How can evidence be "covered" in the tax return?
It is known that where the total income declared by the taxpayer and his spouse is lower than the income determined on the basis of the "evidence", the resulting difference is taxed on a case by case basis as income from paid employment, from business activity etc.
At the same time, the imputed income is also burdened with a special solidarity contribution.
In order to avoid this, taxpayers have to cover the resulting difference by stating in their tax return the following amounts, which must actually be collected and for which they bear the burden of proof:
a) Actual income earned in the relevant year, in Greece or abroad, by the taxpayer himself, his spouse and his dependents, which are exempt or taxed in a special way. Such incomes include compensation for dismissal from work, profits from mutual funds, interest on treasury bills and government bonds, interest on deposits in banks, etc.
b) Monies not considered as income under the provisions in force (e.g. one-time compensation due to retirement, compensation from an insurance company, etc.).
c) Cash from the disposal of assets (e.g. real estate, cars, movables, shares, bonds, unit certificates of mutual funds and other securities) in the relevant year. The purchase price received is deducted from the acquisition cost, i.e. the price paid in the same or a previous year for the purchase of the asset.
d) Foreign exchange rates (or even euros) introduced by the taxpayer in Greece, if their acquisition abroad is justified. For the amounts imported, an original document issued by the bank is required to verify that the taxpayer is the beneficiary of the imported money, the amount of the amount contributed, the currency, his europayment and the country of origin.
e) Loans received in the relevant year and evidenced by a notarial document or a private document of a certain date.
f) Donation or parental provision of money for which the relevant tax return (gift or parental benefit) has been submitted by the end of the year in which the expenditure was incurred.
In all the above cases, when the expense for acquiring an asset has to be covered, it must be proven that the relevant amount was collected before the relevant expenditure was incurred.
Early Year Exhaustion
Another way of covering the evidence is the consumption of capital that is proven to have been taxed or legally exempt from tax in previous years.
Of course, any amount paid to obtain the income claimed by the taxpayer should be deducted and only the resulting balance can be used to cover the evidence.
G. Samothrakis, J. Panou
Posted on Sunday newspaper, "Kathimerini", on 08/04/2018