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The completion of an inventory of real estate, which will be finalised in the near future with the submission of E9 forms, will be a significant step towards the creation of an electronic property register. A common register is a prerequisite for the implementation of the plan for the cancellation of the proof of living expenses, since the main objective is the creation of a list of all expenses and incomes of taxpayers.

It should be noted that from the moment this measure will come into force, taxpayers will not have to face a "theoretical" income which will be received because they have a house, car or boat. The tax office, based on new data that will be created, will monitor actual transactions and will benefit earnings based on them. This means that tax authorities, through indirect control, will describe whether there is undue investment in the bank accounts of a taxpayer, whether there are significant expenses and whether these expenses correspond to the income of the tax return.

This is a radical change to the current system, since tax authorities will levy taxpayers on the basis of actual events (cost deposits) and not based on theory and suspicion.

It should be mentioned that during the current year data required for the register will be collected in order for a complete picture to be compiled in 2014. Based on the registry, all incomes and property data of about 6 million taxpayers will be controlled and cross-checked.

In particular, the electronic register will contain analytical data on incomes, real estate, bank deposits, as well as a profile of taxpayers in terms of their bank accounts, credit cards, consumer and mortgage loans, life insurances, phone bills, as well as consumption of electricity and water.

"Where did you get it from?"

For the first time, the origin of property will be controlled by electronic means through the development of systems that will cross-check all existing data, not only those of the Ministry of Finance, but other databases of government services, too.

With the full inventory of the property, the Ministry of Finance has set up a new system that will determine the income of the taxpayer and will detect points of tax evasion. For example, freelancers declaring low income, but realising high costs or having large deposits in banks will be easily found. This system will be based on the submission of electronic declarations of the origin of the property and control over the origin of amounts that taxpayers have for the acquirement of property for consumer spending.

According to the same plan, analytical data of all expenditures of taxpayers for contributions, mobile and fixed telephony, bills for electricity, natural gas, home services, water, taxes, life insurance, legal and medical services, credits of any kind, credit cards and more must be submitted electronically.

If the incomes of taxpayers do not match expenses or deposits, the total tax will be calculated based on the amount of the cost of deposits, but additional taxes and penalties will be imposed.

It is also noted that senior officials of the Ministry of Finance have suggested that the proof of living expenses should be maintained and cover only 800,000 freelancers. On the basis of declarations of housing, boats, pools, and domestic staff, tax authorities will define a "conditional income." It will be compared to earnings which taxpayers declare, and whichever of the two revenues is greater, it will be taxed.