Entrepreneurs increasingly seeking help to repay tax debts from coronavirus years

Entrepreneurs with a tax debt from during the coronavirus pandemic are increasingly seeking help to figure out how to repay the debt, said financial assistance platform Geldfit. The organization saw the number of calls they were getting at the start of this year rise seven-fold compared to last year.

This now concerns calls from hundreds of business owners, according to Geldfit. The organization estimated that over 80,000 business owners cannot pay their coronavirus debts in time.

However, at the same time, outstanding coronavirus debts will become "preferential" in favor of the Belastingdienst, the Dutch tax office, starting from April 1. "That means that the coronavirus tax debts will be given preference" over other debt collection, Jacqueline Zuidweg of Geldfit explained.

Credit insurer Allianz Trade warned earlier of an increase in bankruptcies this year. "No other country in Europe has an increase this strong," said Johan Geeroms, the Allianz risk director for the Benelux region.

The amount of bankruptcies increased by around 52 percent last year. The credit insurer stated that bankruptcies are expected to rise again by 31 percent this year.

The tax authorities reported last month that most business owners have paid their existing debts from the coronavirus period, with two-thirds of the debts having been paid back. Around 11.5 billion euros of debt was unpaid in February, and the tax authorities expect they will not be able to collect 2.5 billion euros.