How Greece Is Slashing Tax Fines – Who Stands to Benefit and by How Much

11:26 2/6/2025 - Πηγή: Dikaiologitika

Greece has introduced a new legal framework that allows significant reductions in tax fines for businesses and individuals who accept the findings of tax audits without contest.

The move is part of a broader effort to streamline tax collection and reduce the backlog of disputes in administrative courts, where cases can take years to resolve. Under the new law, which forms part of an out-of-court settlement mechanism, fines imposed by tax authorities can be reduced by 25% to 50%, depending on how quickly the taxpayer agrees to settle the assessed amount.

The maximum reduction of 50% applies when the taxpayer accepts the tax assessment within ten days of being notified by the auditing authority. The longer the delay in acceptance, the smaller the reduction. This incentive is designed to encourage swift resolution and minimize litigation.

Eligibility for the scheme extends to all natural persons and legal entities that have been audited and formally notified of a tax or fine assessment. To benefit from the reduction, they must declare their acceptance of the main tax liability within the legal deadlines.

Once a taxpayer accepts the debt, they must pay 25% of the total settled amount within three days. The remaining balance can be paid in up to twelve monthly installments, using Greece’s standard tax installment scheme. The fine reduction, however, is only finalized once all payments have been made on time and in full. Until that point, the portion of the fine marked for cancellation remains suspended but not enforced.

In most cases, the reduction is applied automatically by the Independent Authority for Public Revenue (AADE) upon the taxpayer's electronic declaration of acceptance. However, if the debt has already been paid before the declaration is submitted, the taxpayer must formally request a refund or the cancellation of the fine. This is done by submitting a statement through AADE’s online platform and, where relevant, forwarding proof of submission to the appropriate department, explicitly invoking Article 75 of Law 5104/2024.

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