AADE: Series of cross-checks on deposits and transfers to and from abroad, income from third countries

AADE (Independent Authority for Public Revenue) has launched a series of cross-checks to detect the movement of funds that are not justified by the declared income on tax returns. These checks focus on deposits and transfers to and from abroad, as well as income earned from third countries by Greek tax residents.

According to the plan, the Department of Operational Audit Planning will process data from “foreign payment service institutions for transactions by Greek residents.” The goal is to identify the movement of funds that cannot be justified by the declared income of the individuals involved.

The checks will focus on deposits and transfers to and from abroad, and income from third countries earned by Greek tax residents. Cross-checks will compare AADE data with information received by Greek authorities through international information exchange agreements, targeting undeclared income from both current and past tax returns (up to five years) and financial transactions that are not justified by reported income.

These checks apply only to those whose tax residency is in Greece. Foreign residents are not subject to similar checks, nor are they required to declare their global income in Greece.

According to last year’s data, 82,726 Greek taxpayers had deposits in foreign banks, while 13,404 taxpayers and 4,879 spouses declared income from foreign interest deposits, totaling €79.17 million, with an average interest income of €4,330.27 per taxpayer.

What information is exchanged between authorities:

The tax authorities of cooperating countries exchange the following information:

• Personal details: Name, address, tax ID number (AFM), date and place of birth (for individuals), and business information for entities.
• Account details: Account number or equivalent, institution name, and identification number of the reporting financial institution.
• Account balances: Account balance or value, including the cash value of insurance policies or annuity contracts at year-end, or the value at closure if the account was closed during the year.
• Interest earned: Total gross amount of interest paid or credited to the account during the year.
• Custodial account income: Total gross amount of interest, dividends, and other income generated by assets held in the account, and the gross proceeds from the sale or redemption of financial assets paid or credited to the account during the year.
• Other product returns: For other accounts not covered above, the total gross amount paid or credited to the account holder during the year, including any repayment amounts.

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