‘Forgotten’ income notices on the way
More than 20,000 taxpayers are being asked to settle the bill for past undeclared earnings
More than 20,000 notices for “forgotten” past income are being sent out by the Independent Public Revenue Authority (AADE) to taxpayers who have been found to have concealed income or not submitted returns. The tax will be calculated “on an estimated basis” using data and information available to the tax office.
According to AADE, these taxpayers include employees and pensioners with undeclared back payments and salaries, landlords with undeclared income from the rental of real estate, and individuals who receive earnings from abroad.
Tax authorities are specifically cross-checking electronic records of salary or pension statements, remuneration from business activity and income from dividends, interest and royalties.
The checks are also using available data relating to other income and objective living expenses or acquisition of assets, which are sent annually or included in the last income tax return submitted before the year for which the act of estimated tax assessment is issued.
The property statements for the year in question, as derived from AADE’s Integrated Information System for Property Inventory, are also being scrutinized, as are the electronic databases available to AADE. These may relate to the exercise of professional or business activities, as well as data received in the framework of the exchange of information for the implementation of international administrative cooperation in the field of direct taxation. Any information available from third parties is also being gleaned.
The tax authority will issue an estimated determination of personal income tax for those who forgot or neglected to submit their tax return.
The tax assessment notice states that it was issued as a result of the taxpayer’s inability to submit a tax return by the specified deadline. It must also specify the information it considered up to that date in order to make an estimated determination of the tax liability.
The assessment, along with the tax and penalty assessments, will then be sent to the taxpayer, who will receive a notice of tax payment in his or her personal mailbox via the myAADE digital platform.
Following the issuance of the act of estimated tax assessment, the taxpayer may file an income tax return with the competent tax authority, along with the required supporting papers. The taxpayer has the right to file an appeal against the act of estimated tax assessment within 30 days.
As for property owners, the tax office obtained data from the platforms (Airbnb, Booking etc) to conduct cross-checks with tax filings.
