Monday, October 10, 2016

“Tax relief” can yield 100 million per year – the Observer

The Special Programme for the Reduction of the Debt to the State (PERES) may generate a fitting for the State of the order of one hundred million euros per year. The number was given by the minister of Finance, Mário Centeno, after the secretary of State for Fiscal Affairs have stated in Parliament that he had not a revenue forecast for this year.

The expectation is that "in each year an amount close to 100 million euros to be written off that debt," said Mário Centeno to RTP on the Special Program for Reduction of the Debt to the State (Peres), which allows for the payment of the missing value to the Social Security and tax up to a maximum of 150 monthly instalments.

Rocha Andrade refuted the criticism that the program, which the government refuses to be a forgiveness of tax, has as the main goal is to attract additional revenues, the time to strengthen the implementation of the budget of 2016. The secretary of State says that the outcome depends on the adherence of taxpayers to the plan, and admitted the same to a revenue decline in the short term, if the debtors opt to pay in installments instead of paying the debt to the head.

The impact of the PERES this year it will also depend on when the program will go into effect. What is expected is that taxpayers will be able to join until 20 December. Those who opt for the payment in instalments will have to pay 8% of the amount in debt by the end of the year, in monthly installments that can go up to 12 if you opt for the longer-term settlement. In statements to the Cash, Rocha Andrade showed that the reduction of interest in this case can vary between 10% and 80%.

For those who choose to make the full payment of the debt, the program assures the forgiveness of interest and legal costs.


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