Tax declarations: The presumptions of determining the minimum income are contested in two ways

It is only a matter of days before the start of tax returns for income earned in 2023 and according to all indications this will happen before Easter.

The electronic platform of AADE is almost ready to accept the tax returns from almost 6.5 million taxpayers, which this year will have a particularity compared to previous years.

For approximately 750,000 freelancers, self-employed and sole proprietors, the minimum presumptive income from business activity will be pre-populated and based on this the relevant settlement will be made.

As is known, the Ministry of National Economy and Finance has proceeded to change the taxation criteria by establishing as minimum income the amount corresponding to the minimum wage.

Let’s remember that the announcement of the government’s intention, a few months ago, had raised a storm of reactions from some professional groups, which considered the new way of taxation to be devastating for some of them.

AADE and the ministry replied that none of this is “written in stone” and if some people feel that they are wronged, then they can follow a specific procedure to challenge the presumptive determination of their income.

Tax declarations: The presumptions of determining the minimum income are contested in two ways

There are two ways of questioning. The first has to do with the request for an audit and the other with providing the necessary supporting documents due to the objective inability to practice (partially or in whole) a profession.

It should be noted that the two requests that make the presumptive determination of income untenable will be submitted, together with the necessary supporting documents, only digitally.

According to the decision of the Governor of AADE, Giorgos Pitsilis, it is foreseen, among others:

• the deadline for submitting the request to challenge the presumption for objective reasons,
• the accompanying supporting documents as the case may be,
• the procedure, conditions and deadline for submitting an application for an audit
• the time of inspection

Specifically, taxpayers disputing the annual imputed income from business activity must, through the new application on the myAADE digital portal, submit a dispute request.

Depending on the reason for the dispute, the following are specifically provided for:

A. Request for an audit

In this case, the process takes place in two steps:

1st Step: The taxpayer must state in his timely declaration that he wishes to dispute the minimum income, requesting a tax audit (codes 443-444 of E1 of the income tax return).

2nd Step: If he has already filled in the relevant code in E1 of the income tax return, the taxpayer must, at the latest within 60 days from the deadline for submitting the return, fill in a questionnaire with his financial situation and living conditions of himself, his/her spouse/MSS and the protected members, which will be evaluated during the tax audit.

The questionnaire will be completed in a special digital application of AADE, which will be available in the first fortnight of May. The audit is carried out within 12 months of notification of the audit order.

B. Request to dispute on objective grounds

In these cases, the request is submitted directly to the new digital application, which will be available in the first fortnight of May. In particular, the request can be submitted after the submission of the income tax return and the issuance of the settlement statement (tax assessment act) and until the notification by the Tax Administration of an income tax control order or until the statute of limitations of the Tax Administration’s right to issue a tax assessment act . In particular, the objective reasons and the case-by-case supporting documents that prove the impossibility of carrying out business activity are the following: Objective Reason

Attached supporting documents

1. Military service: Certificate of military status or certificate of the Unit serving is submitted
2. Imprisonment: Release from Detention Center or Detention Certificate
3. Hospitalization: Certificate of hospitalization
4. Pregnancy: IDIKA pregnancy certificate / public hospital or private clinic
5. Child rearing twelve (12) months after:

• childbirth
• or adoption
• or fostering a child

Are required:

1. Birth certificate or birth certificate
2. Court decision and certificate of finality or evidence / report of service of the decision to the competent Prosecutor and certificate of non-exercise of legal remedies
3. Deed of placement in a foster family and Certificate of registration of the minor in the National Register of Minors or in the National Register of Approved Adoptions or in the Register of Unaccompanied Minors

• Natural Disaster

Are required:

1. Decision/Certification of the competent body for the classification of the business as affected
2. or decision/deed of the competent body by which state aid is provided to deal with damages caused by a natural disaster as first aid or grant, or advance grant (law. 4797/2021 (Α΄ 66))
3. The total or partial inability to exercise the activity lasts for as long as the period (days) of the declaration is valid with the decision issued in accordance with the provisions of articles 25 and 30 of Law 4662/2020 (Α΄27), of the area which, according to case, the company is based or has an establishment, in a state of civil protection emergency.

• Revocation of the license to operate the individual business or the license to practice a profession

Are required:

1. Decision of the public authority by which the license was revoked

• Prohibition of the operation of the shop or other place of professional or business activity

Are required:

1. Decision of the public authority imposing the ban

• Other reasons of force majeure (e.g. serious health problem, accident of taxpayer or his child for which hospitalization is not required)

Are required:

1. Medical opinion from a hospital or clinic