The Tax Procedural Code (TCP) defines the powers of the tax administration and establishes the conditions and limits of the audit, the access of auditors to the premises to business books and data, etc. Verification of tax compliance by a taxpayer can be carried out in the form of a tax audit:

(a) From the offices of the tax administration, on the basis of financial statements, reports and other documents submitted by the taxpayer, as well as other data in the possession of the administration.

b) on-site tax audit: the decision to conduct an on-site tax audit must be brought to the attention of the taxpayer with prior written notification (except in cases where there are signs of tax evasion). Any other on-site tax audit may be carried out without prior notice.

The tax administration has the right to receive copies of books and data, as well as other documents. The auditor may require the presence of the taxpayer or his tax representative at the place of the tax audit and answers to the questions put to him in order to facilitate the tax audit. If the books and records are kept in electronic form, the tax administration has the right to access any relevant records. In particular, the taxpayer (and those third parties that provide digital services to the taxpayer) are required to provide all the necessary information for the auditor’s unhindered access, regardless of the location and format of this data.

An official appointed by the tax administration may confiscate tax books and data, as well as any other unofficial books, documents, records or data that he deems necessary to ensure their probative value.

To do this, a confiscation act is drawn up, which is signed by the tax administration body that carries out the confiscation, and by the taxpayer himself or his representative, who is given a copy. For the seizure of books, documents and other data of a third-party taxpayer, it is not required to serve him with an act of seizure.

To conduct a tax audit on the premises of an organization, employees of the tax inspectorate have with them a written order to conduct an on-site tax audit, which indicates at least the number and date of the order, the name of the employee (employees) to whom the tax audit is scheduled, the details of the taxpayer, the tax period or case, and the type of taxation subject to the tax audit, the duration of the tax audit and the mark “full” or “partial audit”, if applicable.

An employee appointed by the tax administration to conduct a tax audit must present an identity card and a tax audit report before the start of the tax audit.

Entry into the place of residence of the taxpayer is permitted only by order of the competent prosecutor, and the check is carried out only in the presence of a bailiff. The taxpayer is obliged to fully cooperate and facilitate the work of the official of the tax administration. The latter may not move the books and data or documents provided to him to another place, except in cases where the taxpayer is unable to immediately provide true and accurate copies. In this case, documents and data can be taken out of the premises against signature and returned to the taxpayer within 10 days from the date of receipt.

Ms. Jeni Panu is the head of the tax department of Accounting Solutions SA (www.asnetwork.gr).