The taxman is coming for 700 freelancers, and it's not just about the money. The Independent Authority for Public Revenue (AADE) is gearing up for a massive audit, targeting those who have disputed their presumed income and are requesting a review of their tax burden. This move is a strategic attempt to uncover the true financial picture of professionals, as declared incomes often fall short of reality. With the new framework, the tax administration aims to paint a more accurate financial portrait, considering that the declared incomes often do not correspond to reality. The AADE is preparing audit orders on income and assets, and those who have declared in this year's tax return that they dispute the tax imposed on them based on the system of minimum presumed income will be targeted first. This will extend to professionals who declare particularly low incomes as well as increased expenses. The AADE Business Plan forecasts the completion of at least 700 targeted audits within 2026 on freelancers and their associates. Last year's tax returns revealed a concerning trend: the average annual declared income of half of the professionals had reached only €3,665, or €305 per month. This prompted the activation of the presumption of income for 387,532 taxpayers out of a total of 714,465, artificially raising their income to €13,107, which in turn meant average tax dues of €1,815. This data highlights the perennial issue of tax evasion, as the numbers are too low to be convincing. The state now believes that maintaining the existing system of taxation of freelancers is completely justified, since a large percentage continues to show fictitious incomes, hiding most of the real profits. The audits will delve into invoices, income, and expenses, cross-referencing them with myDATA data. This will expand to bank deposits, cryptocurrencies, movable and immovable assets, and even expenses for holidays and personal or family trips in Greece and abroad. Professionals who request an audit due to disagreement with their tax obligations should declare their intention to dispute the minimum income in their timely tax return, requesting a tax audit. This move is a significant step towards transparency and fairness in taxation, ensuring that everyone pays their fair share. However, it also raises questions about the potential impact on freelancers' livelihoods and the ethical considerations of such extensive audits. As the taxman closes in, freelancers must be prepared to provide comprehensive documentation and be ready to defend their financial decisions. The outcome of these audits will have far-reaching implications for the freelance community and the broader economy, underscoring the importance of transparency and accountability in the tax system.
