By the law 4174 / 2013, new penalties are imposed, in some cases, smaller than those, which are currently in force (see below).

The new provisions provide exemption from surcharges (interest) and fines due to force majeure (force majeure are considered to be events that are unpredictable and cannot be prevented, as much diligence as the taxpayer may show, natural person or legal entity),after a request of the taxpayer has been submitted to the Head of the competent tax office. The prerequisite for the qualification of this favorable arrangement is that the taxpayer has paid the imposed taxes. It is at the discretion of the Tax Administration to recognize the force majeure.

No exemption is provided for penalties regarding misrepresentation and fraud offenses.

The questioning of fines has to be made with the appeal to a higher administrative authority.

In particular, the fines become imposed by tax category as follows: 

• VAT ( article 58 Α ) 
  • Breach of submitting an inaccurate VAT return

A fine equal to the 50% of the difference between the declared VAT and the one calculated by the tax authority will be imposed.

Note: For the failure to submit a VAT return, the following fines are imposed separately for breach of not submitting a return. 

• For the breach of failure to issue a tax document

A fine equal to 50% of the tax, which is attributable to the unissued tax document, will be imposed.

• For the breach of issuing an inaccurate tax document

A fine equal to the 50% of the difference of the corresponding VAT between the recorded value and the actual one will be imposed.

Note: The above mentioned fines, which will apply from now on, are the only ones from local partial tax audits, in case the failure of issuing or issuing of inaccurate tax documents is found.

• Breach related to the company's operation

In cases where a company operates without having submitted the registration of commencement of business declaration, a fine will be imposed equal to the 50% of the VAT which has not been attributed during the period of the non-legitimate operation, if income concealing is found.  

Note:

The above mentioned fine shall be imposed also to entrepreneurs who are exempted from VAT when they start a new activity which is subject to VAT, without declaring it into the registry of the relevant Tax office, unless the taxable transactions are recorded in the submitted VAT returns.

• Breach of not issuing a tax document

In case a person who is not liable to the submission of a VAT return issues a tax document, burdening its value with the relevant VAT, a fine will be imposed equal to 50% of the VAT which is mentioned on the tax document which shouldn’t have been issued.

If the unlawfully levied VAT has been attributed to the State, no fine will be imposed.

Note: To infringements of the VAT Law, the fines of Article 58 are not imposed also, since there is an imposition of the fines of Article 58 A.

• Withholding taxes (article 59)

The fines for the above mentioned breaches are diminishing and are imposed only after relevant tax audit.  

• Breach of delayed withholding tax return

Imposed are the fines which apply for procedural violations that means € 100,00, € 250,00 and € 500,00.

• Breach of delayed payment of withholding tax

A fine is imposed equal to the interest which occurs with a rate of 0,73% per month of delay of the withholding tax payment.

• Breach of non submitting of the withholding tax return for payment

In cases of non submission of the withholding tax return for payment, when obliged to submit / pay the withholding tax, a fine will be imposed equal to the 50% of the tax which should have been paid to the state.

• Breach of inaccurate withholding tax return

In the cases of inaccurate withholding tax return for payment, there is fine imposed equal to 50% on the difference of the tax which should have been paid to the State.

• Infringements of a person preventing, favoring and assisting with tax fraud (article 60).

In these cases, this person is imposed with a fine equal to the one which was imposed to the tax payer committing tax fraud.

NOTE: This article does not cover advisory, but only informational purposes, and cannot serve, as a basis for further actions, on the part of   the reader. Reception of specialized advice is required.

Our company does not hold any responsibility for any actions, taken by the readers, based on the present article.