Taxman online with banks

Millions of bank accounts of taxpayers and companies will soon be targeted by the tax authorities, with the use of the new system which will scan all their movements.

This is the Bank Account Nexus Crosscheck Application (BANCAPP), which automated the process of providing data and information concerning audited natural and legal persons. The tests between the Independent Authority for Public Revenue (AADE), the Hellenic Bank Association and credit institutions have already started and in the near future it will be put into operation. The systemic banks have said they are ready for the activation of the new system, while the smaller banks are expected to request an extension.

Through BANCAPP, the data of the file of financial products and analytical financial transactions, the movements of bank accounts, payment accounts and other financial products and analytical financial transactions of taxpayers for which a control order has been issued are collected and used. The audit concerns both deposits, repos, insurance products, derivatives, shares as well as loans and safe deposit boxes.

As reported by the tax administration, with the issuance of an income check order, automatically, without human intervention, a request will be sent to BANCAPP. Within two days, AADE will have the answers for the bank accounts and assets of the last five years.

These data will be cross-referenced with the tax returns to establish whether the amount of movable assets and living expenses are justified by the incomes declared. If not, it will be considered an unjustified excess property and the extra amount will be taxed at a rate of 33%.

For the removal of confidentiality, through the system, the prerequisite is the knowledge and completion of the tax registration number of the taxpayers for which the removal of bank confidentiality is carried out, while in order to submit a removal request all the necessary approval procedures for the lifting of bank secrecy must be completed.