H&M: A new “shield” mechanism for tax violations

A new electronic mechanism that presses “red” every time the company “forgets” to send within 24 hours to the AADE the data of the receipts it issues in its transactions, is activated by the Tax Authority, after the disclosure of the H&M case.

Once the alarm is sounded, AADE’s “rambus” will be mobilized and a comprehensive inspection of the works will begin.

Already, thousands of professionals, companies and multinationals operating in Greece are on the radar of the tax oversight mechanism using a special algorithm that “conducts” comprehensive checks and checks on millions of data reflected in retail sales receipts and invoices sent to its AADE (myDATA, e-send) platforms.

H&M: Differences in VAT returns

Through a new type of cross-checking conducted by AADE, it was revealed that in H&M branches, some cash desks had not sent thousands of receipts to AADE.

After the 48-hour “lockdown” and fines imposed on the five branches of the multinational company, tax auditors “paper and feather” the company’s books with the first information indicating that discrepancies in the details of the receipts issued with the data entered in the monthly VAT returns have already been identified.

Discrepancies in VAT returns meant that H&M branches not only sent AADE the receipts data they had reduced, but also concealed income from the retail sales they made.

The tax audit process continues and, as relevant actors reported, when it is completed “we will know whether the company, apart from the penalties for not submitting data to the AADE, will also face the bells of tax evasion.”

Penalties

Under the current system, failure to submit retail sales data to AADE is punishable by a “lockdown” of 48 hours to 10 days, just as failure to issue receipts also applies. In particular, a professional organization shall be suspended if, after verification, it becomes clear that data has not been issued, is inaccurate, or has not been transmitted:

Ø Immediately for 48 hours, if it is proven by the same control that no more than 10 sales documents have been issued or inaccurately issued or regardless of the number, the net value of the goods or services for which no sales documents have been provided issued or the hidden value of those issued, respectively , exceed 500 euros, either non-transferable to the AADE, more than 10 items of retail sales issued through the Electronic Tax Mechanism (TEM), or regardless of the number of them that the non-transferable value of the goods or services exceeds 500 euros,

Ø Indefinitely for a period of ninety-six hours, if it is found again during the same tax year or the following tax year in the same or another professional institution of the debtor, through the same control, either non-issuance or inaccurate issuance of at least 3 document sales, or submit at least 3 items of retail sales to AADE, regardless of their value,

Ø Without a delay of 10 days, when within two tax years any professional institution of the debtor is found by the same audit to have either not issued or inaccurately issued at least 3 sales documents, or not transmitted to the AADE at least 3 sales statements A hash issued through the FIM, regardless of its value.

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