‘Big Brother’ for all taxpayers in Greece, in which all available information on the tax registration number is recorded and monitored and checked with AI. Reports of tax evasion, smuggling, suspicious transactions and corruption.
Big Brother for taxpayers
The new Taxis (tax) system will provide each taxpayer with a digital profile that includes a comprehensive income and asset overview. This initiative, set to begin by the end of 2026, is part of a broader plan to modernise tax administration in Greece.
The future tax authority is being developed by the Independent Authority for Public Revenue (AADE). It will establish direct connections with various entities, such as banks, the Land Registry, law enforcement agencies, the anti-money laundering authority, the General Commercial Registry (ΓΕΜΗ), the Social Security Institute (ΕΦΚΑ), and other relevant organisations. This effort aims to enhance the efficiency of income and asset verification processes.
Within the extensive database of the new Taxis system, records for each taxpayer will be maintained for at least 100 years. This will include detailed histories of incomes, real estate holdings, bank deposits, stocks, vehicles, vessels, and aircraft, as well as any outstanding debts with the tax authority. For individuals, the AADE will have insights into household composition, including cohabitants, even when there are no official family ties recorded. The tax authorities will also track property acquisition details, transfer processes, ownership, and the status of foreign assets.
The total project budget is €86.18 million, financed by the Recovery and Resilience Fund. The contractor will also oversee the digitalisation of existing paper records held by tax offices and audit centres.
Contents of the Digital Profile
The memory of the new Taxis system will include the following key elements:
Demographic Information: This includes identifying details of individuals sourced from the Citizens’ Register, the Ministry of Immigration and Asylum, and law enforcement agencies. Key documents may include police IDs, passports, and residence permits.
Information on Legal Entities: This will encompass data regarding legal persons and entities recorded in relevant registries, such as the General Commercial Registry.
Tax Identification Number: The file will contain details related to the Tax Identification Number (ΑΦΜ), the Personal Number, and the Social Security Registration Number (ΑΜΚΑ).
Cross-Border Tax Details: Information about foreign tax identification numbers is also recorded, which enables compliance with international tax regulations.
The comprehensive data management facilitated by the new Taxis system will contribute to a more robust method of tax compliance. This digitalisation initiative is not merely a transformation of record-keeping but also aligns with global standards for data sharing among various tax authorities. The significant enhancement in capabilities for analysis, risk management, and compliance will mark a significant shift towards modernising tax collection and oversight in Greece.
Moreover, the digital platform ensures that taxpayers have their obligations clearly defined, promoting transparency. Tools for profile creation and compliance will automatically generate documents such as tax returns, allowing for pre-filled forms, minimising the potential for human error.
Future Tax Administration Processes
The integration of electronic systems within the Taxis framework lays the groundwork for improved operational efficiency in tax administration. Here are several anticipated processes and functionalities:
Data Interoperability: The new system will allow for and facilitate data exchange between various public and private entities. This interoperability will streamline tax processes and enhance compliance.
Risk Analytics: Based on the comprehensive information gathered, the AADE will be equipped to conduct thorough risk assessments related to tax compliance among individuals and businesses.
Automated Reporting: The database will facilitate automated generation of reports that reflect taxpayers’ obligations and transactions. This ease of reference will support informed decision-making for both taxpayers and tax authorities.
Enhanced Enforcement Mechanisms: With continuous access to an extensive repository of taxpayer data, the tax authority will have better capabilities to detect and address instances of tax evasion or non-compliance. The monitoring of financial activities will create a stronger deterrent against fraudulent actions.
Increased Ease of Payment: Taxpayers will benefit from a more streamlined payment process, integrated seamlessly into the new system, reducing the likelihood of late payments and penalties.
The Taxis system’s upgrade will also provide legal entities with the necessary tools to manage their tax responsibilities effectively. Businesses will have real-time access to their tax profiles, enabling better financial planning and management of tax-related matters.
Taxpayer Compliance and Obligations
Tax compliance is an essential aspect of the new Taxis system. The increase in digital capabilities aims to foster compliance among taxpayers through the following means:
Clarity in Responsibilities: The system will clearly outline tax obligations, making it easier for taxpayers to understand their responsibilities and deadlines. This transparency is crucial in mitigating the risk of non-compliance.
