Suspicious returns in tax authority’s focus

Suspicious returns in tax authority’s focus

Freelancers and the self-employed are being targeted by the control mechanism, especially those who declare incomes up to 10,000 euros, while at the same time having expenses that are twice as much.

Those who in the previous year presented large discrepancies in their declarations (between income and expenses) will be checked as a matter of priority and the rest will follow.

According to the plan of the tax administration (AADE), in the first phase those who had large discrepancies will be checked, followed by those professionals who lead a luxurious life and declare low incomes; finally checks will focus on salary workers who also declare low incomes but there is evidence that they spend much more without using capital from previous years or from the sale of assets.

Based on the above, in the next period, probably after the submission of this year’s tax returns, the multilevel cross-checks will begin.

For the first time, authorities will use the data and information the tax administration has from electronic payments for goods and services, purchases of assets (property, cars), loans, changes in deposits, credit card transactions, expenses in private clinics, tuition fees in private schools, insurance policies, mobile phone and electricity bill payments and even details of their vacations, specifically from the Booking and Airbnb platforms.

“From the very beginning, the Finance Ministry has set tackling tax evasion as one of its priorities. One of the most important tools in this field is the utilization of the data that the institutional framework allows to be collected in AADE. Where cases of flagrant tax evasion are found, focused checks will be carried out,” Deputy Minister of Economy and Finance Haris Theocharis tells Kathimerini.

“We will give all our strength to this battle, a battle that is inextricably linked to justice and development,” he emphasizes.

As Theocharis had stated in previous days, tax evasion in Greece is estimated at around €8-10 billion, of which almost half can be collected, namely €4-5 billion. As revealed by AADE Director Giorgos Pitsilis on Skai TV, the statements suspected of tax evasion will be thoroughly checked in the fall. 

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