By Chrysostomos Tsoufis

An antidote to the phenomenon of businesses – mainly seasonal ones – which, at the start of their operating season, are type and sub-line and pay, for example, the first installment of VAT but then become “smoke”, is looking to find the Ministry of Finance. And in order to close this window of tax evasion, he gives AADE, through the tax bill for the reform of the tax procedure code that is now up for public consultation, and the weapon of the so-called intermediate tax assessment.

The phenomenon of tax evasion through “disappearance” was observed to have intensified in recent years and with the AADE itself proposing the new way of control. The interim tax determination will be activated in cases where the combination of the existing criteria results in an immediate or imminent risk of tax evasion – mainly concerns seasonal or newly established businesses – or even a risk of the taxpayer leaving the country.

Now the AADE he will be able to “capture” taxable material before it closes while the period of operation of the business is in progress.

For example let’s say that a business is established in May on an island. It is simple, which means that it must submit its first VAT return in June for the second quarter of the year. He submits the declaration, but does not pay a single euro, nor does he make an arrangement, which is usual according to the head of the AADE George Pitsilis.

Based on the new regime, when will be checked – e.g. at the end of August – , the auditors will not only deal with the period up to June which is the end of the period for the VAT of the second quarter, but they will also check the period of July and August. And based on what they see in their data, they will calculate the tax which is immediately due. With the current system, September would have to pass to check July and August.

In any case, the tax administration clarifies that this is not a general attitude of the AADE, but a tool to deal with special circumstances concerning businesses with a specific tax profile and specific behavior.

In this part, until now, AADE was almost unarmed. In the current legislative framework, there is only a possibility for a preventive assessment of tax and only in cases of evidence of flight from the country.

After confirming the tax from the preventive audit, the taxpayer either pays the debt in one lump sum or ensures its payment, providing a guarantee or accepting the registration of a charge on his property in favor of the Tax Administration for the total amount of the tax debt. The guarantee and encumbrance registration are maintained until the tax debt is paid in full.

Within 1 year from the date of issuance of the act of preventive tax assessment, a corrective assessment of the tax follows.