The Greek Public Revenue Authority (AADE) has recently released Decision A. 1121, which outlines Greece’s decision to maintain the interest rates for late tax payments and the return of undue tax payments. Despite the European Central Bank’s increase in the Main Refinancing Operations Interest Rate, Greece will keep the interest rate on late tax payments at 8.76% per annum, and the interest on undue tax payments at 6% per annum. This decision, effective from 9 August 2023, will remain in place for a period of two years.
This announcement comes as a relief for taxpayers in Greece, as it provides them with some stability and predictability in terms of their financial obligations to the government. By maintaining the current interest rates, the Greek government aims to strike a balance between encouraging timely tax payments and providing reasonable terms for those who may have made undue payments.
Late tax payments can have significant consequences for both individuals and businesses. In addition to the financial burden of paying the outstanding taxes, taxpayers may also face penalties and additional interest charges. By keeping the interest rate at 8.76% per annum, the Greek government hopes to incentivize taxpayers to settle their obligations promptly and avoid further financial strain.
Similarly, the decision to maintain the interest rate on undue tax payments at 6% per annum is a positive development for taxpayers who have made overpayments to the Greek government. In some cases, taxpayers may have inadvertently paid more than what they owed or may have received a refund for taxes that were later deemed to be excessive. In such situations, the government is obligated to return the excess amount to the taxpayer, along with the applicable interest. By keeping the interest rate at a reasonable level, the Greek government aims to ensure that taxpayers are not discouraged from seeking refunds and that they are adequately compensated for any undue payments made.
It is worth noting that the decision to maintain the current interest rates for late and undue tax payments is in line with Greece’s broader efforts to improve its tax collection system. Over the years, Greece has implemented various measures to combat tax evasion and increase compliance. These efforts have included the introduction of stricter penalties for tax evaders, the enhancement of tax auditing procedures, and the promotion of electronic tax filing systems. By maintaining reasonable interest rates, the Greek government aims to strike a balance between encouraging compliance and ensuring fairness for taxpayers.
The decision also reflects Greece’s commitment to fiscal stability and responsible financial management. Despite the increase in the European Central Bank’s Main Refinancing Operations Interest Rate, the Greek government has chosen to maintain the existing rates. This decision sends a positive signal to both domestic and international stakeholders, as it demonstrates Greece’s determination to honor its financial obligations and maintain a stable economic environment.
In conclusion, the Greek Public Revenue Authority’s decision to maintain the interest rates for late tax payments and the return of undue tax payments is a welcome development for taxpayers in Greece. By keeping the rates at 8.76% per annum for late payments and 6% per annum for undue payments, the Greek government aims to strike a balance between encouraging compliance and providing reasonable terms for taxpayers. This decision demonstrates Greece’s commitment to fiscal stability and responsible financial management, and it is expected to have a positive impact on the country’s tax collection efforts in the years to come.