From debt to seizure, here’s what happens when you don’t pay the tax authorities

ADebts to the tax authorities must be avoided and DECO PROteste’s advice is that “if you can, always pay”, as “the tax authorities can become that enemy that you don’t want to have, that charges failure up to seizure“.

From debt to garnishment, here’s what happens:

• 1st Billing note: is the document you receive with information about the amount and time available to pay a specific tax and respective payment methods.
• 2nd Notification of non-compliance: The tax authorities inform you that you are in an irregular situation and allow you to pay off the debt, with interest and other costs.
• 3rd Start of tax enforcement: is alerted, by letter, of the opening of the tax enforcement process and its consequences. You can still pay, with late payment interest and other charges (court fees and others). The default interest rate, set annually by the Treasury and Public Debt Management Agency – IGCP, is set at 8.876 percent and has increased in recent years. It applies to debts to the State resulting from contributions, taxes, fees and other taxes, the payment of which occurs after the deadline for voluntary payment.
• 4th Attachment: with or without notice, movable or immovable assets, or even rights and income, are seized. In the absence of seizable values, the process is suspended three months later, until assets emerge.
• 5th Sale of seized goods: In the case of movable or immovable assets, you receive a notice that the assets are going to be sold and that you have one last opportunity to settle the debt, before the sale.

Read Also: This is what happens if you don’t pay your debts to the tax authorities

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