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tax evasion

AADE: Targeting black incomes – Cases that are time-barred – 2024-10-05 01:55:46

by Ethan Caldwell October 5, 2024

written by Ethan Caldwell

The AADE sends thousands of “rabasaki” with taxes and fines for “sins” of the past to taxpayers who are found to have hidden income or not submitted declarations.

In the “eye” of the tax auditors are employees and pensioners with undeclared retroactive and earnings, taxpayers with earnings from abroad, property owners with undeclared income, professionals who submit zero VAT returns but have significant activity. The open tax cases of 2018 are checked as a matter of priority, while older cases are also checked.

Tax auditors are racing to check as many cases as possible to beat the December 31, 2024 statute of limitations while rushing to send the memos to taxpayers by early December.

It is noted that the statute of limitations for each case is proportional to the category of tax concerned (income, VAT, real estate, etc.) if there is tax evasion or if no tax declaration has been submitted.

How AADE monitors debtors

According to the instructions given by AADE, the tax officials check and cross check:

The electronic records of salary or pension certificates, remuneration from business activity and income from dividends, interest, royalties.
Available data relating to other income and objective costs of living or acquiring assets, which are sent annually or are included in the last prior to the year for which an act of estimated tax determination is issued, a submitted income tax return and in the property statement of each year, as it arises from the Integrated Portfolio Information System of AADE.
The electronic database, which is available at AADE and may concern the exercise of professional or business activity, as well as from data obtained in the context of the exchange of information for the implementation of international administrative cooperation in the field of direct taxation.
Any information available from third parties.

Who does it concern?

In the target of the tax control mechanism are:

Taxpayers who have not submitted a tax return in 2019 for 2018 income.
Taxpayers who have submitted an inaccurate declaration or have not declared retroactive amounts of remuneration received within 2018 and relating to earlier years.
Self-employed people and businesses who have submitted an inaccurate declaration of gross income or expenditure for the 2018 management period.
Owners of rental properties who did not file or filed an inaccurate return for short-term rental income earned in 2018.
Taxpayers with income of foreign origin who did not submit a tax return.

The bill with the extra taxes and fines must have been issued before the expiration of 2024, as according to a decision of the Supreme Court, the public loses the right to impose taxes and fines in the event that it does not notify within the statutory period of limitation to the taxpayer the accounting deed.

Source: ot.gr

#AADE #Targeting #black #incomes #Cases #timebarred

October 5, 2024 0 comments

Business

IRS: How to achieve a “haircut” of up to 50% in fines – 2024-10-04 08:20:38

by Ethan Caldwell October 4, 2024

written by Ethan Caldwell

Taxpayers must fill out a special declaration of confession of the tax offenses they have committed in order to get a “haircut”, at the tax office, of the fines from 25% to 50%.

With the declaration of acceptance of the debt confirmed in the context of the audit, the taxpayers waive the right to appeal to the courts, while they will have to pay immediately, within three days, 25% of the amount that has been confirmed. The remaining amount can be paid in installments which cannot exceed 12.

The statement

In the form called “Declaration of acceptance of actions in the context of the tax audit” interested parties should:

To fill in their personal details (name, VAT number, company name, type of activity, address,
To state that they accept the act of correcting the determination of the tax, fee or levy
To state that within 3 days of notification and receipt of the relevant message in the electronic account inbox they will pay 25% of the main tax and that the remaining amount after deducting 25% and reducing the fines will be paid once or in up to 12 installments.

With the new rules activated from October 1, 2024, taxpayers are given the possibility to accept the debt after the issuance of the “regret” but the deduction is reduced, depending on the stage at which the acceptance will be made. The earlier the declaration of acceptance of the debt is submitted, the greater the discount on fines will be.

