“And now intersections and extensive checks.” This is the mandate of the Independent Public Audit Authority to all relevant agencies after the completion of the submission of tax returns by approximately 9,000,000 citizens.
In total, until midnight on Friday 2 August (deadline for submission of declarations), the TAXIS system had received 6,543,890 E1 forms (basic income tax return), 3,290,174 E2 forms (detailed statement for property leases) and 1,532,645 E3 forms (statement of financial data from economic activity).
The tax office
Of all the tax returns that were submitted on time, one in two or 45.7% have a zero settlement, i.e. 2,990,557 taxpayers (obligors or their spouses) will not pay any additional amount of tax.
On the contrary, for one in three tax declarations (35.02% of the total) a debit settlement has been issued, with the result that for 2,291,670 declarations the average additional tax amounts to 1,992 euros and a total of 4.56 billion euros.
On the other hand, 1 in 5 taxpayers are lucky as they received a credit settlement. In particular, out of a total of 6,543,890 tax returns, a tax refund was issued for 1,261,662. The total amount of refund that will be given is 460.4 million euros and the average amount is 365 euros.
The AADE algorithm
Upon completion of the submission of the declarations, the tax office’s algorithm immediately gets to work, which draws data from the tax declarations of employees, pensioners, professionals, farmers, income earners, but also from bank accounts, the E9 and the land register, anonymous or named complaints, statements from where you are related, etc.
Who are being controlled?
The cross-checks and controls will be targeted either randomly or because there is specific evidence and suspicions that they have fallen into tax evasion, self-employed people who have declared gross income or profits lower than the minimum assumed income, property owners who declare empty apartments or rent them out from 12 months a year, those who show electronic receipts close to the level of their actual incomes, those who invoked capital consumption of past years to justify presumptions or purchase of assets. The tax office will, in any case, also obtain data from bank accounts, which it will then cross-check with the declared incomes not only of the current year but also of previous years.
Freelancers
As for the self-employed, the IRS algorithm will target cases where declared gross income or net profits are defiantly lower than the minimum presumptive incomes determined by the IRS formula. Someone will have an even greater chance of being audited if the gross income they declare is below the minimum profits that the tax authorities consider they should have declared.
The Independent Public Revenue Authority will automatically cross-check the data entered in the codes of the E1 form and depending on the data it has at its disposal from various databases will call the taxpayers for clarifications and if they are not convinced by them will proceed with the immediate issuance of a tax authority order control.
Deposits – interest – dividends
The amounts of interest on deposits and repos acquired by the natural person during the previous year and the tax withheld as well as details of bank accounts, which cumulatively within the previous year showed movements of more than 100,000 euros or the balance of which is more than 200,000 euros are among the intersections that the tax services will carry out.
Dividends and leasing
Also, the dividends paid to natural and legal persons within 2023, for which the Hellenic Stock Exchange SA (HEXAE) discloses the relevant data, as well as the sums of money paid by natural persons to credit institutions, credit companies and finance companies financial leasing for interest-based amortization of loans (housing, consumer, etc.), including accrued and paid interest, overdue interest, etc. will be checked to see if they correspond to the actual financial transactions of the taxpayer.
Even fixed and mobile telephony tariffs, electricity tariffs and how much water someone consumes are included in the AADE algorithm and may result in scams, as characteristically they report competently. A typical example is someone who paid more than 1,000 euros annually to EYDAP and was found to have an undeclared pool.
Income from real estate
Where, however, special weight will be given to the incomes from real estate and if these coincide with the incomes declared by the tenants or present on the Airbnb, Booking, etc. platforms. Particularly worried should be property owners who declare empty apartments but appear to electricity providers to have consumed enough electricity in the previous year, or those who show on an annual basis that they rent out the apartments they own for less than 12 months. In these cases the IRS algorithm is very likely to put them on a checklist.
Electronic receipts
According to information, those who are at risk of being audited are those who declare expenses with electronic payment methods in codes 049 – 050 close to the amount of their real incomes. Essentially, that is, that they have no money left for any other purchase or expense. Also, those who show large exclusions in the said codes in the amounts they declare with those that AADE has collected from the banks and provides as information when completing the tax return, are also expected to be targeted.
It is recalled that in accordance with what is in force, employees, pensioners, farmers by their main occupation, self-employed and those who show income from rents must on an annual basis spend with electronic means of payment for the purchase of goods and the provision of services a total amount equal to 30% of of his annual individual actual or imputed income (whichever is higher). Otherwise they will pay an extra tax of 22% for the missing receipts.
Evidence and consumption of capital
Thousands of taxpayers every year in order to justify presumptions or purchase of assets proceed to use up capital of past years. But the auditing authorities may initially accept the amounts written in the relevant codes as correct, but the final reason will be given when the corresponding crossings are made.
SOURCE: ot.gr
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