The government’s economic team is stepping up its actions to limit it tax evasionwherever it comes from, to put an end to the cunning ones who harm the State and also to the consistent ones contributors. After all, the shadow economy is an open wound for state budget revenues and, by extension, for the public interest, which is why its controls are being intensified. Independent Public Revenue Authority (AADE) in order to limit cases of “black money” laundering, but at the same time, of major tax evasion. In fact, the results of these controls are already visible and in fact several cases of tax evaders and major debtors have been referred for control to the Anti-Money Laundering Authority, with accusations raining down on those allegedly involved in these cases.
In particular, according to AADE data, between January and May 2024, the tax control mechanism sent 375 cases to the aforementioned Authority, of which 164 concern confirmed tax evasion, which will also be checked for “black” money laundering, while the remaining 211 concern debts to the State that require strict control. It should be noted that of the total of 164 cases in which taxpayers and companies are accused of proven tax evasion, exceeding 50 thousand euros, 44 resulted from audits carried out in January, 43 in February, 29 in March, 19 in April and on 29 May.
The total value
It should also be noted that the total value of tax evasion attributed to specific cases identified by the tax authorities amounted to 540.40 million euros. At the same time, in the same period, January-May, 211 cases of taxpayers with confirmed debts to the State exceeding 50 thousand euros were forwarded to the Anti-Money Laundering Authority, whose total debt amounts to 220.29 million euros.
Furthermore, between January and May, as part of the exchange of suspicious cases, the Anti-Money Laundering Authority sent the AADE’s suspicious case audit services to check specific individuals, since in any case the individuals accused of money laundering are also found to be tax evaders or owe debts to the State. Thus, the Anti-Money Laundering Authority forwards all cases investigated for “black money” to the tax office. In particular, in the first four months the Authority forwarded 73 “serious” cases of “black money” to the AADE for investigation into tax evasion and the tax authorities issued the corresponding control orders on individuals, with the confirmed amounts approaching 7.24 million euros.
Legislative changes
It should be noted that, within the scope of the fight against “black money” trafficking, significant changes were introduced by Law 4.816/2021, which amended provisions of the basic law on money laundering (4.557/2018) and changed, among other things, the list of offences included in the “basic offences”. Thus, the basic crimes that now trigger criminal proceedings for money laundering include evasion of payment of income tax, VAT, VAT on ships, excluding those involved in false and fictitious invoices, as well as cross-border VAT fraud.
At the same time, the procedure for seizing and prohibiting the sale of assets was also changed, and provisions relating to banking, taxation, telecommunications, stock exchanges and any other confidentiality do not apply to defendants. In any case, for housing auctions, but also for the decision on tax disputes, the courts closest to the debtor’s or taxpayer’s registered office are competent.
More specifically, based on the legislation in force, the crime of tax evasion is committed by anyone who intentionally: a) in order to avoid paying income tax, the uniform property tax (ENFIA) or the special property tax (EFA), conceals taxable income from any source or assets from the Tax Administration bodies, in particular by failing to declare or submitting an inaccurate declaration or by recording fictitious expenses (in whole or in part) in the accounting records or by citing such expenses in the tax return, in such a way that no taxable matter is demonstrated or is presented in a reduced form; b) in order to avoid paying value added tax, turnover tax, tax on insurance premiums and taxes, fees or contributions withheld and imputed, does not return or returns incorrectly or offsets or deducts them unduly, as well as anyone who misleads the Tax Administration by representing distorted facts as true, or by suppressing or unduly concealing true facts and does not pay them or pays them unduly or offsets them or deducts them or receives a refund, as well as whoever withholds such taxes, fees or contributions, c) in order to avoid paying the tax on the ship does not remit or unduly remits such tax to the State.
The role of the Authority
Regarding the actions of the Anti-Money Laundering Authority, based on article 34, paragraph 1 of Law 4,557/2018, it may transmit and exchange confidential information with the competent Public Prosecutor’s Office or other authorities with investigative or auditing responsibilities, as well as with the supervisory authorities of article 6 of Law 4,557/2018, provided that such information is considered necessary for its work and the fulfillment of its legal duties.