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The government has announced a reform of the bankruptcy law. As announced on Saturday, the deadline for the start of reimbursement of tax deferrals will be postponed again. Instead of starting at the end of March, requests to settle deferred taxes will only start at the end of June.
AUSTRIA. Extension of tax deferrals and bankruptcy law reform as part of Corona’s help: Specifically, the government announced that the period of debt relief for companies will be reduced to three years, for individuals this will apply for a time limited, specifically for five years. In addition, the deferral of taxes and duties for companies has been extended for three months until June 30.
It will also be possible to resolve the arrears related to the pandemic with installment payments when the deferrals end, “for a longer period at a much lower interest rate,” the Finance Ministry said. “We make sure that companies don’t have to pay back taxes in the first recovery phase after closing. The aim is to identify the financial bottlenecks of companies at an early stage and initiate the appropriate relief measures, ”said Finance Minister Gernot Blümel (ÖVP). “With the new installment payment model, we are giving our companies much more time to pay their back taxes,” said Vice Chancellor and Greens chief Werner Kogler. A quick restart should be possible for entrepreneurs “in time before bankruptcy is inevitable,” Kogler said.
New restructuring process
A preventive restructuring process is also planned for companies. Specifically, there should be a “second chance for companies.” An individual restructuring plan must be reached in court with the approval of the majority of creditors. A balance of interests will be established between the indebted entrepreneur and creditors.
Because right now?
The fact that these demands are now also supported by the government should be welcomed, but the timing of the agreement between the coalition partners should be questioned, says NEOS economics spokesman Sepp Schellhorn, in response to the measures announced today. . However, it is important that entrepreneurs in Austria, in view of the current liquidity problems, can finally quickly get more air to breathe, Schellhorn added.
Open details
“In the new restructuring process, however, many details are still open,” Creditreform’s protector and managing director Gerhard Weinhofer told APA on Saturday. Above all, it is about “creating a balance between the various creditors – public authorities, banks and small creditors -” and the question of how to achieve this. “There are big questions here.” Basically, there has been a second chance in Austria for a long time, says Weinhofer, “because the insolvency law is also a restructuring law and it is very favorable to restructuring.” In the future, creditors are likely to be a little more cautious because there is a risk that the shorter period of debt relief will leave debtors less time to offer a reasonable installment.
First sales, then refunds
“We’ve been campaigning for the deadline to be postponed for weeks, because the first few companies must have the opportunity to generate sales before they can clear deferred contributions. That is probably logical! Delighted Sabine Jungwirth, federal spokesperson for the green economy. Financial and social security debts, in particular, are often the trigger for bankruptcy. Postponing the repayment phase until a time when income has returned can save many companies from bankruptcy. “With the postponement of the deadline, a contribution is made to the prevention of deforestation in the business landscape. This is extremely important for the overall structure and location. I am pleased that our demand can be enforced, ”says Sabine Jungwirth.
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