Tax authorities in Greece are conducting widespread audits and cross-checks targeting tuition fees citizens pay to private schools, in a recent crackdown on unreported private education expenses.
The Independent Authority for Public Revenue (AADE) aims to ensure that citizens correctly report these expenses as part of their living costs on annual tax returns.
Under Greek tax law annual presumed living expense for private elementary and secondary education is determined for each student based on service receipts issued for tuition payments. Private educational institutions are obliged to send this information to the Independent Authority for Public Revenue (AADE) according to the tax ID number on the receipt.
The amount on this receipt constitutes a living expense, with the liable taxpayer obligated to declare it on the E1 tax return, including the details of the tax number of the individual responsible for paying the fees, the taxpayer’s full name along with a detailed account of all tuition and associated fees.
However, initial checks carried out by AADE have uncovered discrepancies with a number of taxpayers having not filled in the corresponding codes on the E1 form. This has prompted authorities to investigate close relatives, such as grandparents, who often take on the expenses of school fees, in which case the amount paid must be declared by the individual who made the payment.
Following the audit process, liable taxpayers will be called upon to provide explanations. For cases of past years nearing the statute of limitations, the tax authority will proceed with retroactive taxation by issuing a new tax assessment notice.
For cases of non-expired years, taxpayers will be obliged to present the necessary documentation and clarify the means by which tuition fees were paid.
It should be noted that taxpayers have the right to dispute the assessment if they believe it is inaccurate.
