Why is AADE targeting 55,000 taxpayers for retroactive payments?
The Greek Independent Authority for Public Revenue (AADE) has identified a significant discrepancy between received income and declared tax returns for the year 2020. Through advanced electronic cross-referencing of data, the authority discovered that a subset of taxpayers received retroactive amounts—stemming from salary increases, pension adjustments, or judicial decisions—without updating their tax filings.
The scale of the investigation is substantial. Out of approximately 878,000 taxpayers who received retroactive payments in 2020, AADE reports that 761,000 (87%) have already submitted the necessary amended declarations. However, the remaining 55,000 individuals have been flagged for potential tax evasion or oversight. For these targeted taxpayers, the estimated tax liability is expected to be at least €100 per person, though actual amounts may vary based on individual income levels.
This enforcement action is part of a broader strategic move by AADE to utilize digital cross-checks to close tax gaps. By identifying income that does not match reported figures, the authority aims to ensure fiscal compliance and settle outstanding tax debts before the end-of-year administrative deadlines.
How can taxpayers identify if they have received an AADE notification?
Taxpayers can check their status through two primary digital channels provided by the Greek tax administration. The AADE has moved away from traditional paper mail to a more efficient digital-first approach to ensure rapid communication with the 55,000 individuals in scope.
- Email Notifications: Direct alerts are sent to the email addresses registered with the tax authority.
- myAADE Digital Portal: Notifications are uploaded directly to the personalized digital mailboxes within the myAADE platform.
The authority is currently monitoring the response rate to these alerts. According to AADE data, 30% of the taxpayers who have already received a notification have responded by submitting the required amended returns and settling their tax liabilities. To prevent further delays, the administration is implementing a tiered communication strategy: those who do not respond to the initial digital alert will receive reminder messages, and the authority has also scheduled direct telephone communications to reach remaining debtors.
What is the procedure for filing amended tax declarations?
Filing for retroactive payments requires a specific technical approach to ensure the income is attributed to the correct fiscal year. Taxpayers cannot simply add the amount to their current year's filing; instead, they must submit a separate amended declaration for every specific tax year to which the retroactive amount pertains.
Step-by-step filing process for retroactive income
For income received in 2020, the filing process follows a specific chronological logic. For instance, if a taxpayer receives retroactive pension payments regarding the 2020 fiscal year, they must submit an amended declaration for the 2021 tax year. In the digital system, this means selecting the 2021 submission year to reflect the adjustments.
For all years from 2015 onwards, the process is entirely electronic. Taxpayers should navigate to the 'Amended Declaration' (Tροποποιητική Δήλωση) section and select the 'Retroactive E1 Declaration' (Δήλωση Αναδρομικών Ε1) option. A key feature of this digital system is that the retroactive amounts are pre-populated in the corresponding fields. This prevents taxpayers from inadvertently altering other sensitive data within the declaration, ensuring the integrity of the tax audit process.
The types of retroactive income covered by this procedure include:
- Adjustments resulting from new legislation.
- Payments mandated by judicial decisions.
- Increases following collective bargaining agreements.
- Delayed payments of salaries, pensions, or allowances.
How can taxpayers manage the resulting tax debt?
To mitigate the financial burden on taxpayers, AADE has introduced a structured repayment plan under Circular E.2060/2026. This regulation allows individuals to settle their outstanding debts through installments rather than requiring a single lump-sum payment.
Currently, the available option is a repayment plan consisting of up to 72 monthly installments. It is important to note that while there have been discussions regarding extending this to 120 installments, such an expansion has not yet been passed by the Greek Parliament. Therefore, taxpayers should plan their finances based on the 72-installment limit.
The mechanics of the 72-installment plan are designed to be accessible. To qualify for the maximum number of installments, the minimum monthly payment is set at €30. This implies that for a taxpayer to fully utilize the 72-month window, their total debt (including interest) would ideally be around €2,160. This structured approach allows for gradual settlement, reducing the immediate impact on household liquidity.
Exemptions from the notification process
The AADE has established specific humanitarian and social criteria for those excluded from this enforcement wave. The following groups are not subject to the current round of digital notifications:
- Deceased Taxpayers: Notifications are not sent to the estates of the deceased in this specific automated sweep.
- High Disability Rates: Taxpayers with a certified disability rate exceeding 67% are exempt from these specific notifications.
Frequently asked questions
How do I declare retroactive pension payments from 2020?
You must file an amended declaration for the 2021 tax year. Access the myAADE portal, select 'Amended Declaration,' and then 'Retroactive E1 Declaration.' The system will pre-populate the 2020 retroactive amounts for you to ensure accuracy and compliance with AADE regulations.
Can I pay my retroactive tax debt in more than 72 installments?
Currently, the maximum allowed is 72 installments under Circular E.2060/2026. Although there is legislative discussion regarding a 120-installment option, this has not yet been approved by Parliament. You should prepare for a maximum of 72 monthly payments.
What happens if I ignore the AADE notification?
Ignoring the notification will likely lead to further enforcement actions. AADE is moving from digital alerts to reminder messages and direct telephone calls. Failure to settle the debt may result in interest accumulation and potential legal complications regarding undeclared income.
Is there a minimum amount for the installment plan?
Yes, to take advantage of the full 72-installment schedule, the minimum monthly installment is set at €30. This is intended to make the repayment process manageable for the majority of taxpayers facing these retroactive adjustments.
What types of income trigger these retroactive declarations?
The trigger includes any income received retrospectively due to court rulings, changes in labor laws, collective agreements, or simply delayed payments of wages, pensions, or social allowances that were originally owed for previous years.
Key takeaways
- AADE is targeting 55,000 taxpayers for undeclared 2020 retroactive payments.
- 87% of eligible taxpayers have already filed their amended declarations.
- Taxpayers can settle debts through up to 72 monthly installments.
- The minimum monthly installment required for the 72-month plan is €30.
- Notifications are delivered via email and the myAADE digital portal.
Conclusion
The AADE's targeted campaign against undeclared retroactive payments highlights the increasing sophistication of Greek tax administration through digital cross-referencing. By identifying the 55,000 taxpayers who missed the 2020 reporting requirements, the authority is working to ensure fiscal fairness. While the requirement to file amended declarations for specific years may seem complex, the digital tools available via myAADE and the 72-installment repayment option are designed to facilitate compliance. Taxpayers are encouraged to act promptly upon receiving notifications to avoid further interest or administrative penalties.
