010, 17 December 2010). The overdue debt settlement scheme is fairly flexible as regards the timing factor, although the deadline for benefiting from the most generous discount expired on 29 October 2010. Although prior experience of tax amnesty laws has shown that almost in the majority of cases, relevant deadlines are extended to accommodate the massive requests of taxpayers, it cannot be foreseen under the current economic climate whether this will be the case again. If so, at any rate relevant deadlines would not be expected to extend further than the end of December 2010.
Your Taxand contacts for further queries are:
T. +30 210 6967 000
Maria C. Zoupa
T. +30 210 69 67 000
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