It was recently published by the Council of State which is the supreme court, a ruling referring to the statute of limitations on debts owed to the government by insured persons. Under provisions in effect since 2014, all debts owed to the state were subject to a 20-year statute of limitations, and moreover, the limitation period began from the time the debt was certified, not from the time it arose. The Council of State, in a lengthy reasoning—excerpts of which are presented in this article—concludes that In some cases, the statute of limitations should be 10 years, not 20 years..
This reasoning is also adopted by the present court decision in an objection to an individual debt notice sent by the KEAO regarding claims for social security debts from previous years.
These debts, including surcharges, had reached exorbitant amounts and related to contributions to the OAEE. The first three tax assessment notices covered the period from 1987 to 2006, and the last one covered the period from 1999 to 2007.
In general, regarding the individual notifications sent by the KEEO, The insured debtor has the right to file an objection with the Single-Judge Administrative Court of First Instance within 30 days of the date on which he received the individual notice.
For debts owed to the OAEE, the public revenue collection procedure is followed. The Organization’s right to collect contributions is barred after 20 years have elapsed from the end of the fiscal year in which they became due. In the event of the issuance of a P.E.E.P.T., the arrangement of debts in installments, the filing of a lawsuit by the Organization, or any other case provided for by the K.E.D.E., the statute of limitations is suspended and a new 20-year period begins.
Subsequently, a twenty-year statute of limitations was established for social security agencies’ claims arising from unpaid social security contributions, which begins at the end of the fiscal year in which the claims were assessed.
Since May 12, 2016, when the EFKA (now e-EFKA) was established, which also incorporated the O.A.E.E., the statute of limitations has changed once again, and since then, claims for unpaid social security contributions are subject to a twenty-year statute of limitations, which begins on the first day of the year following the one in which the insurable work or service was performed.
In Decision No. 1833/2021 of the Plenary Session of the Council of State, it was ruled that the general rule establishing a twenty-year statute of limitations on claims for the payment of contributions by social security agencies affiliated with the EFKA is contrary to the constitutional principles of proportionality and legal certainty. With regard to those liable for social security contributions, the statute of limitations must be set at a duration necessary to ensure, on the one hand, their right to a defense against the difficulties of proving facts dating back to the distant past, and, on the other hand, to prevent debtors from being driven to financial ruin due to the obligation to simultaneously pay accumulated debts spanning several years, with further adverse effects on employment and the national economy in general. On the contrary, it is necessary to ensure that they are informed of their obligations in a timely and relatively short period of time, so that they are not caught off guard but can plan their professional activities for the benefit of the national economy as well.
Furthermore, the above provision is contrary to the principle of legal certainty, insofar as the twenty-year statute of limitations—which was enacted, in fact, at a time when the obligors had already incurred various financial burdens to address the country’s fiscal crisis, applies retroactively to claims that had arisen prior to the new provision’s entry into force and had not yet become time-barred.
Because there is a legal gap between the two laws governing the statute of limitations on social security claims before and after the establishment of EFKA, this gap must be filled by applying the ten-year statute of limitations on claims for the payment of contributions for all entities incorporated into the EFKA, This is considered a reasonable statute of limitations period for such claims.
In the present case, the following facts emerge: Through an individual notice of overdue debts from K.E.A.O., the appellant was informed of her overdue social security debts to E.F.K.A. (formerly O.A.E.E.), totaling 120,449.48 euros. The aforementioned debts, arising from the aforementioned acts of the O.A.E.E., were certified by four cash certification acts issued by K.E.A.O.
The appellant argues that the social security agency’s right has been barred by the statute of limitations because she was insured with the former O.A.E.E. from 1987 to 2007, whereas in 2017 she was served with the aforementioned individual notice informing her of the existence of the debts in question, which date back more than twenty years.
Based on these facts, and taking into account that the appellant was insured from 1987 to 2007, the Court ruled that the disputed claims against the defendant, which were assessed in 2017—the year the aforementioned assessment notices were issued—had become time-barred.
By Anastasia Miliou, Attorney at the Supreme Court
ANASTASIA CHR. APPLE
LAWYER AT THE SUPREME COURT
Ave. 403 Mesogeion Avenue, Agia Paraskevi, Agia Paraskevi
Tel. 6945-028153, 213-0338950
e-mail: natmil@otenet.gr
www.legalaction.gr, fb: Anastasia Miliou
Author of the article:
Attorney at Law & Attorney-at-Law & Attorney-at-Law
Ave. 403 Mesogeion Street, Agia Paraskevi, Agia Paraskevi, Attica
Tel. 6945-028153, 213-0338950
e-mail: natmil@otenet.gr, info@legalaction.gr
www.legalaction.gr
