A package of interventions to drastically reduce tax evasion in order to boost public revenues, which will pave the way for additional relief and benefits, according to the government plan that the Prime Minister is expected to announce next Saturday at the TIF.
The matrix of measures includes interconnecting all cash registers with POS and extending them to all sectors of the economy, changes in the tax regime for freelancers, strong incentives for citizens, expansion of electronic transactions and activation of new modern tools and artificial intelligence.
In particular, the Action Plan foresees the following:
- Interconnection of 400,000 cash registers and 140,000 special tax devices with business POS within the first months of 2024.
- Expansion of POS to more economic activities as currently it is not compulsory for dozens of business premises to have POS, such as gyms, tutorials, car parks and cinemas.
- Changes to the tax framework for self-employed persons, focusing on the expenses deductible from their gross income. For better control of expenses, only expenses that pass through the MyDATA electronic books will be recognized, while interventions in the tax rates are not excluded.
- Expansion of electronic transactions with payment exclusively through POS of services provided by specific professional sectors such as doctors, lawyers, electricians, plumbers, etc.
- Extension and mandatory use of electronic invoicing.
- Establishment of a digital delivery note that will allow in real time to control the movement of products (construction, agricultural, etc.).
- Simplified invoice with a reduction from 100 to 50 euros.
- New incentive framework for electronic receipts from 20 professions that will be more attractive to taxpayers so that they will not choose to pay with cash.
- Introduction of a special tax deduction on the settlement of the tax return for taxpayers who reveal instances of non-issuance or issue of fictitious receipts through the "Appodixi" application. It is noted that the initial design provided for the provision of a graduated cash reward with a maximum of 1,500 - 2,000 euros. However, a combination of the two incentives is not ruled out, so that citizens use the mobile app to check the authenticity of receipts.
- "Locking" the pre-filled codes relating to income and expenses as reflected in the myDATA data in the VAT returns and the E3 form for businesses and professionals.
- Review of penalties for formal and substantive breaches of tax legislation.
- Use of artificial intelligence to identify cases of tax evasion which will enable audit authorities to carry out express cross-checks and have a complete picture of the financial profile of taxpayers. According to the plan, the AADE will apply the new artificial intelligence system to the entire tax system by identifying cases of income concealment, non-refund and fraud in VAT, customs duties, excise duties, intra-group transactions, etc.