Canary Islands

The Government authorizes an expenditure of 29 million for the collection management of the next two years

The agreement is in line with the commitment of the Ministry of Finance to improve the tax system of the Canary Islands

The Government authorizes an expenditure of 29 million for tax collection management over the next two years

The Government Council of the Canary Islands today authorized an expenditure of 29 million euros to finance the service that the public company Gestión Recaudatoria de Canarias (Grecasa) will provide to the Canary Islands Tax Agency in the next two years.

The agreement is adopted before the upcoming expiration of the assignments currently carried out by the company: notifications of acts, executive collection and information and assistance services to taxpayers, as well as tax information technology services.

The Government will allocate 14.3 million euros in 2020 to finance these services, while 14.6 million will be allocated in 2021.

It so happens that the Ministry of Finance, Budgets and European Affairs - on which the Canary Islands Tax Agency depends - has set as one of its strategic objectives the improvement of the entire tax system of the Archipelago, in order to increase the base of taxpayers and combat tax fraud, among other aspects.

In this sense, the Draft General Budget Law of the Autonomous Community for next year contemplates an allocation for the Canary Islands Tax Agency of 51 million euros, four million more than in the current year, which represents an increase of 8.6 percent.

In addition, the Budgets will incorporate another novelty next year in relation to the Tax Agency, so that 0.5 percent of the revenue obtained will be used to finance the increase in operating expenses and investments that may occur as a result of the increase in its own activity.

Of the expenditure authorized today, the largest amount corresponds to the executive collection service, with 11.8 million euros, and the tax information service, with 10.8. This is followed by the IT service, with 4.6 million, and the notification service, with 1.4.

On the other hand, the Government also authorized today the expenditure of 2.4 million euros for the extension of the contract for the support and maintenance service of the Economic Financial System of the Autonomous Community of the Canary Islands (SEFlogiC) until 2021.