Businesses: How to arrange a “haircut” of up to 50% in tax fines

Fine cuts of up to 50% can be achieved by businesses and professionals who recognize the tax offenses they have committed and proceed with amending tax returns, closing the open accounts with the Tax Office.

From October 1 the fines for taxpayers who accept that they have committed tax evasion will be reduced from 25% to 50%, on the condition that they do not appeal to the Administrative Courts to cancel the tax that has been imposed on them after an audit.

By accepting the violation and submitting an amended tax return, the fine is automatically reduced, without human intervention.

The new measure has a double objective. One is the immediate collection of the taxes and fines that the auditing authorities attribute to the companies and the other is the decongesting the courts from possible appeals against the State.

Essentially, the new automated system comes to replace the Committee for the Extrajudicial Resolution of Tax Disputes which has been operating for the last three years and adjudicates cases that are in the courts.

Especially with the new setup:

• The fine is reduced by up to 50% if the main tax debt is accepted and a relevant declaration is submitted up to 10 days after the auditors have notified the relevant tax. Today a 40% penalty reduction applies for income tax and VAT, if the declaration is submitted before the notification of a corrective assessment and the total debt (principal tax, proportional penalty and interest) is paid within 30 days from the submission of the original overdue or amendment.
• The fine is reduced by up to 40% if the main tax debt is accepted after the tax has been notified, but before recourse to the Dispute Resolution Directorate (DDR).
  The fine is reduced by up to 30% if the main debt is accepted tax before submitting an appeal to a competent administrative court.
• The fine is reduced by up to 25% if the main tax debt is accepted before the start of the discussion before a competent court.
• After the reduction of the fine, 25% of the total debt must be paid within 3 days from the acceptance of the relevant application that will be made electronically through an online platform, the activation of which is expected in October. The balance of the debt must be paid in up to 12 monthly installments, through the permanent regulation of the Ministry of Finance. Those who are interested and wish to reduce the fine submitted to them should, from October, declare their intention to AADE.

The limit of controls in enterprises

It is worth noting that the time limit for checks has been extended by 6 months, with the result that if the case has not been completed within this period, it is filed. Specifically, the duration of the tax audit is set at up to one year and can be extended once by six months.

Condition for granting the extension is the start of the audit procedure within the initial duration of the tax audit. A further extension of up to six more months is possible in exceptional cases, which are specifically justified.

Only if the up to then audit results in the possibility of criminally hellish tax evasion, it is permitted, by decision of the governor, upon the recommendation of the head of the competent auditing agency, to extend the duration of the audit up to eight more months from the end of the deadline.

If the tax audit is not completed within the deadlines, a new audit covering the subject matter of the original order is not permitted.

Source: ertnews.gr