Tax refunds go unclaimed

Tens of millions of euros related to value-added tax refunds remain unclaimed from the tax authorities. According to information, the traces of the beneficiaries have been lost by the tax office and none of them has come forward to inquire about them.

According to the data of the Ministry of National Economy and Finance, the total amount of outstanding tax refunds in December 2023 reached 558 million euros, of which €274 million concern refunds that have become overdue, as 90 days have passed since the issuance of the Individual Discount Sheet (AFEK), while €284 million concerns pending tax refunds that are not overdue, since the corresponding period of 90 days has not passed.

Of the outstanding refunds that have become overdue (more than 90 days) – i.e. out of the €274 million – €241 million comprises amounts that cannot be repaid due mainly to external factors, such as the non-response of the beneficiaries or non-presentation of the necessary supporting documents.

As can be seen from the data, recently the tax office has accelerated the return procedures of both income tax and VAT. In fact, the “golden list” of “clean” businesses and professionals to whom the tax authorities immediately credit tax refunds has been established. 

The “golden list” includes, based on criteria and conditions, companies that have been audited in the past, have no history of tax offenses and regarding which there are no indications of involvement in fraud. The list includes companies with the following characteristics:

• They have been audited in the last three tax years and the total amount returned, following audits, does not differ from the total requested amount by any more than 5%.

• They have not committed tax or customs violations.

• They are not classified as suspected of participating in fraud involving transactions within the European Union, following the application of risk analysis criteria, which are examined at a central level exclusively and are not made public.