AADE: Amazing yet Greek! Better foreclosure than…debt settlement

AADEOnce again, the Greek economic system proves to be riddled with loopholes and misspellings.

The forfeiture of deposits, salaries, annuities, rents, and other sums results in more than settlements of debts owed to the IRS.

This results from the AADE report, which records the evolution of public delinquent debt management, with the main conclusion being that the arrangements relate to minimal delinquent debt to the public.

However, from the AADE’s report tables, it appears that more amounts are collected from forfeiture than are collected from regulations.

In more detail, in 2022, 5.17 billion euros of overdue debts were collected to the tax administration.

50.4% of the total collections of 5.17 billion euros come from the “old real” overdue balance of the tax authority’s debts, as formed up to 30/11/2021, i.e. from a total amount of 84, 3 billion euros. And the remaining 49.6% of the delinquent balance made up from 1/12/2021 to 12/31/2022.

Of the total collections of overdue debts in 2022, 51.7%, i.e. 2.67 billion euros, came from confiscation in the hands of third parties, i.e. from confiscation of bank deposits, salaries, pensions, rents, etc. Of debtors, the remaining 48.3%, or €2.5 billion, comes from installment arrangements.

More specifically:

• 1.88 billion euros were collected from the settlement of 120 installments of Law 4646/2019
• 0.24 billion euros were collected from the preliminary regulation of the 120th installment of Law 4611/2019, as it was formed before it was amended by Law 4646/2019.
• 200 million euros were collected from the regulation of 36 or 72 installments of Law 4821/2021, for debts that arose during the “pandemic” period of the Coronavirus.
• 150 million euros were collected from the regulation of 100 installments of Law 4321/2015.
• But the regulations seem to be for small debtors, while large companies that owe nearly 90 billion euros are neither regulated nor paid.

Of the €113.75 billion in debt due at the end of December 2022, in some arrangements, only €4.7 billion or 4.1% was debt.

It is reported Sin revealed that almost all auctions are failures, with auction programs in 2022 reaching 1,201, but auctions awarded to outbid bidders for 2022 were only 3!

When analyzing the adjusted balance by debt class, the following is noted:

• In debt categories up to €300,000, the majority of the adjusted balance, i.e. 73.4% (€3,441.3 million), has been collected.
• In debt categories over €300,000, 26.6% of the structured balance has been collected, i.e. €1,247.7 million.

AADE: The goal of tax evasion! They put … VAR in tax audits!

Other AADE tricks bring the VAR (!) to tax audit.

Video surveillance of tax audits and periodic transfers of tax and customs officials is foreseen, among other things, in the AADE plan to ensure integrity and transparency in the operation of tax services.

This is the action plan to enhance the transparency and integrity of AADE services for the period 2023-2025, with the aim of combating corruption and enhancing the credibility of tax audits.

Each year, dozens of complaints are filed against tax officials, for abuse of jurisdiction or for corruption by aggrieved taxpayers, which are examined by the AADE’s Internal Affairs Department or competent prosecutors, without any sense that they have all been proven.

From now on, delinquency control will be preventive, because after the AADE agreement with the National Transparency Authority (NTA), the control of DOU personnel and control centers will be more stifling and will be subject to technical supervision. That is, while transfers of tax personnel will be frequent, so as not to be “misidentified” with the auditor.

As stated in the protocol of cooperation between AADE and the National Transparency Authority (NTA) signed by NTA Governor, Giorgos Petsilis and NTA Deputy Governor, Alexandra Rogako, there will be constant communication and exchange of information and knowledge with contact points to coordinate between the two entities in the areas of internal control, corruption and risk management. fraud, as well as the protection of personal data.

It also envisages developing an action plan to enhance the transparency and integrity of services for the period 2023-2025, which will include:

• Videography of physical controls. The auditors who will be conducting corporate tax audits will have a camera recording the audit process. The camera records will be available to both the officials and the referee in the event of any dispute or complaint afterwards, as is the case in football stadiums using VAR. Also, in special rooms, with the registered procedure, meetings of taxpayers at control centers with employees will take place.
• Circular movement system for inspectors at vital customs offices in the country. This means that tax officials often move from one service to another and from one region to another for obvious reasons.
• Strengthening customs control by economic inspectors
• Establish and operate an integrity advisor for all AADE services
• Strengthening and strengthening the integrity and internal control system
• Enhance fraud and corruption investigations, disciplinary examinations and risk assessments
• Training and educating employees on integrity issues based on good international practices and modern tools
• Evaluating the impact of the procedures and measuring the corruption perception index at the beginning and end of the procedures
• complaints in 2022
• The AADE Operational Plan for 2022 envisages the implementation of further checks by the Department of Home Affairs in order to identify cases of corruption, using citizen complaints or information held by the service.

