AADE clarifies tax rules for money transfers between relatives

The Independent Authority for Public Revenue (AADE) has issued clarifications regarding the tax treatment of money transfers between relatives and close associates, following social media discussions.

The authority stated that transfers to bank accounts, whether conducted via IRIS-type systems or other methods, are not of particular tax interest if they involve small amounts, unless a specific pattern of abusive practice is identified. This applies particularly to small sums provided by parents or grandparents to children and grandchildren for daily expenses, such as pocket money.

AADE also addressed a specific case involving a student in Euboea who received a donation from her grandfather. The authority clarified that the tax audit was part of a broader investigation and was not triggered by the grandfather's pocket money to the student. The donation tax levied applied to an amount transferred before the implementation of the exemption for cash donations up to €800,000. Under current legislation, such voluntary declarations cannot be revoked retroactively through an administrative appeal to the AADE Dispute Resolution Directorate.