Tax debt reduced by EUR 35m in six months

Tax debt reduced by EUR 35m in six months

Debt to Slovenia’s revenue service was reduced by EUR 35m or 2.7% in the first half of the year to EUR 1.285bn. Almost 60% of the debt is subject to regular enforcement procedures, while the rest is conditionally enforceable.

According to a report by the Financial Administration (FURS), active tax debt as of the end of June amounted to EUR 769.63m, up 12% from the end of last year.

The conditionally enforceable debt, whose recovery depends on court procedures, decreased by 18.5% in the period to EUR 516m, shows a report submitted by FURS to the government.

The increase in active debt and the decrease in the conditionally enforceable debt is largely due to changes in the capture of data on secured debt that is not subject to insolvency procedures, but the change does not affect the overall tax debt.

As of the end of June, legal entities owed EUR 747.85m or 58% of the overall tax debt, while individuals, including self-employed and sole proprietors, owed EUR 537.80m to the state.

The bulk of the debt (39%) results from outstanding domestic taxes on goods and services, followed by social security contributions (31%), income and profit taxes (26%) and property tax (3.5%).

Almost EUR 174m or 13.5% of the overall tax debt was default interest.

In the first half of the year FURS sent out 286,641 late payment letters to tax debtors, issuing 164,982 decisions on tax enforcement and making 1,213 reminders by phone.

In this way it sought to enforce debt worth EUR 654.53m and actually managed to recover EUR 247.45m. It also submitted 325 motions with courts for enforcement against immovable property in a bid to recover a further EUR 16.09m.

FURS collected EUR 7.668bn in revenue in the first half of the year, an increase of 6.9% compared with the same period last year.

Of the revenue, 67.3% went into the state budget, 19.7% to the Pension and Disability Insurance Institute, 9.6% to the Health Insurance Institute and 3.4% to municipal budgets.

FURS’s report finds that the increase in fiscal revenue coupled with the reduction in tax debt shows more effective tax collection and better tax payment discipline.

Since 2014, when FURS released a single list of tax debtors, tax debt has been reduced by some EUR 204m./IBNA

Source: The Slovenia Times