The operational plan of the Independent Authority for Public Revenue calls for, among other things, a total of 174,300 audits to be conducted in 2022.
Primary objective, curbing tax evasion and smuggling, as well as the collection of confirmed debts.
There are plans to make 55,000 phone calls to those who do not comply with their obligations, send 15,000 emails with estimated tax amounts, deactivate the tax identification numbers of missing merchants, and carry out electronic audits to verify cash register receipts and by scanning QR codes, while inspectors will begin on-site inspections using laptops and will automatically provide those being inspected with the results of the inspection.
The AADE’s 2022 operational plan projects revenue assessments totaling 1.8 billion , though actual collections are expected to be limited to 800 million euros, while from the overdue debts which have risen to 113 billion euros, €4.4 billion is expected to be collected, of which €2.2 billion will come from old overdue debts and €500 million from large debtors.
Tax Audits
At least 25,000 tax audits will be conducted, of which:
- 8,100 targeted tax audits (of large businesses, high-net-worth taxpayers, etc.) conducted by the audit services of the Independent Authority for Public Revenue (AADE), with an emphasis on audits of business owners with significant tax gaps who have not been audited in the last five years, as well as the use of indirect audit techniques
700 targeted VAT audits
Audits of a sample of tax refund cases
5,500 unannounced audits of business owners (receipt of government subsidies, use of information, etc.)
4,000 audits of other cases involving compliance with tax obligations
200 audits of a random sample of self-employed individuals and legal entities, due diligence audits, as well as audits in cases of a change in tax residence
5,500 targeted tax refund audits
Conducting at least 2,500 audits to verify proper compliance with non-annual capital tax obligations, namely real estate taxes
Conduct of at least 900 investigations by the YEDDE, of which:
170 investigations involving VAT fraud in intra-Community transactions
100 investigative cases involving the use of new information and data
50 special investigation cases in the field of e-commerce|
580 tax evasion investigations related to the opening of bank accounts, the processing of seized data and records, networks involved in issuing and receiving fictitious tax documents, processing digital files, etc.
Conducting at least 34,000 partial on-site preventive audits by the Tax Offices and 14,500 by the Regional Tax Administration Offices
Customs Inspections
Conducted 75,000 enforcement inspections (50,000 by Customs and 25,000 by Mobile Inspection Teams), of which:
- 35,500 enforcement inspections of products subject to excise tax
12,000 customs inspections targeting tobacco products
13,000 enforcement inspections of liquid fuels and other energy products, utilizing the findings of the input/output system
10,500 customs inspections targeting alcoholic beverages
4,000 inspections targeting counterfeit products
8,000 inspections of cash transactions
25,500 enforcement inspections in other sectors where smuggling occurs, such as in the trade and circulation of vehicles, passenger transit, and the trafficking of coffee, drugs, cultural heritage goods, etc.
Intersections:
AADE auditors will conduct a series of cross-checks:
- To identify taxpayers who filed zero VAT returns despite having conducted business activities
Regarding Taxpayers' Compliance with Pre-filled Income and Pension Codes
Regarding taxpayers' compliance with the filing of FEFP returns for additional income
At least 10% of all information received from foreign authorities through international administrative cooperation, compared with the submitted income tax returns (DAC1) at least for the year 2017, as well as information received from foreign authorities through International Administrative Cooperation (FATCA) for data from the year 2016
At least 10% of all incoming interest information on individuals received from foreign authorities through international administrative cooperation, with the submitted income tax returns (DAC2/CRS) for at least the year 2016
VAT data by sector on a periodic basis.
Finally, the AADE’s enforcement mechanisms will pursue debtors and, at the same time, attempt to curb smuggling. Specifically:
Debtors: The Independent Authority for Public Revenue (AADE) is preparing to closely monitor taxpayers who owe money to the tax office. The focus is on debtors who have overdue debts for the first time («new» overdue debts) and small-scale debtors from previous years, for whom overdue debts will be reminded, while enforcement measures are being prioritized, through the implementation of an electronic system for selecting cases of overdue debts, using risk analysis criteria. For debtors classified as 72%, enforcement measures may be taken, such as the seizure of bank accounts and the freezing of assets.
Smuggling: The Independent Authority for Public Revenue (AADE) is planning a new framework to combat smuggling and illicit trade by modernizing monitoring systems, inspection procedures, and customs equipment, while simultaneously upgrading its information systems. Within the year, the Independent Authority for Public Revenue (AADE) will proceed with the electronic inventory of gas stations’ LPG tanks, the electronic inventory of tanks on vessels, the installation of an inventory tracking system in Tax Warehouses and Customs Bonded Warehouses, and the installation of an inventory tracking system on maritime supply vessels – and maritime fuel transport vessels.
