Tax office starts collecting businesses' Covid debts

Entrepreneurs who have not yet paid off any of their coronavirus debts with the Tax Authority can expect a collection letter on their doorstep in the coming period. The extra time granted by the Tax Authority ended on Monday. The government agency will now start collecting the debts.

The Tax Authority will use the coming days to “take stock,” said a spokesperson for the Ministry of Finance. “An army of bailiffs will not immediately set out.” Businesses will first get a reminder. The tax office will first approach entrepreneurs with debts dating from before the coronavirus crisis.

The Ministry couldn’t say immediately how many entrepreneurs with coronavirus debts haven’t made contact with the Tax Authority yet. At the end of May, approximately 51,000 entrepreneurs hadn’t made any repayments at all.

Several companies have recently gone bankrupt partly because they had to start repaying coronavirus debts. On Monday, it was announced that Doek Retail, with 25 clothing stores from Vero Moda, Vila, and Pieces, will cease to exist for that reason.