The Independent Authority for Public Revenue (AADE) is set to audit approximately 12,000 taxpayers identified through electronic cross-checks as having either concealed income or failed to file tax returns for the 2025 tax year. The AADE plans to issue related notices during 2026 to complete these procedures before the statutory limitation period expires.
Penalties and Estimated Tax Assessments
Those found not to have filed returns will face not only additional taxes but also substantial fines and surcharges on the undeclared income. In parallel, the AADE intends to introduce ‘estimated tax assessments’ in the second half of 2026—applying even to individuals and legal entities who have not submitted any tax return. To determine likely income levels, the authority will draw on data related to lifestyle, consumer spending, professional activity, and business transactions.
Data Sources and Automation
These cross-checks rely on existing information held by the tax administration—including data from employers, banks, digital platforms, and other public and private databases. For taxpayers who fail to submit returns, the AADE will automatically issue tax assessments. Fines will range from 10% to 50% of the assessed tax amount.
Next Steps for Taxpayers
Recipients of these assessments will have 30 days to settle the amount in full—or to file a late tax return, triggering a revised assessment that includes applicable surcharges and interest. It’s worth noting that the deadline for submitting this year’s tax returns is 15 May, with taxpayers who pay their tax liability in a single payment by that date eligible for a 4% discount.