The Independent Authority for Public Revenue (AADE) in Greece is launching a new era of tax fraud detection through advanced algorithms aimed at dismantling networks of shell companies that have amassed significant debts without accountability. Specifically, the agency is expanding its sophisticated detection model to identify patterns of business relationships and movements that have eluded traditional oversight methods. This step is crucial, as these companies have been known for their ability to disappear after accruing substantial liabilities, previously amounting to €43 million, leaving many stakeholders in the market bewildered.

At the core of this new detection system is the Jaccard similarity index, a mathematical algorithm that assesses the similarities between different sets of data. This innovative approach enables tax authorities to uncover actions and trends that would be invisible to conventional oversight, thereby directing investigations towards previously ignored areas of tax compliance. Such technological advancements hold the promise of significantly enhancing oversight and enforcing tax laws in Greece.

This initiative represents a significant stride towards addressing a long-standing issue of tax evasion through ghost companies, which has plagued the Greek economy for decades. By establishing a digital barrier against such fraudulent activities, the AADE is not only demonstrating its commitment to improving fiscal integrity but also paving the way for a more equitable tax system, ensuring that those engaged in unscrupulous practices are held accountable and preventing future losses to the public treasury.