Newsroom
The Audit Office has raised concerns over €3.1 billion in delayed tax revenues owed to the state, warning that around €1.4 billion may never be collected. Its 2023 audit of the Tax Department revealed significant weaknesses in revenue management despite recent increases in overall collections.
The report found that tax assessments are often imposed past legal deadlines, and that many companies with unusual financial activity have not been adequately audited. It also noted improper classification of overpayments, unlawful interest payments to taxpayers, insufficient VAT monitoring, and tax refunds issued without verifying outstanding debts.
While tax collections grew by 18% in 2022, 14% in 2023, and 12% in 2024, delayed revenues rose from €2.2 billion in 2021 to €3.1 billion by the end of 2023. The Audit Office also flagged a failure to track individuals and businesses that failed to submit income tax returns on time, with over half of sampled companies and 30% of individuals delinquent for multiple years.
The office urges the Tax Department to act swiftly to curb unpaid receivables by fully using legal tools, updating taxpayer databases, and improving monitoring systems to protect state revenues.
