In this video, we're going to talk about what happens when an entrepreneur doesn't pay his or her taxes on time. The first thing to take into account in this case is a so-called ex officio assessment by the tax authorities. An ex-officio assessment is an estimate made by the Tax and Customs Administration about the amount that you must pay for the period in which you did not file a tax return. This amount is often three or four times higher than the amount you actually owe. It is important that you still make the correct declaration as soon as possible. If you still do not pay your taxes, the Tax and Customs Administration will send you a reminder. In addition, interest is added. So the amount you owe keeps getting higher.
After this, the Tax Authorities engage a bailiff. The bailiff can, for example, seize your belongings. If you still do not pay, a public sale of your belongings will take place. In a public sale, the proceeds are usually only 10% of what the assets are worth. Even if the proceeds are then mostly used to pay the tax debt, this is not a solution because the debt will usually not be able to be repaid in full.
All in all, this is quite a doom scenario. It is therefore important that you take action early. When you notice that you cannot or cannot pay your taxes on time, you must communicate this to the Tax Authorities and request deferral of payment.
How can you apply for deferment of payment from the tax authorities? We explain this in our video "Taxes: Deferral of Payment".