Special Report 5/2014

Audit of the internal control system in the Local Tax Office of Attica

The main conclusion of the audit consists of the identification of significant deficiencies affecting the completeness of the State’s tax revenues from freelancers, mainly referring to insufficiencies in the internal control of the audited entity for: a. the prevention and confrontation of errors,omissions, fraud and corruption and b. the safeguarding of the existence and completeness of the tax population, as well as of tax revenues resulting from tax audits.

The most significant audit findings include lack of cross-checks with third parties (e.g. financial institutions, Social Security Funds, State’s Registries e.t.c.) of information related to freelancers’ completeness and ability to pay taxes , the absence of formally recorded procedures, risk assessment and procedures for the prevention and confrontation of the risk fraud and corruption at the Tax Office Level, the absence of the Internal Audit Department, within the Tax Office, and finally delays in the application of the Strategic Planning of Tax Administration (e.g. adoption of indirect tax audit techniques, compensating controls for authorization of tax books and records which has been abolished).