Will Spain Follow Cyprus

Cyprus has passed a law that allows their inland revenue to take money from bank accounts for any money allegedly owed. The Cyprus VAT also have this power to just take what they believe is owed from accounts without any notification.  They do not need any court orders and they can take money even if the sum is disputed.  Believe it or not this has been demanded by the EU and the ECB as part of the conditions imposed for the e10m bail-out last March.

According to the requirements of article 3.7 of the Memorandum of Understanding (MoU) agreed to between Cyprus and the International Monetary Fund, the European Central Bank and the European Commission, Cyprus government must submit a “comprehensive reform plan to improve the effectiveness and efficiency of tax collection and administration.”

Now, didn’t Spain borrow a few quid from the same source to bail the Spanish banks out? Could a similar MoU have been a condition of that loan as well?

Much the same tax law was passed last week for the UK Inland Revenue, owe £1,000 or more he can take it out your account without your permission....If you have it of course.

So to know if a private individual who did owe £1,000 or more they would have to check on every bank until they came up with your named account in a bank, not to hard these days I suppose,  perhaps even look at you're outgoing standing orders for, say Council Tax / Electricity etc, or past tax payments in cheque, quite a few ways to find how you spend your money,  either way big brother is now looking that extra bit harder.

They can take it from your account without permission in Spain too, but you do have a period of appeal before it is done.

I can't imagine that type of law being passed here in Spain, but then again I suppose they thought the same in Cyprus before the bailout.