AADE intensifies Greek tax audits on bank transfers and long-term non-filers

The Independent Authority for Public Revenue (AADE) in Greece is intensifying its audit operations, focusing on bank account movements and historical tax compliance.

Tax authorities are specifically targeting money transfers that may mask undeclared donations. This includes scrutiny of joint bank accounts, where a co-holder transferring funds without proving their original contribution to the balance may face taxes of up to 40%. While parental gifts to first-degree relatives have an exemption limit of 800,000 euros, this requires transfers via the banking system and proper declarations; cash transfers bypass this exemption and trigger a 10% tax from the first euro.

Additionally, AADE is executing a plan to identify taxpayers who have not filed returns since 2010. By cross-referencing electronic databases, international information exchanges, property registries, and bank transaction records, authorities can seek tax liabilities dating back 15 years.

Regarding enforcement, taxpayers facing bank account seizures may be able to lift them by paying 25% of the debt, provided all other outstanding tax liabilities are settled or legally regulated. For bank deposits under audit, failure to prove the legal and taxed origin of funds can result in a 33% tax rate plus a 50% penalty.