The “sorry card” that those who admit the violations will fill out and submit

“Haircut” of fines

Specifically, the new procedure provides for a reduction in fines as follows:

50% if the admission of violations (failure to submit declarations or submission of inaccurate declarations) is made after the issuance and notification of an inspection order or invitation to provide information, and until the deadline for submitting an overdue initial or amending declaration from the notification of a temporary corrective determination of tax. In order to secure the deduction, the audited person should submit the relevant overdue initial or amending declarations before the notification of the act of temporary corrective tax assessment (with the issuance of the audit order) or submit the relevant declarations within 10 days of the notification of the act temporary corrective tax assessment.
40% if the main tax debt is accepted after notification of a definitive corrective tax assessment but before recourse to the Dispute Resolution Division (DDR). The audited person has a period of 30 days from the notification of a final corrective tax assessment to appeal to the TEN and during this time, he can accept the result of the audit and reduce the fine, in order not to risk the rejection of his appeal by the TEN and the certificate of the entire fine.
30% if the main tax debt is accepted before submitting an appeal to a competent administrative court.
25% if the main tax debt is accepted before the start of the discussion before a competent court.

Source: ot.gr

#IRS #achieve #haircut #fines

October 4, 2024 0 comments

Business

Tax evasion: Freelancers are in trouble – 2024-09-29 20:27:40

by Ethan Caldwell September 29, 2024

written by Ethan Caldwell

Tax evasion has become a habit for a non-negligible number of freelancers, as evidenced by tax return data.

A large percentage declare losses, while several report monthly incomes that do not exceed 300 euros. At the Ministry of National Economy and Finance, they estimate that behind these figures there is a significant “reservoir” of undeclared incomes, which, if revealed, can strengthen the state budget and reduce taxes for employees and pensioners.

State interventions

The State’s interventions so far seem to be bearing fruit. As officials from the Ministry and the AADE report, the results are very positive, both from the application of the presumptive method of taxation of incomes, and from the interconnection of cash registers with POS.

The effort does not stop here, as new interventions are launched, such as the complete elimination of discrepancies between declared income and expenses with the data entered in myDATA, continuous checks for the correct operation of the interface of cash registers with POS, acceptance of payments through the IRIS system and the implementation of the digital clientele.

No more spending without a document

Unsubstantiated overspending, which until now has been a common ploy to reduce or even eliminate profits, will cease to exist from 1 January 2025. Until then, from 1 October 2024, acceptable deviations between declared costs and those registered in the myDATA system will be significantly reduced, with the aim of their complete elimination.

According to the planned schedule, from October 1 to December 31, 2024, the revenue discrepancies will be zero, while the acceptable limit for expenses will be reduced to 5%, from 10%-20% that was in place until the end of September. From January 1, 2025, the deviation limits will be completely abolished, both for income and expenses, based on the data transmitted to the myDATA digital platform.

With the complete elimination of these discrepancies, virtual transactions will be ended, as the tax office will recognize for deduction from the gross income only the expenses registered in the system. In addition, the declared income cannot be lower than that obtained through the documents for purchases or provision of services.

The zeroing of allowable variances means that professionals will no longer be able to artificially increase their expenses in order to reduce their taxable income. However, they will be able to add additional revenue and the corresponding VAT in cases where sales invoices have been issued that have not been transmitted to AADE in time due to technical problems or other exceptions, such as low annual turnover.

The new system paves the way for the pre-completion of VAT returns, as the tax administration will be able to automatically calculate the amount of tax to be paid, without the intervention of the taxpayer. The “locking” of VAT returns is expected to contribute to the reduction of the “VAT gap”, i.e. the revenue lost by the state from the non-collection of Value Added Tax. The “VAT gap” has already been reduced by €3 billion, thanks to the increase in electronic transactions and payments.

Income and expense data entered on the myDATA platform will be automatically transferred to tax returns, making the process more transparent and efficient. Thus, after the VAT, the codes of the E3 form, which determines the taxable profits and the amount of the income tax, will also be “locked”.

Permissible limits of deviations

The permissible limits of deviations for VAT in relation to the data registered in myDATA are configured as follows:

* July 1 to September 30, 2024: 10% on income and 20% on expenses.

* October 1 to December 31, 2024: 0% on income and 5% on expenses.

* From January 1, 2025: No deviation in income and expenses in relation to the data entered in the myDATA digital platform.

Digital customer base

AADE is introducing a new electronic process for professionals, implementing the digital client register, which will allow auditors to monitor in real time the activity of taxpayers. This measure will be combined with the interconnection of cash registers with POS, digital waybills and electronic invoices, and is expected to make a significant contribution to the fight against tax evasion, making concealment of turnover almost impossible.

