Tax officials will be able to search the homes of 4 million Greek residents who have debts to the state

With the blessing of the Mitsotakis government, the tax service will be able to conduct raids on the homes of 4,000,000 Greek residents who are in debt to the state in order to seize the debtor’s movable property. A practice used in totalitarian regimes for the “common good”.

Of course, the word “debtor” means someone who owes money to the tax authorities and cannot pay the exorbitant taxes of the Greek state with their meager income. Often all this is hidden behind the word “debtor”, so it is believed that these someone… wealthy people who do not want to pay taxes.

With outstanding debts to the tax authorities consistently exceeding €100 billion, almost 4,000,000 public debtors are at risk of enforcement action.

That’s half the country’s population

Almost a year ago, the new Code on the Recovery of Government Revenue (CIRC) further tightened the procedure for seizing debtors who owe money to the tax authorities. It should be noted that more than 1,750,000 taxpayers have open accounts with the tax authorities and owe more than 500 euros, which is the threshold for triggering enforcement action by the state.

However, according to the Independent Directorate of State Revenue (AADE), the total debt balance at the end of July 2023 was €105.1 billion, which is €7.6 billion less than in July 2022.

It should be recalled that, of the total outstanding debt of individuals, €26.3 billion relates to debts classified as uncollectible, bringing the actual outstanding debt to €78.8 billion.

Tax collectors are capable of turning houses upside down, opening doors, cabinets, various pieces of furniture, jars, pots and pans in search of money or items of value that can be seized to pay off a debt. In short, this will be a real police search. In addition, if we are talking about items that are insured, the compensation due under the insurance will also be confiscated!

The only restrictions on home invasions will apply to night hours and certain days of the week. It cannot take place at night, on Sundays and on holidays, unless there is information that the debtor is preparing to “escape” abroad, and the mayor or chairman of the municipal council, or the president of the municipal community, or a member of the municipal council must be present as a witness. council, or a member of the council of a municipal community, or an official, or a police officer.

In relation to enterprises that operate during the above periods and have a total confirmed overdue debt, exclusively to the state, exceeding the amount of 50,000 euros, it is permitted to seize movable property located in the debtor’s territory, during the operating hours of the enterprise and throughout the year, despite the previous subparagraph.

An arrest at night must be made under the supervision of a government official or police officer

According to the law, if the seized property is insured, then the seizure applies to the compensation due under the insurance, and the payment of compensation by the insurer to the defendant is void after the insurer has been notified in writing by the seized party of the seizure.

On the other hand, if the seized movable property is money in euros, then, after deducting the costs of execution, they are deposited directly into the account of the seized AADE office, for which a receipt is issued, or into the account of the Greek State, for which a receipt is issued, to pay off the debt.

For any excess amount, if the debtor is not present or does not agree to immediate payment, a deposit note must be issued in favor of the debtor.

It should be noted that upon the fact of seizure, in the presence of the persons involved and the debtor, a protocol is drawn up, which briefly describes the seized goods and indicates their value, estimated by the arresting agent, as well as:

• place and time of arrest,
• number and date of the seizure order,
• full name of the person who issued the seizure order,
• full name of the persons acting in concert,
• the total amount of debt specified in the seizure order.

If special knowledge is required to estimate the value of the seized property, the person making the seizure order may appoint an expert who can also act as a witness. The protocol on seizure is signed by the person making the seizure order, the witness and the debtor, if one is present and agrees to sign it, and is served or sent to the debtor within two days after the seizure.

As soon as the seizure is completed, a copy of the protocol is served on the person making the seizure, under his disciplinary responsibility and with the obligation to compensate the state, the debtor present or, if the debtor was absent, served on him within four days from the date of seizure.

The service period is extended an additional eight days for debtors residing outside the district of the trial court of the place of garnishment, and if the defendant is present and refuses to receive a copy of the garnishment report, then a statement of refusal is drawn up, which is signed by the garnishment officer and attached at the end arrest protocol.

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