Tax Flash: Incentives for tax penalty write off
Pursuant to a Legislative Decree, which was published on an extreme urgency basis with the Government Gazette on 27-03-2015, a partial "tax amnesty" for past tax obligations that have not been fulfilled until March 1, 2015 has been put in place. The "tax amnesty" scheme will be available until 26.5.2015.
According to this scheme, the taxpayer has the option of paying all tax debts towards the Greek State that have become overdue up until March 1, 2015 either in a lump sum or in up to 100 monthly instalments.
Depending on the number of instalments opted for by the taxpayer, a total or partial exemption from additional taxes or duties of Law 2523/1997, penalties for late filing/ non-filing or filing of inaccurate tax return of Law 4174/2013, as well as penalties and interest for delayed payment of such taxes applies. The exemption applies to the aforementioned amounts which are assessed along with the main tax (difference) and does not extend to the main tax (difference) assessed.
The above scheme appears to also apply, upon request of the taxpayer, to debts that will be assessed by the tax authorities up until 26.5.2015, in case the taxpayer withdraws from any legal remedy which is pending before a court or an administrative authority, irrespective of the time such debts become overdue. With reference to legal remedies which are pending before the courts, the case must not have already been heard before the court.
We would also expect the issuance of relevant Decision(s) or Circular(s) from the Greek Ministry of Finance, clarifying the details of this scheme. This scheme is expected to be activated (through the uploading of the relevant online application) after the Greek Easter (i.e. after April 13, 2015).
Taxpayers may therefore wish to reconsider past obligations and filing positions and assess whether the may make use of this opportunity which is combined with the recent abolition of late payment penalties (see our earlier Tax Flash on Law 4321/2015).