The results of the audits will be announced soon with the publication of the action plan. The 2022 Action Plan stipulates:

• Conduct 40 internal audits (at least up to the relevant interim reporting stage) on the procedures and functions of the AADE services.
• Conducted 80 asset checks for supervisors and employees.
• Implementation of 30 on-site spot checks in services.
• Conducting 100 examinations to identify criminal and disciplinary violations of the department’s employees.
• Evaluate and handle at least 90% of all complaints brought to the attention of the Department of Home Affairs.
• Conducting 11 targeted financial and administrative reviews of public accounts and public administrations.
• Implementation of 4 administrative audits for each tax area.

AADE: He’s gone mad… officially – he doesn’t even allow money from parents to kids!

AADE: Everything and everyone is now controlled by AADE where the parents are now to blame!

The Independent Authority for Public Revenue (AADE) targets money transfers between relatives.

Cases of those who transfer money to their family members will be investigated

AADE will target sales of real estate, parental benefits, inheritances, high-risk donations for black money or tax evasion, and according to instructions already provided, of all cases to be checked, at least 70% relate to tax years, uses, issues, periods, or obligations of the last five years.

A partial proportion of 75% of audits will, in principle, relate to audits in the past three years for which the deadline for filing an income tax return has expired.

Especially for those who have benefited from the provisions on the tax exemption limit of 800,000 euros on donations between close relatives and have carried out successive – triple – transactions in order to transfer sums of money or assets with independent tax avoidance of 20% -40% or much more tax free low is made Provided on a case by case basis.

In detail according to the new instructions of AADE President Giorgos Pitsilis for the 2023 Audit Mechanism:

1. 25,500 full and partial tax audits will be conducted by the audit services of the General Directorate of Tax Administration.
2. At least 70% of the cases to be audited relate to tax years, years, cases, periods, or obligations for the past five years. At least 75% of audits will in principle relate to audits within the past three years, for which the deadline for filing an income tax return has expired.
3. 2,500 files will be “opened” to prove the correct fulfillment of obligations related to the taxation of transfers of property, inheritance, donations and parental benefits.
4. All cases of Capital Transfer Tax for which the deadline for the Tax Department to issue the Corrective Tax Estimate expires on 12/31/2023 that relates to real estate that is not included in the objective value determination system and that has not been accepted by the Taxpayer Preliminary Assessment – Provisional Value of DOY ..
5. Regardless of whether it is prioritized or not, it is directly controlled:

Tax refund issues.

Cases related to audits based on a sample, according to the provisions specified in the provisions and decisions such as indicative beneficiaries who obtained a VAT refund, as well as beneficiaries of legal persons and legal entities who recovered income tax without an audit.

Cases in which a statement of tax audit results and provisional determination of taxes and fines has been issued.

Cases arising from prosecution orders, investigative orders and pre-investigation work, including requests and orders for tax audits that have arisen from an order issued by any prosecuting or judicial authority and are kept in the AADE.

Cases where the issuance of a memorandum of decisions and temporary determination of tax and fine is imminent.

Issues related to Internal Revenue Service investigation reports.

Cases related to conclusive reports were referred to the AADE by the Economic Crimes Investigation Directorate.

DYO, EL.KE, and YEDDE cases related to the implementation of a partial on-site audit to verify fulfillment of tax obligations, bookkeeping and issuance of tax information, for taxpayers carrying out any activity or trade in commodities.

Cases related to the verification of transactions within the community (VIES), cases of multilateral (simultaneous) checks conducted by Greek and foreign tax authorities.

Cases of mutual administrative assistance upon request.

Compliance audit cases for Greek financial institutions reporting with due diligence and information submission rules