The issue arose when the taxpayer declared income that was automatically reported by her bank as employment earnings, resulting in income tax and a solidarity levy. However, she argued that the amount was not actually salary but came from an investment account used to support employee mortgage loans. When she requested a correction from the Marousi Tax Office, the request was silently rejected.
She then filed an administrative appeal, but tax authorities dismissed it, claiming her request was not a correction but a legal dispute over how the income was classified. With no other recourse, she took the case to the Administrative Court of First Instance in Athens. The court overturned the tax office’s decision and ordered a review by the Dispute Resolution Directorate.
A new tax audit found that most of the disputed amount related to a previous tax year that had already expired under the statute of limitations, meaning it should not have been taxed in 2015. The remaining portion should have been taxed as investment income rather than employment income. As a result, tax authorities were instructed to issue a revised tax assessment, correcting the error.
Undoubtedly, this case raises serious questions about the efficiency and fairness of Greece’s tax system. The tendency of tax authorities to dismiss amendment requests without thorough examination not only places an undue burden on taxpayers but also undermines trust in the administrative process.
