This year, too, those who appear with incomes below 10,000 euros, but at the same time record expenses that do not match their tax profile, will not escape the electronic eye of the Internal Revenue Service. After last year’s AADE audit, which revealed 800 taxpayers with “black” incomes, who now undergo regular audits, a new wave of cross-checks is coming that puts every suspicious transaction under the microscope.

The process is simple: the AADE compares declared income with the total cost of living, from supermarkets and school fees to travel, insurance and banking. Those who show “holes” in their tax picture will be asked to prove where the money they spend comes from.

How the cross-checking will be done – the key checks by the AADE

What is under the microscope:

– Bank transactions and accounts with transactions over 100,000 euros per year

– Card payments for consumer expenses, travel, supermarkets

– Repayments of loans (mortgages, consumer loans, etc.)

– Purchases of real estate, cars and other assets

– Private school fees and insurance policies

– Hospital fees to private medical institutions

– Public utility and telephone bills exceeding EUR 1000 per year

The AADE does not directly target those who declare low incomes, especially if they are employed and pensioners. However, freelancers who show incomes below the living wage will come under closer scrutiny, and declared income is being introduced to curb tax evasion.

Who are the next targets – influencers on the list

Of great interest are the 20 influencers being audited for undeclared income. Auditors are looking at whether they show on their returns payments they receive from sponsorships, advertising campaigns and product sales via social media.

The audit is conducted through bank transactions, online payments and social posts, with the aim of identifying influencers who declare low incomes but travel constantly, promote expensive brands and maintain a luxury lifestyle with no apparent tax records.

How the Hellenic Tax Authority will identify undeclared income

The checks will be carried out using three main techniques:

– Liquidity analysis: Comparison of income with total expenditure and deposits.

– Net position: monitoring the change in assets against reported income.

– Net position: monitoring the change in assets against reported income.

– Checking bank deposits: if deposits and expenses exceed declared income, the taxpayer is automatically targeted.

– Checking bank deposits: if deposits and expenses exceed declared income, the taxpayer is automatically targeted.

– Taxes and fines for those who do not justify their expenses

The AADE does not expect admissions from auditees. It applies cross-checks and determines the amount of tax that should have been paid.

For those who cannot prove the legitimacy of the amounts spent, there is a provision:

– 33% tax on the difference in income

– A 50% fine on the difference in tax

– Surcharges for late payment

Audits are in full swing and the first results are expected soon. Those who cannot justify their expenses will face additional taxes and heavy fines. The AADE is tightening its grip and the margins for those trying to avoid their tax liability are narrowing dangerously.