According to the plan, the digital client will be applied to:

* Professionals who offer services to vehicles, such as garages, electricians, body shops, vulcanizers, parts sellers, car washes and vehicle rentals.

* Professionals in the field of events, such as estates, halls, catering and organization companies.

* Private schools, clinics, doctors, lawyers, diagnostic centers and other similar professions.

These professionals will be obliged to electronically record the details of their clients on a platform connected to the AADE, also mentioning the reason for the visit, if it is a new or ongoing provision of services.

IRIS

The informal deadline of the Ministry of National Economy and Finance for the registration of freelancers in the IRIS system ends on Monday, September 30, allowing them to accept payments from their clients. From Tuesday 1 October, the tax enforcement mechanism will start cross-checking, and professionals or self-employed people who do not have an IRIS will face a fine of €1,500.

This service has already gathered more than 530,000 freelancers and sole proprietorships. The data shows a significant increase in the use of IRIS in 2024, as 1 in 2 citizens – i.e. more than 3 million – with web banking enabled have now linked their accounts to this instant payment system.

So far, transactions carried out through the IRIS system in 2024 amounted to 34 million, with a total value of €3.7 billion. This increase is impressive, with rates of 150% and 116% respectively compared to the same period last year.

Controls

AADE has launched extensive audits to determine whether businesses and professionals are complying with the new trading measures. The audits focus on the interconnection of cash registers with POS, the use of a new type of cash register in the catering industry, as well as the implementation of the IRIS direct payment system.

The interconnection of the cash registers with the POS is a key element of the controls, using data from the AADE e-send system. The aim is to ensure that the obligors send the necessary receipts and details of card sales.

Emphasis is also placed on taxi drivers, despite the sharp reactions from the industry, who must place a sticker on the rear right window of the vehicle, where it is written in Greek and English that:

* The driver is obliged to issue a receipt at the end of the journey and accept payment by card.

* The customer is not required to pay in cash.

Source: APE – MEB

#Tax #evasion #Freelancers #trouble

September 29, 2024 0 comments

Business

Economy: New fiscal landscape – Ministry of Finance revenues and surpluses – 2024-09-29 12:40:41

by Ethan Caldwell September 29, 2024

written by Ethan Caldwell

The measures to limit tax evasion fill the state coffers and create new data for the fiscal policy and the goals set for the primary surpluses and debt in the coming years. Already, according to the execution data of this year’s budget, in the eight months the excess of revenues amounted to 1.9 billion euros, while according to the latest estimates of the financial staff, in the coming years the surplus of revenues is expected to rise to 2-2 .5 billion euros on an annual basis.

The new fiscal landscape will be reflected in the 2025 budget projections to be tabled in Parliament in early October as well as in the 2024-2027 medium-term program being discussed with Brussels and expected to be finalized within the next month.

The stamp of these positive developments was given by the Minister of Finance Kostis Hatzidakis with his statements to Bloomberg last week, where he announced that this year’s primary surplus will be higher, at 2.4% of GDP, against the initial forecast of 2.1% of GDP.

The goals for the economy

According to information, the goals of the Ministry of Finance for the primary surplus are expected to move to similar levels in the coming years, raising the bar compared to the forecasts of the medium-term program so far (2.1% of GDP).

These developments, combined with the fact that Greece is growing at a much higher rate than the other EU countries, give the financial staff more flexibility in terms of spending policy without jeopardizing the policy of fiscal discipline and favor the effort to reduce the debt . It is indicative that due to the excess of revenues, this year’s prime ministerial announcements at the TIF included an additional package of relief and aid of 500 million euros in full agreement with the European Union.

“Due to the better-than-expected performance of the budget, we can have a larger increase in spending compared to initial estimates,” Mr. Hatzidakis said in his interview with Bloomberg.

Greece will be able to increase its net spending by “slightly higher than 3%” in 2025 — against the initial forecast of 3% — and continue to increase it at a similar rate until the end of 2028, the minister clarified.

As far as the public debt is concerned, the Ministry of Finance now foresees its reduction by 20 points by the end of 2028. From the levels of 152.7% of the GDP expected to be formed this year, it is estimated that it will be limited to 130% of the GDP, which significantly increases the chances that Greece will drop from the top rung of the EU countries with the highest debt as a percentage of GDP.

