"Heavy "bells" reaching up to 50,000 euros face entrepreneurs who after a tax audit found that they have "erased" files and memories from cash registers to hide turnover and avoid paying tax.

In a new circular, the Hellenic Revenue Service gives instructions for the practical application of the provisions of Article 54E of the Tax Code (Law 4987/2022) to natural and legal entities or legal entities in the context of a tax audit. Fines are set for infringements found after an audit for failure to keep accounting records for cash registers, as well as for failure to retain or produce, upon request, electronic tax mechanisms (FEMs) and tax memos and records created by the FEMs.

The "penalties" for violations at the cash registers

In particular, the penalty list depending on the type of infringement is as follows:

1. If it is found that the audited entity has not kept the accounting records (books) provided for by the relevant provisions, a fine equal to 15% of its income from business activity for each year under audit, as derived from the average of the declared income with the income tax returns for the last three tax years. Not included that for which the deadline for submitting the relevant income tax return has not expired.

This fine may not be less than EUR 10,000 per audited year, provided that a person who is required to keep simple books. Or less than EUR 30,000 per audited year, if it is a double-entry book keeper. It may also not be more than three times the minimum fine applicable in each case.

Failure to show for any reason the accounting records (books) to the tax audit is equated with non-compliance. The fine is not imposed if the failure to keep or update them does not affect compliance with tax obligations and the submission of tax returns. Or if by any appropriate means it is possible to determine the taxable amount and the corresponding tax liabilities.

2. The fine of 15% of revenue and a minimum of 10,000-30,000 euros depending on the type of books kept is imposed in cases where, in the context of an on-site prevention audit, the competent auditing bodies find that the audited entity has not safeguarded or did not produce the Electronic Tax Machines (FEM). Also the memories and files created by the FEMs (a.txt, b.txt, s.txt, e.txt, etc.) which are stored in electronic form.

The fine is imposed provided that the taxpayer did not declare the loss of the FEMs before the issuance of the above-mentioned order. In the event of a declaration of loss of the FEMs, the fine shall be EUR 2 500.

3. In case of non-submission of even one of the income tax returns of the last three tax years despite the existence of a relevant obligation, the fine is calculated on the basis of the average of the income of the submitted returns. It may not be less than 30,000 euros per controlled year, if it is a person subject to keeping single-entry books and 50,000 euros per controlled year, if it is a person subject to keeping double-entry books, nor may it be more than three times the minimum fine in each case