Thousands of landlords who were forced to accept a "haircut" 40% in the monthly rents they receive from the coronavirus-affected businessmen or their tenants they did not see the amount of the compensations they are entitled to be credited by the Independent Public Revenue Authority either in the form of tax deductions – in the case of rent reductions for the months of March-October 2020 – or in the form of direct amounts payable – in the case of November two-month rent reductions – December 2020.
particularly, more than 40.000 Landlords who were forced to accept a reduction in rents by 40% in the period March-October 2020 have lost the tax deductions they are entitled to, for trivial causes of a formal nature. This is because of the crossroads carried out by A.A.D.E.. emerged:
* Cases in which the amounts of regular rent, which were stated in the lease information declarations and the rent amounts stated in the COVID declarations differed little, in small amounts, but when enough to cause disagreement at cross-checking and ultimately lead to non-clearance of COVID statements. In these cases the owners have received notifications from A.A.D.E.. and have time until 26 February 2021 submit COVID correction statements to secure the tax deductions to which they are entitled, even afterwards.
* There were also thousands of cases in which landlords had declared reduced rents on COVID declarations by making forced decimal rounds, which resulted in reduced post-rounding amounts., compared to regular rents, not exactly against 40%, as it should, but in percentages 39,99% the 39,98% etc.. This development automatically led to the rejection of COVID declarations, because the resulting rent reduction rates were lower than 40%!
The following example is typical: The exact monthly rent received by a landlord from his landlord rented normally amounted to 833,34 euro (10.000 euros per year). However, because the AADE electronic platform to which the owner submitted the lease information statement does not accept decimal digits, the landlord rounded out the monthly rent from 833,34 euros in 833,00 euro. The amount of rent received by the landlord from March onwards reduced by 40% in relation to their actual rent 833,34 euros was 500 euro. However, in the COVID declaration submitted by the owner, the indication of a normal rent rounded to 833 euros and reduced rent configured 500 euro led the TAXISnet system to – correct mathematical result – to bring out the percentage reduction in 39,98%. But because this percentage was below the forecast 40% the COVID declaration was rejected and the owner lost the compensation, for all months from March to October! (The compensation would be given in the form of a discount – tax credit equal to 20% of 60% of rent).
In each of these incredible cases of unjust compensation, landlords can no longer do anything to secure the amounts of tax deductions they are entitled to, even afterwards. This is because they are not included in those who have received notifications from A.A.D.E.. to correct the submitted COVID declarations and therefore, they are no longer allowed to submit amending COVID declarations for the months of March to October 2020.
In addition, when paying direct compensation to more than 200.000 Landlords who were forced to collect rent amounts for the month of November 2020 reduced by 40%, there were also problems. Specifically, some owners found that the amounts of compensation they received did not correspond to 50% of the lost 40% of rent, that is, in 20% of the total rent, as provided by law, but were significantly lower, limited even to half the amounts they should have received.
The most probable reason for this seems to be the fact that in the specific cases they had been agreed and declared, in lease statements, dates of collection of normal rents by tenants in the middle of each month. E.g. instead of the 1st of each month, the 15th was declared as the day of rent collection, so the TAXISnet system, when clearing COVID declarations, seems to have taken into account not the monthly rent but half that amount as the basis for calculating the income loss and compensation payable, resulting in the compensation being halved respectively!
In addition to the above problems faced by more than 40.000 owners, there are others 35.000 confirmed eligible owners who cannot receive their compensation for 4 reasons related to their bank accounts. These reasons are as follows:
1) Non-notification to AADE by the beneficiary of the collection of the compensation of the IBAN number of his bank account, to deposit the amount he is entitled to. The full IBAN of the deposit account should be registered on the beneficiary's page in TAXISNET, in the left column “My Taxis Net” and in the window “Account Statement – IVAN”.
2) Account declaration with more than two beneficiaries. The sub’ Decision No. A1019 / 2020 of the Deputy Minister of Finance Apostolos Vesyropoulos explicitly states that: "In case of a joint account this can be declared by up to two beneficiaries". Therefore according to her, no money can be deposited by the State in joint accounts with more than two beneficiaries, even if the name of the recipient of the compensation is first.
3) Account statement opened in a foreign bank. The declared account must be opened in any Greek Bank, with IBAN starting from GR. The deposit in a foreign bank does not seem to be foreseen, nor has it been tested whether it can work in practice.
4) Bank account statement that is inactive. The declared account must be active, and not be classified as “inert”. Inactive will be characterized when for 24 In the following consecutive months, no transactions have been made with direct debit of the beneficiary's account. Inactive accounts are not characterized as time deposit accounts. If there is an account but it is already marked idle, requires an application to the Bank and an update of the depositors' details.