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Tax Debt: Proposal from Parliament to restore installments & discount – Finance reacts

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They see the need for doses and MPs from other parties – What's On Today

Resetfacilitieswith a settlement for the payment of overdue tax debts, the Parliament is trying with two proposals submitted by the EDEK MP Ilias Myrianthous and by the ELAM MPs. The proposals were discussed in the Finance Committee of the Parliament on Monday.

What does the Myrianthos proposal provide

Essentially the first proposal of a law, by the deputy of EDEK Ilias Myrianthous, foresees a restoration of the planwhich enabled those who had overdue tax debts to the Tax Department before 2015 to settle and pay their tax debt in instalments. At the same time, depending on the number of installments (up to 54 installments for amounts up to €100,000 and up to 60 installments for amounts over €100,000), a discount of 50% to 95% was offered on interest and charges. The plan received several extensions and the term of the last extension expired in November 2020. It is noted that the majority of taxpayers who had debts, took advantage of the provisions of the plan and paid their debts in one go, taking advantage of the 95% discount.

< p>The proposal of Mr. Myrianthous foresees that the taxpayers should, in order to be able to join the plan, submit all their tax returns by June 30, 2023.

What is valid now

It is noted that this arrangement is still in force today but ONLY those who have submitted ALL their tax returns by November 30 can apply to join the scheme of 2020. If a tax return for a tax year before 2015 has now been cleared, every citizen or business has 6 months from the day the certificate is issued to apply to join the installment plan.

It is emphasized that apart from this possibility, there is no other arrangement and those who have overdue debts must pay normally. In some cases, settlements can be made between the taxpayers and the debt collectors.

What does ELAM's proposal say

The second law proposal, by ELAM MPs Christos Christou, Lino Papagianni, and Sotiris Ioannou and the independent MP Andreas Themistokleous, requests arrangements to facilitate employers and self-employed workers to pay off their arrears in 120 equal monthly installments at the latest. In other words, after Myrianthos' proposal to restore the plan was passed, ELAM recommends that the installments be 120 instead of 54 or 60.

Myrianthos in Brief: Agree on an arrangement to help the world


Mr. Myrianthous, speaking to Brief said:“The proposal provides for the reinstatement of the arrangement for paying tax debts in installments so that those who have taxes until 2015 can join an arrangement with this plan. But they should submit all their tax returns for all years up to 6/31/2023. This way the tax debts will be able to be settled until 2015 and they can be done in installments and get a discount on interest and charges”. and in Parliament,are open for discussion to make changes to the proposal in order to find a solution that is acceptable to the Ministry of Finance. For example, as he told us, the discount granted could be smaller, while a maximum amount of overdue debts could be set.

“We are asking that this right be given back to those in debt to get back into these plans. There are people who were in the previous arrangement but could not pay their installments due to the crisis caused by the pandemic. Several settings were cancelled. These arrangements are pending. We are trying to help people get back on track. That's why we brought the design back again. I emphasize that we are open to discussion in order to find a solution to help those who need it. We want a legislation to be promoted in consultation with the Ministry of Finance so that there is no problem. We have various proposals to overcome the reservations of the Ministry of Finance. We don't want to create a problem but to help the people who need it”.

It is worth mentioning that as Brief is informed, they see the need for the possibility of settlement in installments and MPs from other parties, which was also confirmed by Mr. Myrianthous. “There is consensus in the Parliament's Finance Committee to regulate the issue. We do not want to come into conflict with the Ministry but to find a solution”

Erotokritou: The solution should be agreed upon by all parties involved

The President of the Finance Committee of the Parliament, Christiana Erotokritou, speaking about the issue in Brief, said: “Any proposal that could help in the smooth repayment of debts owed to the state by keeping the self-employed and small and medium-sized enterprises alive and helping their liquidity, is welcome for discussion, provided that there is also the agreement of the Tax Commissioner and the Ministry of Finance, as was done in the past . The goal is to agree on a solution that will be promoted by all parties involved. In the coming weeks it is likely to be discussed again in the Finance Committee after some consultations on the matter have taken place”.

Reactions from the Ministry of Finance and the Tax Commissioner

Representatives of the Ministry of Finance and the Tax Commissioner who were in Parliament on Monday expressed their disagreement with the proposals that are being promoted since they believe that several extensions were given while they also spoke of a bad impression that will be given to good payers.

The representative of the Ministry of Finance, Naya Symeonidou stated that an extension has already been granted several times at this stage, the opportunity to settle in installments was given, while any further extension creates collection problems for the state, as well as legal problems due to the of time that has passed. He also added that the Ministry considers that the period of time given so far is sufficient.

The representative of the Tax Commissioner, Ioannis Zevlaris said that it is bad to continue to give extensions. precedent, noting that this creates a bad feeling among good payers who pay on time. He noted that the discussion concerns overdue debts from 2015 and before and therefore sufficient time was given to make a relevant arrangement.

source: Brief (By Sotiris Nikiforos)

Source: 24h.com.cy

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