ECONOMY

Newborns to get tax ID (AFM) as of Jan 2016

newborns-to-get-tax-id-afm-as-of-jan-2016

From January 2016, taxpayers will be able to access the electronic TaxisNet system with their personal code and verify new items being included in their tax assessments, such as bank deposits in Greece, properties owned and fees paid to private schools. 

If the taxpayer disagrees with any part of the tax authority’s assessment, they can contend it and corrections can be made as long as the necessary documents are provided. In a second phase planned for 2017, art and jewelry will be added to the assessment once valued.

The Ministry of Finance believes that this method will give a clearer picture of the actual wealth of each taxpayer, thus significantly reducing tax evasion. Children born after January 1, 2016 will also receive a tax identification number (AFM).

In cases where undeclared income is discovered, a retroactive tax rate will be applied corresponding with the time the income was received and taxes evaded. An indirect confiscation of such income may also be incurred and the fines imposed could reach up to 100 percent of the undeclared amount.

Any changes to a taxpayers’ assets should be proven with legitimate documents and justified by their income, as reflected in their annual income tax returns.