Audit teams use advanced algorithms and risk analysis to conduct lifestyle audits and identify taxpayers suspected of concealing undeclared income.
Greek tax authorities have launched a new round of cross-checks on taxpayers who report low incomes—around €10,000—but exhibit annual expenses of €50,000, €100,000, or even €200,000.
The Independent Authority for Public Revenue (AADE) has identified 800 individuals with significant discrepancies between their declared income and their cost of living, placing them under intense tax audits, including the opening of their bank accounts.
Among those targeted are 20 social media influencers, who are being investigated for undisclosed and undeclared income from sponsorships and product sales.
Intensified Audits for Suspected Tax Evasion
AADE Governor Giorgos Pitsilis revealed that the tax authority is conducting regular audits on approximately 800 individuals who declared incomes below €10,000 but were found to have much higher expenses that could not be justified by their declared income or other financial data available to the tax authorities.
These individuals are now required to prove the source of the additional funds they have spent. Those unable to provide sufficient evidence will face additional taxes and penalties.
How the Audits Are Conducted
According to the new audit plan, special investigative teams will employ an advanced algorithm and risk analysis criteria to identify taxpayers with significant discrepancies between income and expenses.
Individuals whose lifestyle does not align with their declared earnings or who own assets of unknown origin will be prioritized for audits. Authorities will apply indirect auditing techniques, such as:
Liquidity analysis of the taxpayer
Net worth evaluation
Review of bank deposits and cash expenditures.
Initial findings suggest that audits will focus on cases where declared income appears insufficient to cover reported expenses or unexplained increases in assets.
Tax Investigations Targeting Influencers
A separate audit is underway for 20 well-known influencers, suspected of concealing income from advertisements and product sales.
Tax authorities will cross-check financial transactions—including credits, withdrawals, and payments—against tax returns to detect undeclared income.
Using an automated algorithm, auditors are conducting extensive online investigations into influencers’ social media accounts on Instagram, TikTok, and Facebook.
How Authorities Track Down Digital Tax Evaders
The method used by tax auditors to identify digital tax evaders follows these key steps:
✔ Social media monitoring – Auditors scan social media platforms, focusing on high-profile users with hundreds of thousands of followers who promote products, from clothing and accessories to dietary supplements.
✔ E-commerce ties – Authorities investigate whether influencers collaborate with e-commerce businesses or hold stakes in such companies while promoting and selling products/services.
✔ Online transactions – Every business-related transaction conducted online is scrutinized.
✔ Algorithmic cross-checking – The special algorithm runs comprehensive cross-checks between declared incomes and actual financial activity, including personal and business tax filings, online store revenue data, instances where individuals have sold products without registering a business.
✔ Courier data collection – Authorities gather information from courier companies to verify the volume of goods delivered through unregistered businesses.
At the same time, tax auditors are leveraging social media activity to collect data and identify individuals whose lavish lifestyle does not align with their declared income.
Today, the European Commission decided to refer Spain to the Court of Justice of the European Union for failure to ensure correct implementation of the Merger Directive on the common system of taxation
The new president of the Central Bank of Brazil has linked the rapid growth of stablecoins with tax evasion and money laundering. He remarked that individuals use these tools for cross-border payments
A new version of the China International Economic and Trade Arbitration Commission (CIETAC) arbitration rules came into force on 1 January 2024. The update reflects best practice, taking account of
New developments have emerged in the Adani-Hindenburg row that began in January 2023 with the release of the first report by the US-based short-selling investment firm Hindenburg Research that alleged