A new cycle of electronic crossings is opened by ADE by targeting employees and pensioners who submitted a tax return in 2023 for the incomes of 2022.

The checks shall focus on unreported retroactive remuneration, corrected remuneration attestations not accompanied by amending declarations and deviations between the E1 data and the data already available to the tax administration.

Cases that enter the microscope
The interest of the tax control mechanism is mainly in the case of taxpayers for whom later corrected salaries or pensions were issued, but without the submission of the required amending declaration.

The aim is to identify undeclared amounts and restore any deviations between the declared income and the data transmitted to the ADE by employers, insurance funds and other bodies.

According to the operational plan of the ADE, electronic cross-checks for the compliance of taxpayers with the pre-paid remuneration and pension codes of the tax year 2022 will be completed by 31 July 2026.

After the process has been completed, tax administration services will have a full picture in their hands of cases of divergence.

Checks will focus on three main categories of cases. The first concerns the pre-paid pay and pension codes appearing in tax returns. The second concerns retroactive remuneration resulting from the attestations of employers but were not reported by taxpayers. The third relates to amending declarations which resulted in a tax refund or a reduction in the initial tax burden and which

they're going through a new audit.

The crossings will take place on the basis of the information already available to the ADE from the online insurance and pension certificates. The amounts shown in Form E1 will be compared with the data sent by employers, insurance funds and other bodies in order to identify differences that may affect the tax due to each taxpayer.

After the checks have been completed, the sending of information messages to the taxpayers who show deviations will begin. These taxpayers will be required to submit amending declarations in order to correct their data and to harmonise them with the data available to the tax administration.

Those who ignore the relevant notices risk being faced with an administrative determination of tax by the conformity services and the KEYDE, which may lead to additional tax charges, increases and tax charges.

Particular attention is required in the pre-paid wage and pension codes, as taxpayers cannot modify them themselves. If an employee or a pensioner finds that the amounts shown in E1 are incorrect, he should address the employer or the institution which issued the relevant certificate to send a corrected file to the ADE.

After submission of the corrected data by the issuer of the certificate, the tax administration shall proceed to a new clearance of the declaration and recalculation of the income tax.

Through this new cross-check exercise, AADE attempts to detect undeclared retrospective and tax omissions of previous years, using its electronic data to enhance tax compliance.