Greece's tax authority, AADE, is leveraging digital technologies to combat tax evasion. Since early 2024, they have identified 1,100 individuals with discrepancies between declared income and their spending patterns. These individuals have been warned of potential audits and the need to justify their financial activities.
AADE's use of digital tools enables them to access data from financial institutions, including details about deposits, investments, loans, and various payment methods. Digital wallets and services like PayPal are under particular scrutiny.
Individuals who fail to provide satisfactory explanations will face a 33% tax on the unexplained difference in income, along with fines, surcharges, and a special solidarity contribution, resulting in a total tax burden exceeding 50%. Additionally, any unexplained amounts in bank accounts will be considered an increase in wealth and subject to taxation.
AADE has also received a significant number of complaints from citizens regarding suspected tax evasion and customs violations. These reports have led to targeted tax audits, including a recent operation code-named "Paper Dragon," which uncovered systemic tax evasion in 287 Chinese-owned retail businesses.
Overall, Greece's tax authority is demonstrating a strong commitment to tackling tax evasion through the effective use of digital technologies and citizen engagement.