Taxpayers who admit to concealing income and other tax violations identified by the tax audit mechanism will have the opportunity to close open accounts with the tax office, earning a 25% to 50% reduction in fines.
With the new permanent out-of-court settlement process which is activated from October 1, 2024, those who find themselves with the Tax Administration away from the courtrooms will be able to achieve significant discounts on the “bells” that the Tax Office will have imposed on them.
Tax and fines
Discounts of 25% – 50% will only be calculated on fines for non-filing or inaccurate reporting.
These fines are imposed at rates of 10%-50% on the taxes resulting from overdue initial returns or on the tax differences resulting from overdue amending returns or on the additional taxes charged by the auditors when they find that taxable material has been concealed due to non-submission of returns or submitting inaccurate statements.
Especially for VAT, fines are calculated at a rate of 50%.
The reductions
With the out-of-court settlement, the Tax Office reduces the fines as follows:
- 50% if the confession of violations is made after the notification of the control order or invitation to provide information and before the deadline for submitting an overdue initial or amending declaration from the notification of a temporary corrective assessment of the tax.
- 40% after the notification of a final act of corrective tax assessment and while the deadline for filing an appeal before the Dispute Resolution Directorate (DDR) lasts.
- 30% after notification of the TEN’s decision or the expiry of the period for the implicit rejection and while the period for filing an appeal before a competent administrative court of first instance lasts.
- 25% after the initiation of a judicial appeal and until the day before the originally set date for the introduction of the case for discussion before the competent administrative court.
Advance
In any case, after the reduction of the fines, 25% of the total debt must be paid within 3 days of the acceptance of the relevant application which must be submitted electronically through an online platform, the activation of which is expected on October 1, 2024. The rest debt, after the reduction it can be paid off in up to 12 interest-bearing monthly installments.
Alternatively, it can be repaid in up to 48 interest-bearing monthly installments with the fixed arrangement.
Taxpayers who have already received, or will receive, a tax slap and fines for tax offenses by September 30 will be able to get a 50% reduction in charges if they hurry to file amended returns showing hidden income and paying the additional tax.
The transitional arrangement concerns businesses and self-employed persons who will be subject to a tax audit until September 30, 2024 and provided that after notification of the audit order:
- Submit overdue initial or amending returns for income tax, VAT and other tax items.
- Declare the concealed taxable material which the audit is going to determine or which will have been imputed based on the temporary act of corrective tax determination.
- Pay the amounts of additional taxes resulting from these declarations within 30 days from the notification of the temporary act of corrective tax assessment.
SOURCE: ot.gr
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