Hardly paid taxes, but private jet pictures on Instagram? In Greece, AI will be able to detect such discrepancies in the future. Extreme Photographer/Getty Images
Greece has a problem with tax evasion. According to the Greek Eurobank, the shadow economy amounts to up to 30 percent of the gross domestic product.
A tax law that came into force at the beginning of the year is intended to help, reports the “Handelsblatt”. In the future, artificial intelligence will also be used.
It is intended to create risk profiles and provide evidence of tax violations, which then enables targeted audits – and also collects discrepancies regarding self-portrayal on social media.
Anyone who barely reports any income to the tax office but regularly spills champagne on Instagram or sits in the infinity pool could have problems in Greece in the future. In the future, the tax authorities want to rely on artificial intelligence (AI) as a weapon against evaded taxes – and with its help not only scrutinize transactions, but also posts on social media. This is what the “Handelsblatt” reports.
The country has a problem with tax evasion. It is considered one of the causes of the Greek debt crisis. According to “Handelsblatt”, a study by the Greek Eurobank puts the shadow economy at up to 30 percent of the officially determined gross domestic product (GDP). That would have been around 62 billion euros in 2022. In terms of declared income, around 48 billion euros must have passed the tax office in 2021, according to the “Handelsblatt.”
A new law that came into force at the beginning of the year is intended to help combat tax fraud. As part of this, self-employed people will be expected to have a presumptive minimum income, which they will have to pay tax on. The aim is to prevent doctors, bakeries or taxi owners, for example, from billing their income to the tax authorities. Anyone who contradicts the minimum income must have their finances checked. Cash transactions over 500 euros will now also be punished more harshly.
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Artificial intelligence should also find tax evaders on Instagram
But the country also relies on technology. Card readers are already being used at weekly markets. AI should also help in the future, according to the “Handelsblatt”. At least according to Giorgos Pitsilis, head of the Independent Authority for Public Revenue (AADE).
AI should help the authority create risk profiles – and thus obtain information about likely tax offenses. It should be able to identify “unusual transactions” and relationships between taxpayers.
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But that’s not all: she should also examine external sources. For example, anyone who reports low income but poses with Lamborghinis on Instagram or takes a champagne bath will have to be more careful in the future. The information collected should then enable a tax audit.
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