Tax Accounts to 12,000 taxpayers who were caught, after targeted electronic cross-checks, having hidden income from the taxman, will be sent by the Independent Public Revenue Authority (ADC) within 2026, in order to prevent the statute of limitations on these cases at the end of the year.

These taxpayers who did not file tax returns as they should – based on earnings statements – and “fell” into the net of the cross-checks, will be required to pay the taxes and fines for the income they withheld from the Tax Authority.

The cases are not only about failure to file returns. There are also cases where pre-filed amounts or actual incomes were unduly altered, or differences were found between the reported income and the living expenses/expenses that were digitally recorded.

These are mainly cases that expire at the end of 2026.

As part of now automated procedures, the Tax Administration is directly issuing an Administrative Determination Act, based on the digital findings already available to it.

In the storage are workers and pensioners with undeclared retroactive payments and earnings, taxpayers with income from abroad, property owners with undeclared rental income, professionals and businesses that did not submit or submitted late aggregated customer-supplier statements, as well as income tax and VAT cases.

Taxes by estimation

According to the DPA’s planning, from the second half of this year, taxes by estimation will also be charged to both individuals and legal entities that have not even submitted tax returns although they were due.

The Authority will send tax clearance notices in which:

  • The taxable income will be determined based on data on the living standards and economic activities of taxpayers, collected by the Authority from its own digital files and applications (income tax returns, VAT returns of previous years, myData platform, etc.) as well as from third parties (employers, banks, utility companies, etc.).
  • Taxes payable will be based on the taxable income determined by the AADC and will be increased by the proportionate amounts of penalties for non-filing, which will amount to between 10% and 50% of the amount of taxes payable.

Taxpayers will be notified by e-mail or any other appropriate means of posting the statements to their accounts .

It is worth noting that according to the Code of Tax Procedures (TPC), “if the taxpayer fails to file a tax return on time, the tax is determined on the basis of all the information available to the Tax Administration (estimated tax determination), and shall relate in particular to the taxpayer’s standard of living, the exercise of his business or professional activity or similar business or professional activities. If, after the issuance of this act, the taxpayer files a tax return, this act shall cease to be valid automatically.”

The taxpayers who will be the recipients of these assessments will have two options:

a) either pay the amounts shown in a lump sum within 30 days of the notification of the statements,

b) or file late income tax returns at any time until the expiration of the statute of limitations,in order that, on the basis of such returns, regular payment statements may be issued, in which the amounts of tax assessed against them will be increased by the prescribed amounts of late payment penalties and interest.

With the full digitalisation of operations and procedures, the Tax Administration is now able to compare data from many different sources: bank accounts, POS transactions, short-term rental platforms, income tax returns, data from myDATA, social security funds, property transfers and other databases. Through these cross-checks, discrepancies between the declared and actual incomes of taxpayers are identified.

At the same time, particular attention is given to cases where large discrepancies appear between bank transactions and declared incomes, as well as to cases of taxpayers who show increased living expenses without being justified by the incomes declared to the tax authorities. Electronic audits are now carried out with great speed, allowing the AADE to identify within hours cases that previously required multi-year audits and lengthy procedures.