Tax audits via …remote control!

The new tax bill is enforcing Big Brother tactics in the tax assessment mechanism of the State, which establishes "remote" procedures for the monitoring of taxpayers and the electronic imposition and payment of fines.

With the tax bill, the need for "local" auditing is bypassed and it is established that the auditing of the taxpayer can be done without the auditors having to go to the companies. The taxpayer will receive only the "love letter" with the fine.

Also, it introduces an electronic fee for state payments, as the Ministry of Finance estimates that the printing of state fee invoices costs many millions.

To complete the high-tech danegeld, the same bill provides that cash registers in all stores (even in the smallest grocery shop in the remotest village) must have an online connection with the General Secretariat of Information Systems. Businessmen will be forced to sent electronic data onsales and in case they don’t, they will be fined to the tune of 200 – 5.000 euro.

If one reckons that now a tax trial can take place with the accused in absentia, as long as he/she is informed 3 days before, that IRS will estimate the VAT on its own if one omits it, that according to the new records the lowest income and the minimum tax due are calculated automatically, it seems that the Finance ministry has found the solution to the bureaucracy problem and the close encounters with tax auditors.

The IRS audit is a psychological trauma

It is indicative that in the explanatory report the Finance ministry cites psychological reasons against having on-site audits

Through this new way of auditing, an attempt is made on one hand to gain productive time for the auditorial services… and on the other not to pressure or bother the people due to a tax audit in their business location».

It is a new system of «audits from the office». An article is added in the VAT code that provides for «a flexible form of audit from the file of the taxpayer and based on information from other services or cross checks with GSIS without needing an on-site audit unless necessary, and a partial VAT estimation is issued without requiring a check on other taxes».

The Finance minister will set the criteria as to when there will be an office or an on-site audit, and also the audit techniques whereby income will be calculated so that the audit framework becomes clear.

The IRS auditor will assess from the office:

- if the payer’s data includes SDOE violations etc.

- if he/she has omitted to state the exact taxable amount

- if he/she has calculated correctly the rates, sales etc.

e-deposit against marginalization

At the same time, it establishes payments to the state via e-deposit from KEP, banks etc with cash or credit card via web or phone banking, at ATMs etc.

The Finance ministry cites two main reasons for this measure:
- elimination of marginalization for digitally or socially blocked groups

- decrease of the administrative cost for the State services offered to the citizens.

Today’s estimated annual state cost for production and sale of 20mil state fee is around 30mil euros. Moreover the Finance ministry includes in its calculations the cost for auditors that “pocket” the deposit money and also the fake state fee invoices in the market.

e-accounting offices

The traders who issue receipts of retail sales or service tax using cash machines will be required by the bill to transmit data electronically to a database of the GSIS of the Finance Ministry.

The Finance minister’s decision designates: a) the scope and the specific commitments of traders, b) the procedure and technical requirements for transmission of data, c) general organizational and technical measures for the security of data processing, d) the procedure and the bodies responsible for imposing, assessing and collecting the fine, and any other relevant matter.

As for those who neglect their obligations under the provisions of this paragraph and the regulatory decision issued in the previous paragraph, it is mandated by the Finance minister that they receive an administrative fine ranging from 200 to 5.000 euros, depending on the frequency and severity of the offense.