A new digital system for automated control and detection of unjustified taxpayer property increases has been used by the Independent Authority for Public Revenues since the beginning of the year and has so far yielded significant results. 

It has sounded the bell for 1,100 individuals, as the income they declare to the tax authorities does not justify the number of deposits or investment accounts they have in banks. According to Athens News Agency, the next step for the audit authorities is to invite these taxpayers to justify the large difference between their declared incomes and their deposits, and if they fail to do so, taxes, fines and surcharges may be imposed on them.

This is the Automated Assets Accumulation Control mechanism that enables the audit authorities to obtain data and information from credit institutions on the amount of deposits, investment accounts, credit and prepaid cards, bank accounts and e-wallets for the audited individuals in a rapid procedure. These data are then compared with tax returns in order to determine whether the amount of their assets and living expenses is justified by the income they declare to the tax authorities.

If they are not justified, then a 33% tax on the difference is imposed, plus additional fines, surcharges and a special solidarity contribution, resulting in a final burden of more than 50%.

The aim of the control authorities is to intensify controls in the coming period through the new mechanism, which is proving to be particularly effective in the fight against tax evasion.

Apart from the development of deposits of individuals, the focus of controls will be on e-wallets and Paypal-type services, which are recording a strong upward trend in digital payment methods.

The data sent to the new system by banking and financial institutions is as follows:

- Deposits

Loans granted

investment accounts from all types of investment product and securities portfolios (mutual funds, bonds, shares, derivatives, repos).

Credit cards

 Bank accounts

payment accounts

 Prepaid Cards

 Electronic wallets

Note that the AADE must automatically classify an amount in a bank account as a "property addition" if it determines that it has an unknown source and that the taxpayer cannot justify it with any source of income. The taxpayer, if called upon by the IRS, bears the burden of proving the source or cause of origin. If the evidence is not satisfactory, any property increment is classified and taxed as income from liberal professions at a rate of 33% plus penalties and surcharges and the imposition of a special solidarity levy.

In any case, it should be noted that an increase in wealth resulting from the control of bank accounts must be adequately documented, since withdrawals or deposits may relate to transactions and movements that do not necessarily constitute taxable income.