Monitor and Report: The powers granted to the AADE will allow for constant monitoring of compliance, facilitating swift action in cases of discrepancies or potential fraudulent activities. Regular reporting and timely communication will keep taxpayers informed.
Penalties for Non-Compliance: With a robust system in place, penalties for failures to comply will be enforced more effectively. The integration of advanced identification methods will aid in addressing tax avoidance and evasion.
Implications for Taxpayers and Society
The introduction of the new Taxis system will have profound consequences not only for taxpayers but also for society at large. Increased compliance will contribute to the government’s ability to allocate resources effectively, improve public services, and enhance overall economic stability. Key implications include:
Strengthened Public Services: With a more efficient tax collection system, governments will have access to increased revenue, empowering them to invest in public services such as healthcare, education, and infrastructure.
Fair Taxation: By accurately tracking incomes and assets, the system aims to create a level playing field where all taxpayers contribute fairly according to their means, reducing inequalities and enhancing social justice.
Economic Growth: The newfound efficiency in tax administration could lead to improved economic conditions. By ensuring compliance and optimising resource allocation, the government can stimulate growth and investment.
Reports of tax evasion, smuggling, suspicious transactions and corruption
In the past year, the Independent Authority for Public Revenue (AADE) received a significant volume of reports from individuals, averaging at least 200 complaints per day. These reports concerned various issues, including tax evasion, smuggling, suspicious transactions, and corruption among public officials.
In total, 74,944 reports were recorded in 2024, highlighting a robust public engagement in monitoring tax compliance. Among these, 31,309 were submitted through AADE’s specialised digital platform. The breakdown of these reports included:
- 27,514 complaints regarding tax violations
- 345 complaints related to customs violations and smuggling
- 3,450 complaints concerning corruption among public officials
Additionally, over 43,635 individuals provided information about suspicious receipts through the Appodixi application, aiding the efforts to ensure tax compliance.
The platform allows citizens to report or provide information, either with their names or anonymously, regarding tax evasion, smuggling, tax violations, and integrity breaches by officials. This flexibility encourages greater public participation in exposing illicit activities.
Once submitted, the reports and information are processed in an automated manner, depending on their content. They are then sent to the relevant departments for further investigation or control as needed. This system ensures that reports are promptly assessed, whether they are anonymous or named, utilising an automatic risk analysis criterion to prioritise cases for inspection.
Reports concerning tax issues that do not see any auditing actions taken within six years of submission are moved to a separate electronic file. This is maintained for historic purposes or for potential later use if related to newer reports. If a report remains unutilised in any manner within ten years of its submission, it is permanently deleted from the Integrated Information Management System.
The Appodixi application has been downloaded by over 300,000 citizens, enabling them to scan and submit receipts to the AADE, especially those with indications of altered details or failure to transmit to the tax system. This tool empowers citizens to play an active role in ensuring compliance and integrity in financial dealings.
Frequently Asked Questions
What documents are needed to create a digital tax folder for individual taxpayers?
To set up a digital tax folder, individual taxpayers typically need to provide personal identification details, proof of income, and any existing tax records. These documents ensure that the folder contains accurate and relevant financial information.
How does the digital tax folder system enhance personal tax management?
The digital tax folder system improves personal tax management by centralising all tax-related information in one accessible location. This allows taxpayers to easily organise their financial records, monitor their tax obligations, and prepare for filing their taxes efficiently.
What actions should an individual take to access their digital tax folder?
To access their digital tax folder, individuals should follow these steps:
- Visit the official tax authority website.
- Log in using their personal credentials or register for an account if they do not yet have one.
- Navigate to the digital tax folder section to view or manage their information.
Are there security measures to safeguard personal information in the digital tax folder?
Yes, there are several security measures in place to protect personal information within the digital tax folder. These measures may include encryption of data, secure login processes, and regular updates to security protocols to prevent unauthorised access.
How often should an individual update information in their digital tax folder?
It is advisable for individuals to update their digital tax folder whenever there are significant changes in their financial situation, such as new sources of income, changes in personal circumstances, or updates to tax laws that may affect their obligations.
What are the consequences of failing to comply with digital tax folder regulations for taxpayers?
Non-compliance with digital tax folder regulations can lead to various repercussions for taxpayers. These may include fines, penalties, or increased scrutiny from tax authorities, which can complicate their tax situation and lead to a greater risk of audits.
