The taxman’s favourite method of collecting overdue sums, the so called ‘coercive collection’ system, has risen 25% in a year.
The treasury has raked in €430 million in the first half of this year by seizing assets including vehicles, thus rendering many families and workers immobile.
The figures to the end of June 2015 are €90 million up on last year and have been published in the Official Gazette.
For direct taxes such as income tax, coercive collections have raised €168 million. In the case of indirect taxes such as VAT and car tax, €124 million has been raked in. In fees and fines, the state is €94 million better off with €44 million coming in from other tax debts.
The €2.3 million per day this year showed "the increased efficiency of the Tax Authority in the enforced recovery and the fight against tax fraud and evasion," according to the tax office which does not dwell on the social misery involved in it stripping people of the means to function economically and socially.
The tax authority also decided to cancel repayments amounting to €22.4 million owed to taxpayers as it decided they might not be valid, thus putting the onus onto the taxpayer to challenge the decision and to fund court proceedings to get their money back. Most will be unable to pay the stiff court fees involved.
Refunds of money legitimately owed to taxpayers mysteriously are still taking years to appear. The tax system now is one where all ideas of fair play by the state and cooperation from taxpayers has been abandoned.
There are instances where taxpayers are being shaken down for money when the state itself owes them refunds which are being withheld for no legitimate reason.
'Coercive collection' commission payments made to Finanças office managers and staff is a particularly nasty aspect of the system as offers of sensible scheduled repayment schemes and payment holidays are ignored by managers keen for their bonuses.
By behaving in this way, the tax authority's righteous mission to use coercive collections wherever possible 'for the good of the nation' may be working against the state's interest as citizens' inclinations are to engage in tax evasion wherever possible rather than declare and help the treasury repay the Troika its billions of interest each year.
