The taxman’s favourite method of collecting overdue sums, the so called ‘coercive collection’ system, has risen 25% in a year.
The treasury has raked in €430 million in the first half of this year by seizing assets including vehicles, thus rendering many families and workers immobile.
The figures to the end of June 2015 are €90 million up on last year and have been published in the Official Gazette.
For direct taxes such as income tax, coercive collections have raised €168 million. In the case of indirect taxes such as VAT and car tax, €124 million has been raked in. In fees and fines, the state is €94 million better off with €44 million coming in from other tax debts.
The €2.3 million per day this year showed "the increased efficiency of the Tax Authority in the enforced recovery and the fight against tax fraud and evasion," according to the tax office which does not dwell on the social misery involved in it stripping people of the means to function economically and socially.
The tax authority also decided to cancel repayments amounting to €22.4 million owed to taxpayers as it decided they might not be valid, thus putting the onus onto the taxpayer to challenge the decision and to fund court proceedings to get their money back. Most will be unable to pay the stiff court fees involved.
Refunds of money legitimately owed to taxpayers mysteriously are still taking years to appear. The tax system now is one where all ideas of fair play by the state and cooperation from taxpayers has been abandoned.
There are instances where taxpayers are being shaken down for money when the state itself owes them refunds which are being withheld for no legitimate reason.
'Coercive collection' commission payments made to Finanças office managers and staff is a particularly nasty aspect of the system as offers of sensible scheduled repayment schemes and payment holidays are ignored by managers keen for their bonuses.
By behaving in this way, the tax authority's righteous mission to use coercive collections wherever possible 'for the good of the nation' may be working against the state's interest as citizens' inclinations are to engage in tax evasion wherever possible rather than declare and help the treasury repay the Troika its billions of interest each year.
Comments
There is essentially nothing wrong with the idea of bonuses for rooting out habitual tax evaders but it must be equitable. The shadowy VIP elite running the Inner State in Portugal must also be scrutinised with equal vigour.
Catching one of them with their millions professionally banked off shore; spread amongst friends and relatives bank accounts - pays the equivalent of thousands of amateur small tax evaders with their one bank account.
But it will not happen as Portuguese tax inspectors know that whilst their VIP's are faceless in the shadows - the tax inspector is in broad daylight. They have an identity; easily found through their superiors. A name and fiscal number. An address. Their children go to school and return at regular times on regular routes. The family car is serviced at a certain garage. And the tax mans family house backs onto un-managed woodland. Now - as in the 3rd World - you know why tax collecting is still so hit and miss here in Portugal. Fear.
All this should have been educated into the population back then ... 2 generations ago. Not rushed in now following a crisis and the years being directed by the Troika. Without which there would have been absolutely no change for the better in anything.
It is so obvious that Portugal has only ever been in a transition stage towards developed status. Still well clear of being advanced. So much of the behaviour of its political and business leadership and public administration is still no different to that in the 3rd World.
Every public official in Portugal, particularly those charged with 'regulation', has absolutely no idea how to do their work correctly and their position just apes advanced EU countries.
Hence all the banking collapses following scandals. Here taxmen behaving like 'bandits' - but how else can they bring in the money to keep the tens of thousands of official Government cars on the road ?