Pitsilis: How Greece reduced tax evasion

Greece’s model for transforming the IAPR was presented at an IMF international workshop. Digitalisation and the integration of POS terminals have led to a dramatic fall in the VAT gap.

Pitsilis: How Greece reduced tax evasion

This article is an AI translation of an original piece published in Greek. Read original

George Pitsilis, Governor of the IAPR, outlined Greece’s experience in transforming its tax administration and highlighted the pivotal role of institutional independence, digitalisation and taxpayer trust. He joined online the international workshop “Reforms for a Modern and Growth-Friendly Tax System in Pakistan”, held in Islamabad on 20 and 21 October 2026 and organised by the Pakistani government and the International Monetary Fund (IMF).

The IAPR Governor took part in a panel discussion entitled “Aligning Tax Administration with International Best Practices: Digitalisation, Compliance and Taxpayer Trust”, moderated by Rashid Mahmood Langrial, head of Pakistan’s tax authority, the Federal Board of Revenue (FBR).

In his remarks, Mr Pitsilis outlined the key stages in the reform of Greece’s tax administration, stressing that successful digital transformation depends on strong institutions, a consistent strategy, investment in human resources and the use of technology for the benefit of citizens and businesses.

Institutional independence and myDATA

He gave particular emphasis to the establishment of the IAPR in 2017, describing it as a decisive step towards creating a modern model of administration based on operational independence, professional management and accountability.

Outlining specific digital reforms, he referred to:

· The myDATA platform, which enhances transaction transparency and enables data to be used to simplify tax procedures.

POS integration and audits

· The integration of cash registers with POS terminals to monitor transactions more effectively.

· The introduction of the digital delivery note, which improves the traceability of goods in transit.

· The automation of VAT refunds and the use of risk-analysis systems, with the aim of serving compliant taxpayers more quickly and conducting more targeted audits.

VAT gap narrows

Mr Pitsilis stressed that digitalisation is not an end in itself, but a means of reducing bureaucracy, lowering administrative costs and creating conditions for fair competition.

Turning to the results of Greece’s efforts, he noted that, according to estimates by the European Commission, Greece’s VAT compliance gap fell from 24% in 2019 to 11.4% in 2023, reflecting broader progress in tackling tax evasion.

“Our aim is not simply to collect more data, but to use it intelligently to make compliance easier, improve the effectiveness of audits and build a relationship of trust with taxpayers,” he said.

Measurable results and trust

Addressing participants, the Governor highlighted the importance of measurable results in the day-to-day service provided to citizens and businesses. He said the progress of a tax administration should be reflected not only in revenue collection, but also in the speed of tax refunds, the effectiveness of audits, the resolution of disputes and taxpayer satisfaction.

Concluding his remarks, George Pitsilis stressed:

“The true measure of a modern tax administration’s success is not the number of digital applications it offers, but the change it brings to the relationship between the state and the taxpayer: less bureaucracy, greater fairness and stronger trust.”

The workshop was attended by senior officials from the IMF, the Pakistani government and tax administration, representatives of international organisations and experts in tax policy and administration. It focused on sharing experience and best practices to build a more effective, growth-friendly tax system.

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