29/07/24

GREECE: Greece’s Tax Authority Leverages Digital Technologies to Combat Tax Evasion

As published on: greekcitytimes.com, Monday 29 July, 2024. 

Since the beginning of 2024, Greece’s tax authority, AADE, has been utilizing digital technologies to identify potential cases of tax evasion and prepare to issue fines and surcharges.

According to an AMNA article, AADE has flagged 1,100 individuals whose declared incomes do not align with their spending, bank deposits, or investment accounts.

Current Status
AADE has issued warning notices to these individuals, informing them that they will be audited. They must be ready to justify the significant discrepancies between their reported income and actual expenses.

Should these individuals fail to provide satisfactory explanations, they will face taxes, fines, and surcharges. Using digital tools, AADE can now access data from financial institutions on deposits, investment accounts, loans, grants, credit and prepaid cards, safe deposit boxes, e-wallets, and more to verify the legitimacy of their living expenses.

AMNA reports that digital wallets and services like PayPal are particularly targeted by AADE.

If discrepancies are found, a tax rate of 33% will be imposed on the difference, along with fines, surcharges, and a special solidarity contribution, resulting in a total tax burden exceeding 50%. Any unexplained funds in a bank account will automatically be considered an increase in wealth.

Complaints of Tax Evasion
Earlier this year, AADE received 158,939 complaints from citizens regarding suspected tax evasion and customs violations. Reports included fake receipts, smuggling, and corruption, prompting the Hellenic Revenue Service to conduct focused tax audits to uncover violators.

Recently, Greece’s tax bureau made a significant breakthrough, uncovering 287 Chinese-owned retail businesses, primarily in apparel and footwear, involved in systemic tax evasion. This operation, dubbed ‘Paper Dragon,’ highlights the ongoing efforts to tackle tax fraud.

Tags

Greece Tax Authority Digital Technologies Tax Evasion Regulation