Portugal’s taxpayers owe €6.5 billion, nearly half of which will be “difficult to recover”

The headache of failed businesses owing large sums of money is set to continue into this new government, with current debts mounted up at the tax department topping €6.5 billion. According to Correio da Manhã this week, nearly half of the debts “will be difficult to recover” as the businesses involved have been declared insolvent. Even so, coercive back tax collection has recovered almost €1.17 billion this year.

The sum represents a 14% increase on coercive collection from 2014, adds CM, adding that every month tax inspectors have been seizing an average of 33,000 debtor assets.

Assets constitute properties, bank accounts, vehicles and/or earnings, explains the paper, adding that the new government’s programme “envisages mechanisms that prohibit fiscal executions on properties that serve as the family residence”.

This is one of the cornerstones of the new government: that no more families should lose their homes over tax debts.

natasha.donn@algarveresident.com