The Independent Authority for Public Revenue (AADE) is conducting extensive electronic audits, reviewing tax returns filed in 2023 by employees and retirees, with the aim of identifying cases in which retroactive amounts or additional income arising from the issuance of corrected certificates by employers, social security funds, and other competent authorities.
This initiative is included in the tax administration’s operational plan and involves verifying the correct completion of pre-filled income and pension codes for the 2022 tax year, as reflected in the tax returns filed in 2023. The cross-checking process is expected to be completed by July 31, 2026.
The focus of the audits is on retroactive income arising from employer-issued certificates that was not included in the tax returns, as well as amended tax returns that resulted in a tax refund or a reduction in the tax originally assessed. At the same time, the accuracy of the pre-filled data regarding salaries and pensions will be examined.
For this purpose, the tax administration will compare the amounts listed on Form E1 with the data from the income and pension statements submitted to the AADE by employers, social security agencies, and other entities.
Once the cross-checks are complete, the Tax Compliance Directorate will evaluate the results and, by the end of July, will begin sending notification letters to taxpayers for whom discrepancies are found between declared and actual income. Those concerned will be asked to submit the necessary amended returns.
In cases where there is no response to the relevant notifications, the compliance departments of the AADE and KEFODE will proceed with an administrative assessment of the tax owed.
It should be noted that under the current tax filing system, the codes on Form E1 pertaining to wages and pensions are pre-filled by the AADE and cannot be altered by taxpayers.
If a taxpayer finds an inaccuracy in the amounts listed, they should contact the entity that issued the relevant certificate so that the error can be corrected and the updated file resubmitted to the AADE’s digital platform. After the new information is submitted, the tax administration will perform a new assessment of the return and recalculate the income tax.
