The audit mechanism of the tax office is targeting 700 freelancers who have disputed their presumed income and are requesting a review of their tax burden, effectively opening the door to in-depth audits of income, banking transactions, assets and consumer spending. With the new framework, the tax administration is attempting to map the true financial picture of professionals, considering that the declared incomes often do not correspond to reality.
The Independent Authority for Public Revenue (AADE) is preparing the audit orders on income and assets, while in the fall those who have declared in this year’s tax return that they dispute the tax imposed on them based on the system of minimum presumed income will be targeted. That will be extended to professionals who declare particularly low incomes as well as increased expenses.
The AADE Business Plan foresees the completion of at least 700 targeted audits within 2026 on freelancers as well as people in their environment.
Last year’s tax returns showed the average annual declared income of half of the professionals had reached only €3,665, or €305 per month. The result was to activate the presumption of income for 387,532 taxpayers out of a total of 714,465, artificially raising their income to €13,107 that meant average tax dues of €1,815.
