In the first seven months of this year, the Portuguese government has seized and sold over 49,000 houses and apartments from citizens owing tax.
Taking and auctioning off homes and cars is said to be the “last resort,” by a government that does it anyway, with cold efficiency and in record numbers.
These homes have been taken and sold off, often at little more than their patrimonial values, and represent an increase of 75.5% over the same period last year, despite assurances that the economy is getting better, there are lots of jobs and things have never looked better.
In the same period, 25,917 cars have been sold, a 77% increase over the same period last year.
The Tax Authority says that is does check through debtors' bank accounts first and then takes houses and cars if there is no money in accounts to settle tax demands.
If the debtor has no money or property for the state to grab, only then will it settle for withholding a portion of wages or pensions. Many find it impossible to engage with the Tax Authority and come to a settlement or payment schedule.
One of the driving forces is the commission paid to local tax office managers and staff when 'coercive collection' results in tax demands being settled, never mind that the house owner loses all and often any equity in his property due to the use of Partimonial Value as the reserve price.
In the past 51 days the Tax Authority has taken 17,644 houses, an average of 456 per day, that have been seized and sold at auction.
Add to these figures the record number of bank repossession, and observers can get a feel of the affect that 5 or more years of austerity is having on Portuguese taxpayers who find themselves unable to cope.
