Tourist vessels in Kos and Santorini face fines for tax non-compliance, as 75% of them are found to be in violation.
In a significant move to combat tax evasion in the tourism industry, the Independent Authority for Public Revenue (AADE) in Greece has launched an operation named "I'll take you on a cruise". Over a span of two months, from June 1 to July 15, inspectors carried out 9,140 audits across the country, uncovering violations in 3,120 businesses.
The operation targeted day-cruise operators on the islands of Kos and Santorini. In Kos, teams of inspectors issued fines and initiated long-term audits of shipping companies after discovering that eight vessels were inspected, six of which were found in violation. This resulted in a 75% rate of violations. Similarly, in Santorini, authorities checked boats after sunset cruises, launching surprise inspections. Inspectors from the AADE boarded tourist boats disguised as travelers and uncovered widespread violations, with 10 of the 23 boats checked found to be in violation, mainly for missing or inaccurate receipts and cash payments over €500 without bank transfers.
Fines totaled €14,140 in Santorini, with an additional €20,000 in financial penalties. Further investigations in August revealed significant cases of evasion in Mykonos, including an art shop that withheld €107,000 in receipts and €26,000 in VAT, leading to a two-day closure.
A cafe in Crete failed to report receipts worth €275,000, a carpentry business in Paros hid €111,000 in income, and a supermarket in Gytheio failed to declare €101,000. These common violations included no receipts for drinks and snacks, failure to issue tickets, and concealed revenues.
In an effort to detect tax cheats, authorities are using algorithms, artificial intelligence, and drones. However, specific details about the algorithms and drone technologies used in Greece are not readily available in the search results.
The latest operations send a message that authorities are intensifying controls ahead of the 2025 autumn tourist season. Tax evasion in the sector has long been a challenge, depriving the state of revenue and creating unfair competition. The tourism industry contributes nearly 25% of Greece's gross domestic product (GDP), making it crucial for the government to address this issue.
In a notable case, a well-known rapper was caught routing over €1 million in royalties through a nonprofit organization to buy luxury goods and supercars. The rapper now faces more than €500,000 in taxes and fines.
The operation in Kos was carried out in coordination with the Hellenic Coast Guard. The operation "Operation Summer" is a wider campaign by AADE targeting tax violations in tourism-heavy regions in Greece. With these operations, the Greek authorities aim to ensure a fair and transparent tourism sector, benefiting both businesses and the state.
