Last winter’s tax amnesty programme cost the state €494 million, according to a response from the Ministry of Finance to a question in Parliament.
The well publicised tax amnesty allowed those paying before the 2013 year end legally to avoid most interest charges, fines and court costs on money claimed by the state in taxes and fines.
Socialist party boss António José Seguro asked the Prime Minister Pedro Passos Coelho two weeks ago what the costs to the state of the tax amnesty had been, today the Ministry of Finance supplied the answer.
This answer does not reveal how much of the money paid over is due to be refunded. The curious Portuguese way of appealing a tax demand involves having to pay over whatever sum is demanded, however ridiculous or incorrect, and then arguing the toss later with suddenly deaf and unavailable Finanças staff.
A significant part of the money harvested in late 2013 under the terms of the tax amnesty will have to be handed back to taxpayers as many demands will have been incorrect. The slow pace of refunds disrespects citizens' rights to their own cash, demanded by and retained by the state on often tenuous grounds.
Finance Minister Maria Luís Albuquerque said only that these appeal processes are "naturally lengthy." Her response does no credit to her department which ensures monies due to be refunded to citizens, many of whom have been bullied into paying tax bills that are incorrect, takes the longest possible time to be repaid, without interest.
The tax amnesty yielded €1,277 billion to the state - €572 million in corporation tax, €196 million in VAT and €161 million in income tax.
