Tax office

With an integrated network of electronic crossings, transaction controls, leveraging technology and information that can be extracted without human intervention through a special algorithm, the Ministry of National Economy and Finance and the Independent Public Revenue Authority aim to limit tax evasion, increase collection of taxes and the reduction of overdue debts to the State which exceed 107 billion euros.

In fact, with regard to the number of people who owe the tax office, from the latest available data from the AADE it appears that out of a total of 3,878,712 debtors, more than 9,300 VAT taxpayers owe the State more than 1 million euros each and a total of 82 billion euros, while for debts up to 10,000 euros the number of debtors amounts to approximately 3,500,000 people, making up 90% of the total.

The interface with POS

The interconnection of cash registers with POS from April 1 is the most important step so that the tax control mechanism can then cross-check whether payments made with plastic money are also reflected in the accounting books of businesses.

For the first time, the auditors of AADE will be able to cross-check in real time the transactions recorded by the banking system through the use of POS and at the same time find out whether these transactions have been transferred to the electronic books of the companies. Once a card payment is made, the receipt will be automatically issued by the cash register without human intervention. This alone is a big step so that it is not at the discretion of the employee of a business to issue a receipt or not when the payment of the transaction is made with plastic money.

Over 250,000 connections

So far, more than 250,000 interconnections have been completed by the obliged companies, meeting the goal set by the Ministry of National Economy and Finance and the AADE.

However, there are also 17,000 companies that did not meet their obligations under the law at all and for them the audit procedures have already started and the fines that will be imposed on them will be quite severe. In particular, a fine of 10,000 euros is provided for if they follow a simple bookkeeping system and 20,000 euros if they follow a double book bookkeeping system. These fines are halved for businesses, which are established in settlements with a population of up to 500 inhabitants and on islands with a population of up to 3,100 inhabitants (excluding tourist ones). In case of recurrence within five years, the fines are doubled and for each subsequent same violation they are tripled.

The businesses in Teiresias

According to a recent announcement by the Ministry of Finance, 3,000 businesses are expected to be connected in the near future, whose suppliers did not provide them with POS terminals due to low credit ratings.

In a provision included in the bill for changes to justice and passed on Wednesday, May 1, providers are now obliged to give POS to businesses registered in Teiresias, under specific conditions. In fact, the Minister of National Economy and Finance, Mr. Kostis Hatzidakis, during his speech from the floor of the Parliament, stated that “if we remained inactive we would send the message to all the rest that they should not comply with their obligations in order to escape from the tax authorities ». The regulation concerns about 3,000 businesses, while in case of violation, a fine of 1,000 euros per business will be imposed on the providers.

The old systems

Also, 7,500 businesses with old cash register and/or POS systems, which are incompatible with each other and need immediate replacement, while they rushed to interconnect, this was not possible due to incompatibility of cash register and POS systems. For these businesses only, a window of time is given until June 10 to replace their cash register and/or POS, where necessary, in order to complete the interface successfully. An electronic message has already been sent to these businesses by AADE, which informs them of all the above, while approximately 30,000 seasonal businesses have a deadline to connect their systems until the day of their opening.

The 17,000 who turned their backs…

For the 17,000 businesses that have currently turned their backs on the changes enacted by the Ministry of Finance, AADE is already in contact with them in order to present the reasons for their non-response and then, if they do not prove reasons of force majeure, they will the appropriate fine shall be imposed on them. It is recalled that the first fines have already been imposed on corresponding companies with a turnover of more than 1 million euros and

more are going to be imposed in the coming days and on other businesses regardless of turnover.

However, in the months of May and June, the burden falls on the completion of the project of connecting the cash registers with ERP software to the POS. Businesses that use a cash register system with ERP software are reminded that they have until May 31st and in case of a scheduled appointment for the purpose of interconnection within June 2024 until the end of that month. The relevant platform for setting appointments has already been opened.

New control techniques – speeding up procedures

Important changes in the way tax audits are carried out and also in the times they must have been carried out are foreseen in the new provisions of the “Tax Procedure Code” bill that has been put out for public consultation.

Now, a maximum time limit is set for the completion of the tax audit, in principle one year from the notification of the audit order with the possibility of extension for 6 months if the audit has started in the meantime and another 6 months provided that during this period it is possible to complete the audit. Today there is no provision for the maximum duration of the audit, which is determined by the officials who carry it out.

Also, the possibility of interim tax assessment is established, in cases where there is a combination of criteria from which there is a direct and imminent risk of tax evasion (e.g. seasonal newly established businesses, or when there are specific indications that the taxpayer intends to leave the country). Today, there is a relevant provision in force for the preventive determination of the tax, which, however, is not practically applied, as it only concerns cases where there is evidence of fleeing the country.

At the same time, new methods of indirect determination of taxable material are applied where the tax authorities can determine it by applying one or more technical controls based on the principle of ratios, the analysis of the taxpayer’s liquidity, the net worth of the taxpayer, the relationship of the sale price to the total turnover volume and the amount of bank deposits and cash expenditures. With these techniques, taxpayers’ taxable income, gross receipts, outflows, and taxable profits can be determined.

Source OT