Early repayment

In this context, the government is planning a new early repayment of loans from the rescue program with a total value of 8 billion euros ($8.9 billion). This will be the third early repayment of the loan that Greece received in the first rescue program in 2010, known as the Greek Loan Facility.

On the tax evasion front, two important interventions that have given a big boost to state revenues are on the one hand the new way of presumptively determining the income of freelancers, on the other hand the network of measures implemented for digitization and the use of new technologies by AADE for the capture of taxable material. Among these measures are the connection of cash registers with POS, the expansion of electronic transactions, such as the utilization of tax data from the My DATA platform that allow the automation of tax audits.

Source: APE-MEP

#Economy #fiscal #landscape #Ministry #Finance #revenues #surpluses

September 29, 2024 0 comments

World

Hunter Biden pleads guilty to tax evasion; could face jail time

by Ethan Caldwell September 6, 2024

written by Ethan Caldwell

Hunter Biden, son of the president of the United States Joe Bidenpleaded guilty to nine counts of tax evasion before a California court in an attempt to avoid a new criminal trial. This agreement comes after he was accused of not having paid aroundand $1.4 million in federal taxes between the years 2016 and 2019.

The decision by the president’s son is aimed at avoiding reliving the nightmare of a second trial, after having been convicted in June for a case of illegal possession of weapons.

Despite his guilty plea, Hunter Biden He is still not exempt from facing a prison sentence. According to special prosecutor David Weiss, who also previously charged him with weapons possession, the president’s son “spent millions of dollars on an extravagant lifestyle” instead of meeting his tax obligations.

Hunter Biden could face a maximum sentence of 17 years in prison and a fine of up to 1.3 million dollars for this case of tax evasion.

The final sentence is scheduled for mid-December, after the November presidential election, keeping Hunter Biden free on bail until then. If he is found guilty in another pending trial, he could rack up a total sentence of up to 25 years in prison.

This case has generated great controversy, since it is the second time that Hunter Biden sHe faces a court in less than a year. He was previously convicted of illegal purchase of a weapon in 2018making him the first son of a sitting president to be indicted in federal court.

September 6, 2024 0 comments

Business

AADE: The “trap” it sets for black incomes – 2024-09-05 00:48:10

by Ethan Caldwell September 5, 2024

written by Ethan Caldwell

AADE sets another “trap” to detect hidden income, enabling the digital clientele through which the tax-control mechanism will be able to see the clients of thousands of professionals and cross-reference the data with the receipts issued and transmitted to MyData.

According to the plan, the measure will be applied in the first phase to car repair shops, vulcanizers, parking and vehicle rental companies, events and excursions organizers and then it will be extended to other categories of professions.

The list

High on the list of obligees are:

Professionals related to the provision of services to vehicles such as vehicle repair shops, car electricians, vulcanizers, body shops, vehicle parts and accessories sales businesses, vehicle parking lots, car washes, vehicle rental businesses, new and used vehicle sales businesses.
Professionals active in the events industry from venues (estates and halls) to catering companies and organization companies.

The new weapon combined with the interconnection of cash registers with POS, digital waybills and electronic invoices will significantly contribute to the fight against tax evasion with the tricks of concealing turnover from the astute.

This is because the tax authorities will have a complete and immediate picture of the “customer traffic” of a professional and will be able to cross-check the data with the data for the receipts that the taxpayer displays in the electronic books in AADE’s MyData.

Essentially this is the modern digital version of the additional books which were observed by thousands of professionals until 2012. In particular, the additional books in handwritten form have been mandatory for several decades in many professional sectors, such as doctors, dentists, accommodation or hospitality operators, training schools, clinics, treatment centers, beauty centers, gyms, garages, etc.

In these, all those who entered the business establishment were recorded, and with the registration of a customer, the proof of service should also be issued. With the introduction of the new Code of Tax Procedures, the Code of Books and Data was abolished and, as part of the simplification, the additional books were also abolished. However, the abolition of the customer book appears to have made it easier for non-receipts to hide income.

Source: ot.gr

#AADE #trap #sets #black #incomes

September 5, 2024 0 comments

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