Non-cooperative states

January 2011

According to the Announcement made by the Ministry of Finance, dated 19.01.2011, the Ministerial Decision that determined the non-cooperative states is applicable from 01.01.2011 and not from 01.01.2010, as was originally provided.

By means of the same Announcement the Ministry of Finance disclosed its intention to amend the relevant provision of article 51B of Greek Law 2238/1994, as added by article 78 of Law 3842/2010, in order for the deduction of the expenses that are paid towards the non-cooperative states to be possible, in cases where an enterprise proves that the respective transactions are real and of ordinary nature and that they have not as a result the transfer of profits, income or capital to the non-cooperative state, with the purpose of therefore to tax avoidance or tax evasion (establishment of rebuttable presumption, i.e. the company bears the burden of proof).