Taxpayers under scrutiny

The first taxpayers declaring incomes below 10,000 euros per year yet found to have a much higher cost of living and revenues from abroad have been summoned by their tax offices.

They have been called in to justify the discrepancies. If they fail to do so, they will have to pay additional taxes and fines. According to sources, similar summons are expected to be sent in the coming days to hundreds of professionals from the 20,000 that emerged with significant discrepancies or suspicious transactions.

These discrepancies emerged as part of a large cross-checking operation carried out by the Independent Authority for Public Revenue (AADE) on 3.8 million tax returns, where major differences were identified between the declared incomes and the living expenses incurred in the same year.

Those of the 20,000 who fail to provide a convincing explanation to the tax authorities for the difference found will face scrutiny to confirm the results of the cross-check and impose the taxes and fines provided for in cases of tax evasion.

A total of 80 million data were cross-referenced in 3.8 million tax returns of 2022 with annual family incomes up to €10,000.

By comparing declared incomes with the cost of living as recorded electronically, AADE aimed to identify those who hide their true incomes. Data from bank account movements, card payments, electricity and cellphone bills were used, as well as information on various payments that were compared with the incomes declared by taxpayers. The cross-check netted in the first phase 440,000 cases, out of which there were big differences detected in about 20,000 cases; they are the ones to be initially invited for explanations.

For the other 420,000 cases, the discrepancy between expenses and income was small and at this stage it is not deemed necessary to check them.

After the explanation process, the final sieving will take place and a new list of taxpayers will be compiled that will be scrutinized by the tax auditing mechanism.