Debt to the IRS: Which debtors settle, who don’t care – The facts –

Approximately 60% of the overdue debts of households and businesses to the tax office come from unpaid taxes, while the remaining 40% concerns fines, loans, court costs and imputations.

Debtors with debts of up to 10,000 euros try to close their open tax accounts by including their debts in regulation. On the contrary, the big debtors, indifferent, turn their backs on the regulations and their number is constantly “inflating” with 9,487 taxpayers owing 82.583 billion euros or 77% of the total overdue debt.

At the same time, only 4.6% of the actual overdue balance is in settlement, a percentage corresponding to 3.7 billion euros with the highest percentage of settled debts (19.1%) being found in the range of 500 to 10,000 euros.

The data of AADE

According to her data AADE processed by the State Budget Office in the Parliament, at the end of July, accumulated overdue debts reached 107.3 billion euros, recording an increase of 2.2 billion euros compared to July 2023 but a rate of 24.5% which corresponds to 26.3 billion euros, concerns debts that are classified as uncollectible. Thus, the actual overdue balance is limited to 80.7 billion euros, of which only 3.7 billion euros have been included in the regulatory regime.

Within a year, the number of taxpayers with debts of up to 10,000 euros decreased by 171,116 TINs, while those who owe the tax office more than 10,000 euros increased by 15,743 TINs.

Debtors and their debts

In particular, the new “x-ray” of overdue debts shows the following:

– 59.4% of the actual debts or 48.1 billion euros, comes from tax debts with the largest percentage (47.3%) concerning VAT, as the debts reach 22.7 billion euros, follows the income tax with a rate of 41.7%, while property taxes register a low rate of 5.8%, since they include debts amounting to 2.8 billion euros.

– Fines (fiscal and non-fiscal) make up 30% of the actual overdue balance, as they reach 24.3 billion euros and non-fiscal debts (loans, court costs, imputations, etc.), which make up 10.6 % of the actual overdue balance, a percentage corresponding to 8.6 billion euros.

– An amount of 8.7 billion euros of the tax debts comes from insolvent debtors and 13.1 billion euros concerns debts with installments due beyond the last decade.

– At the end of July 2024, the number of debtors appears reduced by 155,373 persons (natural and legal) compared to the corresponding period of 2023, resulting in 3,829,531 debtors. The reduction comes from the lowest categories of debt (up to 10,000 euros), with the number of debtors decreasing by 171,116 persons. On the contrary, an increase in the number of debtors is recorded in higher debts, with the largest being found in the category between 10,000 and 100,000 euros (by 12,864 persons).

Debts in settlement

In July, 3.7 billion euros were in settlement, or just 4.6% of the actual overdue balance.

The highest percentage of total settled debts (19.1%) is found in the range of 500 to 10,000 euros, while within this range the percentage of settled debts reaches 21.1% for amounts from 2,000 to 3,000 euros. However, the rates differ between individuals and legal entities.

Specifically, the highest percentage of settled debts of natural persons is found between 500 and 10,000 euros (19.1%) and reaches 21.4% for amounts between 2,000 and 3,000 euros.

On the contrary, legal entities settle at a higher rate (24.5%) debts belonging to the range from 10,000 to 100,000 euros, while this percentage reaches 28.3% in the category of 10,000 to 20,000 euros.

Low debt settlement rates are found both in low amounts of debt (especially under 500 euros) and in high amounts of debt (over 20,000 euros for natural persons and over 150,000 euros for legal entities).

How many owe and how much to the IRS

820,946 individuals and legal entities appear with debts of up to 50 euros. From 50-500 euros, 1,257,467 VAT holders owe, from 500-10,000 euros, 1,392,928 VAT holders, from 10,000-100,000 euros 303,907 individuals and legal entities, 100,000-1,000,000 euros owe 44,796 VAT holders and with debts over 1 .000,000 9,487 taxpayers appear.

Source: ot.gr