Since stepping into his role as Governor of Greece’s Independent Authority for Public Revenue, George Pitsilis has overseen an ambitious and radical transformation of the country’s tax and customs administration, aiming to not only overhaul processes and operations but also fundamentally change the public’s attitude toward tax compliance and the very way taxpayers interact with the IAPR.
In this interview to Business Partners magazine, Pitsilis talks about his vision for the IAPR and discusses the impact of digitalization, the transformational potential of AI, and why people are, ultimately, an organization’s most valuable asset.
Over the past years, the Independent Authority for Public Revenue (IAPR) has made remarkable progress toward a fundamental digital transformation and modernization of its systems and processes. What is your vision for a fully transformed IAPR?
A fully transformed, next-generation IAPR, as we envision it, is not a distant dream but the full maturation of our digital transformation. On the tax administration side, we are essentially talking about the implementation of the OECD’s Tax Administration 3.0 model, where “tax just happens.”
At the core of this next phase is the utilization of the enormous volume of information we manage. This is where artificial intelligence and advanced analytical tools come in to help us detect complex forms of fraud in real time. This allows us to allocate our auditing resources in an extremely targeted way, based on algorithmic risk analysis.
When the business community adopts and promotes high ethical and compliance standards, it sets the right example for the whole of society
At the same time, the automation of even more complex procedures, such as mass data cross-referencing, is critical. In this way, we save valuable time, both for our employees and, crucially, for taxpayers, whether individuals or businesses. The digital recording of transactions and real-time information updates is, of course, an axis that is continuously strengthened.
An equally important goal is the completion of our organizational transformation. We want to move to a “one service, one system, one responsibility” model, meaning a tax authority that does not restrict and is not restricted by geographical limitations.
Finally, our next major challenge is the transition to a next-generation customs administration, based on organizational and digital transformation.
Ιn the ongoing war on tax evasion, challenges are ever present, and tax evaders are constantly developing new tools and methods to bypass control mechanisms. A particularly significant challenge in today’s economic environment is the emergence and rapid growth of new forms of wealth creation, such as cryptocurrencies, NFTs, and other digital assets. The nature of these assets and transactions necessitates the enhancement of our auditing capabilities. The IAPR is already prepared to address these new phenomena, with a continuous commitment to the development and upgrading of digital and analytical control tools, ensuring that our mechanisms remain strong and effective against every new form of tax evasion.
Beyond digital capabilities, trust and a culture of voluntary compliance are also essential to ensuring a fair and efficient tax system. What is the IAPR doing to enhance transparency and boost taxpayer confidence?
Technology is not an end in itself but a catalyst for rebuilding our relationship with society upon a foundation of trust. We are utilizing technology to create a tax administration that is not just smarter but also fairer, more efficient, and more human. In this context, our efforts to enhance voluntary compliance focus on two central axes: on simplification and digitalization of procedures and on justice and protection.
Technology is not an end in itself but a catalyst for rebuilding our relationship with society upon a foundation of trust
When procedures are simple, digital, and do not require the taxpayer’s physical presence, taxpayers’ relationships with the administration automatically become more positive and transparent. That is why we invest in systems that allow taxpayers to easily find out what they must pay and why, without bureaucracy. Immediacy and simplicity are the most powerful tools for reinforcing trust.
Simultaneously, we promote transparency in the design and implementation of our systems. For example, in our AI systems, we incorporate control over the algorithmic decision and the explanation of results, reducing the black box phenomenon and significantly enhancing the sense of justice.
What steps is the IAPR taking to cultivate a stronger sense of tax responsibility, particularly among the younger generations and small businesses?
Developing a new tax culture is a longterm commitment that requires systematic effort. Fundamentally, it’s a change in mindset. We seek to achieve this by continuously informing and familiarizing the public, so that individuals as well as businesses fully understand the procedures, reforms, and benefits of tax compliance.
Naturally, each audience requires a different approach. For the younger generations, who are digital natives, the approach is through technology. We are creating digital tools that make their lives easy, such as pre-filled forms and digital services. The easier compliance is, the more self-evident it becomes.
For small businesses, the key is simplification. Tools such as myDATA, which automates their accounting monitoring, and myAADEapp, which allows for the immediate issuance of documents from a mobile phone, reduce the administrative burden. This promotes a mindset of shared contribution, as they feel that the system is working with them rather than against them.
Cooperation with organizations such as AmCham Greece ensures that our reforms are sustainable and based on a shared understanding of the economy’s needs
At the same time, we are stepping up our public outreach efforts through social media, actions in schools, chambers of commerce, and professional associations across Greece. We want the public to get to know us, and we want to have the opportunity to engage in dialogue with them, to listen to their needs and concerns, and of course, to receive the relevant feedback. This isn’t just about getting our message across but also about letting people know that we are here to support them.
Big data and AI are changing how state agencies, including the IAPR, operate. How does this apply to tax and customs services?
Our AI expertise is something we are building day by day. Currently, we are integrating AI into three core functions: fraud and smuggling detection, data management and analysis (business intelligence and data analytics), and customer service and support.
We have established an operations room, which enables the real-time coordination of field audits, leveraging information to counter complex smuggling activities. We have also developed an input-output management information system that combines data from fuel station systems with our own to detect fuel non-compliance and fraud schemes. Meanwhile, we use machine-learning models, profiling techniques, and behavioral pattern recognition to predict tax violations.
Regarding data utilization, we apply big data mining and analysis methods to extract actionable insights that inform our strategic decisions. It’s worth noting that the new Taxis system will integrate AI and data mining tools across all IAPR information systems.
Finally, in the area of customer service, we are developing chatbots utilizing large language models (LLMs), which will be able to answer questions and provide personalized guidance to citizens.
In what ways is the IAPR working to ensure that, despite increasing automation, innovation within the organization remains human-centered?
The adoption of AI is not just a technological evolution; it is primarily a change in mindset. It liberates our employees from time-consuming and repetitive tasks, allowing them to focus on issues that require human judgment and strategic thinking. Our people are our most valuable asset, and that’s why we invest in their education and the acquisition and development of new and important skills, such as critical thinking and problemsolving.
Furthermore, human supervision and human intervention at critical stages ensure that innovation maintains fairness and accessibility for everyone, preventing AI models from being swayed by potentially biased data. Within this framework, we are also launching new initiatives, such as the IAPR’s upcoming AI Lab, which will form the core for the development of our new tools.
Organizations such as AmCham Greece play an important role in facilitating dialogue between the public and private sectors. How do you believe business associations like AmCham Greece can contribute to shaping a fair tax mentality and a constructive public debate on fiscal responsibility and reform?
Business associations such as the American-Hellenic Chamber of Commerce play a vital and multifaceted role, serving as a bridge between the public and private sectors. They provide us with valuable feedback on the impact of reforms on the real economy, allowing us to adjust our policies to be effective and business-friendly.
Through their various initiatives, they can actively contribute to cultivating a fair tax mentality and promoting voluntary compliance in the market. When the business community adopts and promotes high ethical and compliance standards, it sets the right example for the whole of society.
Furthermore, their contribution to shaping a constructive public debate on fiscal responsibility and reform is invaluable. Cooperation with organizations such as AmCham Greece ensures that our reforms are sustainable and based on a shared understanding of the economy’s needs. After all, we actively participate in international reflection groups, such as the EU High-Level Reflection Group, and the international recognition of our work confirms that we are on the right track.
