Last summer, freelance professionals took a first step toward challenging the Greek state over the new presumed income system by filing appeals with the Dispute Resolution Directorate (DED), citing constitutional objections to the procedure. However, these appeals were inevitably rejected, as DED is not empowered to assess the constitutionality of laws.
Freelancers now have the option to escalate their cases to the administrative courts and, if desired, request a hearing before the Council of State, the country’s highest administrative court, given that this issue affects hundreds of thousands of professionals. Importantly, taxpayers must first appeal to DED before they can pursue a case in the tax court.
Meanwhile, professional associations have independently filed appeals with the Council of State, seeking to annul the decisions made by the administrator of the Independent Authority for Public Revenue (AADE). As a result, two distinct legal processes with the same objective are now underway.
As mentioned, DED has thus far consistently rejected appeals, effectively upholding the tax clearance notices issued under the presumed income system. Freelancers who filed these appeals argue that their taxation should be based on their declared incomes – often significantly lower than the presumed figures – and have called for the annulment of the tax clearance notices. In one notable instance, the declared income was zero.
DED stated that the appeals are based on constitutional provisions, the review of which lies exclusively within the courts’ jurisdiction and not within DED’s authority.
Tax office data reveals that freelancers with presumed incomes declared exceptionally low figures this year, averaging just €3,215 annually, or €268 per month – marking a decrease even compared to 2023.
Source: Freelancers challenge presumed income system in court | eKathimerini.com
