The Independent Authority for Public Revenue (AADE) is launching an extensive operation to identify corrupt employees in tax and customs services, focusing on dozens of complaints that have reached the service. According to sources, out of approximately 8,000 citizen reports, 1,469 named cases will be opened immediately, moving directly to the investigation stage. Tax and customs service officials who have been mentioned in related complaints will be called to provide explanations, while their assets will be examined in detail, as well as those of their family members.
AADE is activating its new risk analysis system, conducting random checks even on employees who were previously considered above suspicion. The goal is to determine whether the acquisition of new assets is consistent with the income they declare to the tax office, as well as their actual living expenses. The process, which essentially amounts to an expanded “wealth declaration,” will cover everyone who serves or has served in the past in tax and customs services, without exceptions.
Specifically, the following are being examined:
* Active employees, to determine if their financial status is compatible with officially declared income and actual living expenses.
* Retired employees, for complaints or indications regarding their period of service, even if they have left active duty.
* Family members, such as spouses and children, when there is indication that their financial status is connected to the employee.
* Old cases when new evidence emerges or when banks and other sources provide information about suspicious financial movements.
Financial inspectors
The checks will be conducted by Financial Inspectors from AADE’s Internal Affairs service, and the order they have received is to cross-reference and compare income from all possible sources with all types of expenses or purchases of assets, based on data that the Administration has or emerges from the investigation.
Specifically:
– Income determination: Income determination is carried out by recording all types of legitimate received monetary amounts (salaries, untaxed and taxed income, compensation, stock sales, sales of movable and immovable assets, gambling winnings, monetary donations, inheritance tax declarations, loan receipts, etc.), based on submitted tax return data, information available to the Tax Administration, and evidence provided by the liable person proving accuracy, correctness, and legality of acquisition. Legitimate deposits in bank accounts and other non-taxable income from previous years, not included in submitted income tax returns, are recognized in the income section.
– Expense recording: All actual expenses are checked, not presumed ones, whether personal or family. These include telephone expenses, private school tuition, common charges, car and property insurance premiums, life, health, and retirement insurance programs, loan repayments, etc. Financial Inspectors can request additional data from relevant authorities where deemed necessary.
– Business loss verification: In cases where the spouse maintains a business with continuous losses, the inspector checks the justification of the loss and any financing from existing capital, through payments to suppliers or loan repayments, to determine the legitimacy of money circulation.
– Assets: All movable and immovable property of those being investigated, their spouses, and minor children in Greece and abroad will be examined. Any property increase from donations, loans, parental provisions, or inheritance must be documented with papers (e.g., tax declarations, contracts, capital movements). The financial capability of the donor or lender is also examined. Real estate purchases are checked based on contracts, while for safety deposit boxes, consent from the investigated person is required or, in case of refusal, prosecutor’s authorization.
How the investigation will begin
The investigation will essentially begin with a letter to those being investigated, calling them to complete a detailed family “wealth declaration.” Subsequently, the Internal Affairs “task force” will utilize all new available electronic “tools” to run the audit process. Financial Inspectors, with the digital tools at their disposal, will be able to search and examine:
* Bank account movements (deposit, term, debit credit cards, loans, etc.) through the Bank Account Registry System.
* Stock market data regarding purchases and sales of investment products, precious metals, or other securities
* Data and information from Automatic Exchange of Information with other countries
* Data from members of the Hellenic Association of Insurance Companies regarding movement of all types of insurance products of investigated persons.
Checks will also be conducted on maintaining accounts with large amounts in all types of digital wallets. The origin and legitimacy of these amounts will be sought, while during bank account checks, every anonymous extraordinary bank deposit (credit movement) clearly disproportionate to the investigated person’s financial status is examined.
