Digital tax dodgers in the nets of Independent Revenue Authority

A special group of Independent State Revenue Authority-AADE auditors is “scanning” social media. It searches Facebook, Instagram, TikTok to detect suspicious transactions, cases of illegal trade and enrichment. The case of the well-known influencer, who was caught evading taxes and is facing a fine of 270,000 euros, is one of the cases investigated by the tax audit mechanism, with the AADE preparing to announce new cases of tax evasion via the internet that were caught in the act with the help of of the special algorithm.

The AADE is increasingly tightening the control cord around those who operate through the internet with the intensification of controls being a priority of the AADE Commander Giorgos Pitsilis who has given instructions and goals to the auditors who now have new electronic tools at their disposal.

How they get caught in the AADE’s “trap”

The method used by tax inspectors to identify digital tax evaders is simple:

They “scan” social media focusing on individuals with hundreds of thousands of followers on Instagram, Facebook and Tik Tok who advertise everything from clothes and shoes to accessories and nutritional supplements.

They investigate whether influencers work with or own e-commerce businesses and undertake the promotion and sale of products and services.

They control every business, commercial transaction that takes place over the internet.

With the help of the special algorithm that runs combinatorial cross-checks, they see the incomes declared by the auditees at the Tax Office. In addition to the declared incomes of individuals and businesses, the turnover figures of e-shops are also checked. In fact, cases of sales of products have been identified without the initiation of activity at the Tax Office.

They collect information from courier companies about goods deliveries. In the case of the influencer, the deliveries of goods were much more than the turnover displayed by the online store for both years that were checked and finally it was found that hidden taxable material of almost 350,000 euros was due to the non-issue of tax information. AADE certified taxes after fines of 270,000 euros for the beginning and the audit continues.

At the same time, auditors use social media to collect information on auditees in order to find information that shows that they lead a luxurious lifestyle that is inconsistent with the income they declare on their tax returns. On the radar of the special group of auditors are dozens of cases with the aim of identifying companies that use social media, and do extensive tax evasion. In most cases, commercial enterprises are set up, which do not have a physical presence, but sell products through websites that are integrated into Facebook or Instagram. It is indicative that the audit will reach up to the number of members and friends of the auditee. Those found to be evading taxes will face the imposition of taxes and fines.