Greece Launches AI-Powered Tax Evasion Crackdown

Greece's tax authority is gearing up for a significant crackdown on tax evasion, employing artificial intelligence to pinpoint businesses and professionals deemed to be at high risk of non-compliance. The operation, set to begin with the summer, aims to conduct approximately 4,000 targeted audits across the country.

Tax officials will leverage AI to analyze data from platforms like myDATA, point-of-sale transactions, VAT declarations, and previous tax filings. This data-driven approach will create risk profiles for thousands of Tax Identification Numbers (AFMs), moving beyond traditional reliance on experience and citizen complaints. Last year's checks revealed a high rate of non-compliance, with over one in three audited entities found to have violations, a rate of 34.2%.

The hospitality sector, including restaurants, cafes, and bars, remains a primary focus, with over 22,000 audits in 2022 revealing a 32% violation rate. Retail also saw significant non-compliance, with nearly 30% of businesses audited in the same year found to be breaking tax laws. The tax authority is also intensifying its scrutiny on tourism-related businesses such as hotels, rental accommodations, villas, travel agencies, and beach bars, where evasion rates approached 34% in 2022.

Additionally, the tax authority is paying close attention to wholesale trade, particularly in sectors like food, pharmaceuticals, metals, and technology. These areas are considered crucial in the fight against VAT (Value Added Tax) fraud, which represents significant lost revenue annually. The new AI-powered strategy signals a more sophisticated and data-intensive approach to combating tax evasion in Greece.