Tax office: 10 "secrets"which can reduce fines by up to 50%

Taxpayers have the opportunity reduce finesimposed by control authorities as part of a tax audit, up to 50%if they accept the test results and the underlying commitment.

Filing a declaration of “recognition” of tax evasion now carried out digitally through a special platform AADE (Ανεξάρτητη Αρχή Δημοσίων Εσόδων – Independent body of state revenues), and during 3 days from the moment of filing the declaration, 25% of the main obligation must be paid. Depending on the time when taxpayers accept the results of a tax audit, the fine is reduced by:

• 50% for recognition returns filed within 15 days of filing a late original or amended tax return and before 10 days of notice of a temporary tax adjustment,
• 40% for declarations of recognition after notification of the final act of adjustment of tax, duty or contribution and during the period for filing an appeal to the Office of Dispute Resolution (ΔΕΔ), regardless of whether an appeal has been filed or not,
• 30% for declarations of recognition after notification of the ΔΕΔ decision or tacit refusal of the deadline for filing an appeal to the administrative court of first instance (provided that no appeal has been filed),
• 25% for declarations of recognition after filing a timely judicial appeal and before the previous day of the date initially set for the consideration of the case in the relevant administrative court.

Payment of 25% tax

The taxpayer must then pay, within three business days, an amount corresponding to 25% of the underlying tax, fee or contribution, plus possible late interest. After payment of the specified amount, the remaining debt can be repaid either in one lump sum or 12 equal payments.

AADE Instructions

AADE provides instructions on digital filing to “recognize” tax evasion and “reduce” penalties by up to 50%.

1. I filed my tax return after receiving the audit order. What are the conditions for accepting the basic tax and penalty?

   The conditions for filing a declaration of recognition are as follows:

   • Original or amended tax returns must be filed after notification of the inspection order based on paragraphs 1.β or 1.δ of Article 22 and 3.α or 3.γ of Article 23 of Law 5104/2024. In any case, these returns must be filed before the expiration of ten (10) days from the date of notice of the temporary tax adjustment.
   • Returns must be debited and taxes must be assessed.
   • Penalties arising from the filing of the above declarations must be assessed.
   • The date of filing the declaration of recognition on the platform must be within 15 days from the date of filing the tax return (or its final processing in the case of personal income tax).
2. When will the fine be reduced?

   The reduction of the fine will be made after full and timely payment of all contributions subject to regulation. Throughout the regulation period, the amount of the fine subject to reduction will be suspended for collection.
3. Do I have to make any statement or action to reduce the fine?

   In most cases, no action is required. The fine reduction is carried out automatically by the services. An application for cancellation and refund is required in cases where the liability for the basic tax and reduced penalty to be recognized has been satisfied before the filing of the declaration of recognition. In this case, when submitting the declaration of recognition in digital format, the regulated amount is zero and the message appears:

   “The liabilities for the basic tax/levy/contribution and the reduced fine, subject to recognition based on the provisions of article 75 of Law 5104/2024, have been extinguished. Please complete the submission of the declaration of recognition and then send proof of submission to the appropriate debt collection authority (ΔΟΥ/ΚΕΒΕΙΣ/ΚΕΜΕΕΠ/ΚΕΦΟΜΕΠ) so that the excess amount is canceled or returned in accordance with the provisions in force.”

4. I have already submitted the declaration of recognition digitally, but have not paid the advance. Can I apply again?

   Yes, you can submit multiple declarations of recognition during the filing period.

5. I submitted a declaration of recognition and paid the advance. Can I change the number of payments?

   No, you can't. You can only pay off the entire debt in advance and then request from the appropriate service a refund of the interest related to future payments.

6. I have already paid the tax and the percentage of the penalty, which corresponds to article 75 of law 5104/2024. What should I do to cancel the remaining fine?

   Once you have completed submitting your declaration of recognition digitally, you need to send confirmation of submission of the declaration to the relevant service responsible for debt collection (ΔΟΥ/ΚΕΒΕΙΣ/ΚΕΜΕΕΠ/ΚΕΦΟΜΕΠ) so that they can cancel the remaining fine (see question 3).

7. I have already paid the entire amount of tax and fine. What should I do to return the amount corresponding to the percentage reduction of the fine based on article 75 of Law 5104/2024?

   After completing the submission of the declaration of recognition in digital format, you need to send confirmation of submission of the declaration to the relevant service responsible for debt collection (ΔΟΥ/ΚΕΒΕΙΣ/ΚΕΜΕΕΠ/ΚΕΦΟΜΕΠ) so that they can return the fine amount according to the percentage established depending on the stage ( see question 3).

8. I have paid the advance amount, but the remaining payments are not showing up on my account. What could be happening?

   Keep in mind that it takes approximately 2-3 business days for the system to update with payments made to credit institutions using Regulated Debt Identifiers (ΤΡΟ). If the above time has passed, the problem may be due to:

   • Using an incorrect debt identifier (ΤΡΟ). In this case, you should submit a corresponding request to the service responsible for debt collection KΕΒΕΙΣ/ΚΕΜΕΕΠ/ΚΕΦΟΜΕП for Attica and Thessaloniki, and to the revenue departments of ΔΟΥ for the region, selecting the thematic group “Regulation” and the process “Request for regularization/return to regulation” .
   • Payments are more than three (3) business days past due as indicated on the payment confirmation. In this case, you must resubmit the digital declaration of recognition with new conditions defining the stage of recognition.
   • Paying a smaller amount. If you are within three (3) business days of filing your declaration of recognition, you may pay the remaining amount additionally. If the deadline has passed, you must file a new declaration of recognition as in the case of late payment.
9. How can I determine the stage of recognition of the final act?

   The declaration of recognition of the final act is in the second stage when the period between the date of notification of the act and the date of filing of the declaration (current date) is less than 30 days or 60 days for residents abroad (except August), regardless of whether an appeal has been filed or not . If an appeal has been filed, an additional condition is that the decision from ΔΕΔ has not been notified.

   The declaration of acceptance of the final act is at the third stage when the period between the date of notification of the decision of ΔΕΔ or the tacit refusal of a timely appeal and the date of filing of the declaration (current date) is less than 30 days or 90 days for residents abroad (except August) and has not been filed judicial appeal. At this stage, the submission of a Responsible Statement not to file a judicial appeal is required.

   The declaration of recognition of the final act is in the fourth stage after the filing of a timely judicial appeal and before the previous day of the originally set date for the consideration of the case in the relevant administrative court. At this stage, confirmation is required from the court registry that the appeal has been withdrawn and the case has not been considered.

10. It has been 30 or 60 days (for overseas residents) since the final tax adjustment was notified and I have not filed an appeal. Can I submit a declaration of recognition of Article 75 of Law 5104/2024?

    No. A prerequisite for filing a declaration of recognition based on the provisions of article 75 of Law 5104/2024 at this stage is the timely filing of the appeal.

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