October brings a “reduction” in fines for taxpayers who “confess” to tax evasion without contesting the debt resulting from a tax audit carried out by AADE.
The new measure, which comes into force on October 1, foresees that the reduction will vary between 25% and 50%, but will only affect those who recognize their debt and do not resort to the administrative courts to cancel the tax and fiscal audit that the Tax Office will have determined for them.
It should be noted that the aim of the new regulation that comes into force next month is to immediately collect taxes and fines calculated by the audit authorities, but at the same time to relieve the courts of possible appeals against the public.
It should be noted that the reduction of up to 50% of fines, in accordance with the new extrajudicial liquidation procedure, will be made under two conditions, namely if the debtor does not contest the debt arising after the tax audit, but also that the debt will be accepted immediately in the amount charged to them by the Tax Office.
In this context, the new “package” of fine reductions “offered” by the Tax Office provides for the following:
- the fine is reduced by up to 50% if the main tax debt is accepted and the respective declaration is submitted within 10 days after the auditors’ notification of the respective tax. It should be noted that based on the regime currently in force, a 40% reduction of the fine for income tax and VAT is provided for if the declaration is submitted before notification of the corrective assessment and the total amount of the debt (main tax, proportional fine and interest) is paid within 30 days after submission of the original overdue or amended statement.
- the fine is reduced by up to 40% if the main tax debt is accepted after the tax notification but before the appeal to the Dispute Resolution Directorate (DDR).
- the fine is reduced by up to 30% if the main tax debt is accepted before an appeal is filed with the competent administrative court.
- the fine is reduced by up to 25% if the main tax debt is accepted before the start of the hearing in the competent court.
In any case, after the reduction of the fine, 25% of the total amount of the debt must be paid within three days from the acceptance of the respective request, which will be made electronically through an online platform, the activation of which is scheduled for October 1, 2024. The remaining debt must be paid in up to 12 monthly installments, through a permanent regime of the Ministry of Finance.
Late payment of an installment or non-payment in the case of a single payment results in the withdrawal of discounts and the return of the original debt, that is, before the reduction of the fine.
It is worth noting that those who are interested and wish to reduce the fine that has been submitted to them must, from October 2024, notify AADE of their intention, with a relevant statement that will result in the irrevocable acceptance of the results of the tax audit and the temporary or definitive act of determining the tax or the act of applying a fine or the decision of the RTE.