It is trying to cut off the “auto-drivers” from company management Ministry of Developmentfacilitating at the same time the work of its auditors Independent Public Revenue Authority. With an order promoted by the Ministry of Development, it will be prohibited, either during the formation of the company or during its operation, to appoint a member of the board of directors in a S.A., a manager in an LLC, an IKE and an E.U. power of attorney or irrevocable representative of legal entities and to represent it before a court when certain reasons arise. Essentially, natural persons whose VAT number is suspended, who have been subject to criminal sanctions, who have been finally convicted of money laundering or terrorist financing, who have been convicted of tax evasion and non-observance of regulated debts, etc.
The tax authorities are often faced with such situations, while often the entrepreneurs who are imposed “severe” fines put a lock on their businesses by themselves to avoid paying them. Of course, as sources from the tax administration state, they do not stop their activity by starting again through straw man partners or with their spouse’s tax identification number. They open new businesses, evade taxes and if they are detected by the authorities, they close the businesses, without paying taxes and fines.
This is one of the reasons why a very small percentage of fines are collected. According to data from AADE, in audits carried out by the Large Business Control Center since the beginning of the year, taxes and fines of approximately 190 million euros have been imposed. Of this amount, only 16 million euros have been collected. Also, the High Wealth Taxpayer Audit Center detected tax evasion of almost 100 million euros in audits it carried out. The collected, however, is limited to 13 million euros.
In fact, when the auditing authorities look for money in the accounts of the offenders, they find that there is no money and no assets in general. According to reports, the tax administration will start talks with companies such as Revolut, in order to request details of Greeks who have accounts. AADE estimates that there are assets somewhere and with the planned changes they will be found.
The “hidden” of tax authorities and auditees does not stop here, however, as there are not a few who appeal to the Court. This move is aimed at delaying the payment of taxes and fines awarded to them by the tax office or customs, with the State waiting 5-10 years until the case is heard.
However, what is established by the audits is that the audacity of certain fraudsters has no limits and despite the new tools used by the tax administration, they continue to hide income from the Greek State or do not issue receipts. From the data presented yesterday by AADE, tax evasion of more than 10 million euros emerges from the audit of nine companies. Particularly:
• A television program production company for the tax years 2019, 2020, 2021 and 2022 concealed a total amount of VAT of €3.9 million, based on 33 invoices it received, and is ordered to pay a fine of €2 million.
Businessmen to avoid fines lock themselves up and continue to operate through straw men.
• A steakhouse from 3-8-2023 to 22-9-2023 did not transmit 17,000 tax details to AADE, with a total value of 184,000 euros, plus VAT 25,000 and was sealed.
• A footwear retail business, in Athens, did not forward 700 receipts, with a total value of 8,000 euros and was sealed.
• In 2020 and 2021, a clothing business in Athens, after a check between the courier company’s reimbursements and the issued receipts, it was found that it did not issue 46,500 receipts, with a total value of 3 million euros, plus VAT 720,000, resulting in a fine of 355,000 euro.
• A sole proprietorship, owned by a well-known singer, was audited for the years 2017, 2018 and 2019 and it was found that it had not issued 16 invoices, with a total value of 51,500 euros, plus VAT of 10,720 euros, and for 2019 it had not paid VAT of 31,000 euros.
• A scrap wholesale business in 2016 carried out virtual transactions of issuing and receiving virtual tax data, with a total value of 1.5 million euros.
• Restaurant, with stores in Athens and Skiathos, in the years 2018, 2019 and 2020 invoiced with large discount rates, concealing revenues of a total value of 90,000 euros, plus VAT of 21,500 euros. The company in question was fined 64,000 euros.
• A well-known night entertainment center in Athens in the current tax year had not forwarded 2,600 receipts, with a total value of 165,000 euros, plus VAT of 39,400 euros and had concealed VAT of 34,200 euros. A fine of 37,000 euros was imposed on the company in question.
• Center for aesthetics and marketing of beauty products, in which a cross-check was carried out between the data from a well-known courier company and the issued tax data, it was found that it had not issued 6,270 tax data, with a total value of 439,000 euros, plus VAT of 106,000 euros, with the consequence that it was charged a fine of 52,600 euros.