Filenews 25 June 2023 - by Eleftheria Paizanou
From 2020 to 2022, 2,515 large taxpayers were caught in the Tax Department's networks, with debts amounting to €203.1 million.
Fewer taxpayers who fall into the high-risk category due to their professional activities were identified last year by the Tax Department taxpayers, as part of audits conducted by the Office of Large Taxpayers.
The checks were carried out for compliance by the most important taxpayers, i.e. those who have spared the state large debts. Specifically, in 2022, the competent department identified 598 inconsistent large taxpayers, who were subject to taxes amounting to €33.4 million. That is, the average tax imposed on each taxpayer was €55,000.
In detail, in 2022, tax audit teams, consisting of the unit of large taxpayers and officers of the department's district offices, identified 335 large taxpayers who owed direct taxation, i.e. income tax, capital gains tax, special contribution for defense, etc., totalling €30.5 million. In addition, 563 taxpayers who owed a few thousand euros of VAT were subject to taxes of €2.9 million.
Compared to the two previous years, i.e. 2020 and 2021, both the number of inconsistent taxpayers identified and the taxation collected by the state from this category of citizens are at lower levels.
According to data from the Tax Department, in 2021 979 large taxpayers were caught in the tax pincers, with the state collecting €88.2 million. and in 2020 another 938 taxpayers, who were asked to pay €81.5 million. In detail, in 2021, 455 individuals and legal entities were assessed direct tax taxes, amounting to €83.5 million. Also, another 524 large taxpayers, who had VAT debts, were assessed a tax amount of €2.6 million. In 2020, 397 taxpayers with direct tax debts were identified, to whom an amount of €78.3 million was established. Another 538 taxpayers who had not paid VAT were assessed €3.2 million.
Therefore, from 2020 to 2022, a total of 2,515 taxpayers have been found falling into this category, who retroactively paid taxes to the state amounting to €203.1 million.
It is worth noting that tax audits are either done individually for one or more types of taxes or are done for one or more tax years/periods at the same time, depending on the case and the picture presented by the taxpayer and the findings of the department.
The findings of the audits
The analysis of the data resulted in the following findings:
- Last year, a total of 40 cases of tax fraud were investigated, resulting in €2.2 million in tax assessments. In 2021, 73 cases of tax fraud were investigated and taxes of €9 million were imposed. It is worth noting that in addition to the audits carried out by the Tax Fraud Investigation Unit, audit visits are also carried out, in cooperation with the district offices for indirect taxation issues. Specifically, for the year 2022, in cooperation with the district offices, 3 audits were carried out, resulting in a tax amount of €228,292. For the year 2021, in cooperation with the district offices, 20 audits were carried out resulting in a tax amount of €1.8 million. and a €55,255 compromise fine.
- Last year, 468 audits were carried out on inconsistent legal and natural persons for VAT cases, in which taxes amounting to €11.5 million were assessed. Moreover, in 2021, these audits were more numerous and taxes of €9.4 million were imposed. to 556 taxpayers.
- Under the microscope of tax officials, 438 cases of VAT refund were also found and taxes of €9.9 million were imposed. It is worth noting that last year these audits were more than in 2021, when 334 such cases were examined, for which taxes of €2.3 million were imposed.
- As part of the audits in 2022, 827 capital gains statements were also examined, resulting in €4.2 million in taxes. In 2021, 587 capital gains statements were examined, during which taxes of €3.2 million were imposed.
- Last year, 26,202 financial accounts were examined, resulting in €58.1 million in taxes. In 2021, 29,271 financial accounts were examined, while taxes imposed amounted to €48.9 million.
- In 2022, 3,609 visits were also made to comply with VAT legislation, during which a tax of €3.5 million was assessed. In 2021, 4,896 visits were made and VAT of €4.5 million was imposed.
Analysis of deceased debtors
At the same time, an analysis of the debtors of the Tax Department was carried out to determine whether it is possible to collect the amounts due. The microscope found 889 cases of deceased persons, with a date of death before April 27, 2018. Of these cases, 274 cases were sent to the Technical Committee for Write-offs, with a total debt of €128,867. Also, for 34 cases with a total debt amount of €1.4 million. A proposal was made for a review of direct tax returns and for 109 cases, with a total debt of €4.1 million, collection measures are expected to be taken. Finally, 472 cases did not qualify for any action.
They impose blanket taxes for reduced VAT
In the meantime, the Tax Department, aiming to increase voluntary tax compliance, has also launched taxpayer compliance campaigns, imposing financial penalties on those who do not comply with their tax obligations and violate the relevant legislation. During 2022, the Tax Department has carried out on-the-spot checks to verify the correct application of the reduced VAT rate for the purchase/construction of a house and sent compliance letters to taxpayers.
Specifically, between October and December 2022, the Tax Department conducted a nationwide tax compliance campaign using the method of on-the-spot checks on residences, to ascertain the correct application of the legislation governing the reduced VAT rate of 5% for the purchase or construction of a main residence. The officers of the department carried out 2,171 on-the-spot checks, during which 1,039 persons were identified, of which 391 were found not to be the eligible applicants.
These taxpayers were subject to an additional tax of €23.4 million, which is the difference between the standard VAT rate of 19% and the reduced VAT rate of 5%. At the same time, during the same period, several persons who were beneficiaries and no longer comply with the provisions of the legislation voluntarily visited the department, paying additional VAT amounting to €2.8 million. These taxpayers, in order to benefit from the reduced VAT, had initially stated that they would use the building as their main residence, but in the process they rented it, reaping financial benefit.
At the same time, more than 3,000 letters have been sent for taxpayers' compliance with various other tax categories.
Delayed revenue in the red
Last year, tax debts to the state hit red, reaching €3.2 billion, compared to €2.7 billion. in 2021. At the end of 2022, the amount of debt immediately due before collection measures was €1.8 billion, including interest and charges, compared to the corresponding amount of €1.5 billion in the corresponding period in 2021. Total taxes under collection measures in December 2022 were €757.9 million compared to €696.8 million. in December 2021. The net amount of taxes due before the implementation of the bank account seizure measure last year was €1 billion, compared to €774. 6 million which was in 2021. The net tax amount immediately payable without collection measures at the end of 2022 amounted to €1 billion.
