Greek Tax Assessment Power Expires: Implications for Audits and VAT Deductions

Greek Tax Assessment Power Expires: Implications for Audits and VAT Deductions

kathimerini.gr

Greek Tax Assessment Power Expires: Implications for Audits and VAT Deductions

Greece's tax authority lost the right to assess taxes for years up to 2018 at the end of 2024; this affects tax audits and reassessments, as shown in cases involving controlled foreign companies and VAT deductions, with the EU Court of Justice emphasizing the irrelevance of service necessity for VAT deductions.

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Greek
Greece
EconomyJusticeGreeceTax ComplianceVatTax LawCourt CasesStatute Of LimitationsControlled Foreign CompaniesEu Tax Law
Grant ThorntonΔεδ (Greek Supreme Administrative Court)Στε (Greek Council Of State)
What are the immediate implications of the 2024 expiration of the Greek tax authority's power to assess taxes for years up to 2018?
The Greek tax authority's right to assess taxes for years up to 2018 expired at the end of 2024. Generally, most taxes have a five-year statute of limitations, extendable in cases like new evidence or tax evasion, potentially reaching ten or fifteen years. The limitation period begins after the tax return filing year, with exceptions for VAT and property taxes.
How did the Greek courts handle the case of a Bulgarian company deemed a controlled foreign company owned by a Greek resident, and what were the key factors in this decision?
This expiration increases the likelihood of tax audits for potential reassessments or penalties. A Bulgarian company wholly owned by a Greek resident was deemed a controlled foreign company due to transactions with the resident's Greek business, lacking substantial economic activity in Bulgaria and exhibiting tax avoidance.
What broader implications might arise from the EU Court of Justice's ruling on the irrelevance of service necessity to VAT deduction rights, particularly for multinational corporations?
The Greek Supreme Court upheld a lower court's decision to consider a tax study when overturning tax assessments. This highlights the evolving landscape of tax law interpretations and the growing importance of expert tax analysis in challenging tax authority decisions. The EU Court of Justice ruled that the necessity of services is irrelevant to VAT deduction rights, impacting cross-border business.

Cognitive Concepts

1/5

Framing Bias

The framing is largely neutral, presenting factual accounts of legal cases. However, the selection of cases presented might subtly influence the reader's perception of the efficiency or fairness of the Greek tax system. More context is needed for a complete assessment.

2/5

Bias by Omission

The provided text focuses on specific legal cases and rulings regarding tax laws in Greece and doesn't offer broader context on tax policies or potential biases within the Greek tax system. It omits discussion of the overall fairness or impact of these laws on different socioeconomic groups.

2/5

False Dichotomy

The analysis presents legal cases as either correct or incorrect rulings, without exploring the complexities or nuances of tax law interpretation. There's no discussion of alternative legal arguments or perspectives.

Sustainable Development Goals

Reduced Inequality Positive
Direct Relevance

The article highlights court cases that address tax evasion and ensure fair tax practices. By holding individuals and companies accountable for tax obligations, these rulings contribute to a more equitable distribution of resources and reduced economic inequality. The cases demonstrate the importance of robust tax systems in promoting fairness and preventing the concentration of wealth among a select few.