Greece to Launch Sweeping Tax Return Audits Post-July 24 Deadline

Greece's tax authority, the Independent Authority for Public Revenue (AADE), is set to launch a rigorous audit of tax returns following the July 24 deadline. This initiative aims to uncover undeclared income and identify instances where expenses have been artificially manipulated to reduce tax liabilities.

So far, over 6.4 million tax returns have been filed, with 35.01% resulting in a tax liability and 29.48% eligible for a tax refund. The first installment of taxes is due by July 31, with options for a lump-sum payment or eight monthly installments. Taxpayers who opt for immediate payment may still benefit from a discount, provided it is announced for late submissions.

The AADE will focus its cross-checks on specific income sources, including bank interest, dividends, property income, and retroactive salary/pension payments. Particular attention will also be paid to remittances, loan servicing data, and owner-occupied housing codes. Taxpayers found to have filed inaccurate returns could face substantial financial penalties, with the amount potentially reaching up to 50% of the additional tax determined after the audit.

Individuals who suspect errors in their submitted returns are urged to review their filings and submit corrective declarations. The deadline to amend returns without penalty is July 24. For late or incomplete submissions that do not result in tax due, penalties ranging from 100 to 500 euros may apply, depending on the taxpayer's status.