In court for debts owed to EFKA

The offsetting of debts owed to EFKA with any returns from tax office, the suspension of the right to submit Detailed Periodic Declarations electronically, as well as criminal proceedings includes, among other things, the operational plan of Insurance Debt Collection Center, with the aim of preventing the creation of new debts.

After all, old debts exceeded €46 billion, and any attempt to include part of them in favorable arrangements is futile, as debtors seem to be turning their backs on the continuous efforts of the economic team.

Even applications for debt write-offs after 10 years, according to the latest law, have not exceeded 6,000, of which only 2,246 have been approved, while another 1,232 have been rejected. In practice, the EFKA and the KEAO, despite the slow pace they follow, as special attention is required in the process, have already processed 3,478 applications out of a total of 5,986 submitted, i.e. 81% of the total submitted to date.

However, the process of reintegrating old, lost arrangements and the subsequent publication of the list of major debtors did not have a particularly positive outcome. According to data from the Social Security Debt Collection Center, of the 259,910 arrangements for social security debts that were lost, only 18,667 were revived by July 31, when the deadline for joining the arrangement expired. Now, in order to avoid enforcement measures, debtors must make use of the standard debt arrangement, repaying in up to 24 installments.

At the same time, the KEEO is activating the weapons in its arsenal to prevent the accumulation of debts. Like the tax administration, the Centre has the means to pursue the collection of contributions owed by all debtors, with certain variations in terms of the amount of the debt and the existence or otherwise of an active settlement.

Thus, if the debt has not been subject to a settlement arrangement, the KEEO imposes enforcement measures such as seizures, auctions, and mortgages on real estate, while in special cases it even proceeds to criminal prosecution of debtors. Recently, it has also been using other measures, such as suspending the electronic submission of Detailed Periodic Declarations, and reporting the insurance contributions owed by natural and legal persons to the tax authorities, which are offset against any cleared VAT and income tax refunds.

As he points out, speaking to «K», the deputy director of EFKA Nikos Chouridakis, The Ministry of Labor and the EFKA continue to plan new interventions that will help those who genuinely wish to pay and do so, without these measures creating disincentives for those who, despite the difficulties, remain consistent in their obligations to the agency.

Debts exceed €46 billion, and any attempt to include part of them in favorable arrangements is futile...

Specifically, the KEEO's operational plan includes maintaining a valid register of debtors, analyzing the characteristics of the debts, systematically monitoring compliance with the arrangements, and finally, intensifying the process of targeted enforcement measures in the case of systematic «bad payers.».

• Compulsory measures against KEDE. If the debt has not been subject to a settlement arrangement, compulsory measures such as seizure of movable and immovable property and auctions are imposed by KEAO.

• Other debt security measures. To secure the interests of the entity, it registers mortgages on the real estate of debtors/co-debtors even when the debt has been subject to a settlement but exceeds €250,000.

It prevents the issuance of a certificate of insurance compliance for the transfer of real estate when the debt is not settled and secured by collateral or financial security.

• Criminal prosecution. It forwards complaints to the public prosecutor's office for criminal prosecution when the principal contribution debt exceeds €30,000, while if it exceeds €150,000, the complaint is accompanied by a request to initiate summary proceedings.

• Suspension of electronic services for the submission of APDs. The KEAO activates the measure of suspending the use of the agency's electronic services for the submission of APDs when the debts have not been subject to a settlement regime. In such cases, the employer submits the APD digitally to the competent local office of the agency, providing the tax returns for the last three years of the employer and jointly liable persons (E1, E2, ENFIA and income tax returns, as well as lease agreements for headquarters and branches), and seizures of movable/immovable property and claims held by third parties are imposed.

• Offsetting insurance debts against VAT and income tax refunds. It reports the insurance contributions owed by natural and legal persons to the tax authorities for the purpose of offsetting them against any cleared VAT and income tax refunds. If the debt has been subject to a settlement scheme, only 1/7 of the debt is offset up to the amount of the refundable amount, while if the debt has not been subject to a settlement scheme, the entire debt is offset up to the amount of the refundable amount.