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2011
a) Capital expenditure commitments amounting to approximately €1.9m (2010: €20.4m)
b) Operating service commitments, which are estimated to be approximately to €109.3m (2010: €89.3m) mainly related
to security, maintenance, fire protection, transportation and cleaning services, to be settled as follows:
Analysis of operating service commitments 2011 2010
Within 1 year 34,573,892 41,116,412
Between 1 and 5 years 67,111,515 40,230,281
More than 5 years
7,631,420 7,930,434
Total operating service commitments 109,316,827 89,277,127
c) Operating lease commitments are analysed as follows: 2011 2010
Analysis of operating lease commitments 195,868 210,376
394,998 389,524
Within 1 year
Between 1 and 5 years 590,866 599,900
Total operating lease commitments
5.28 Contingent liabilities
The Company has contingent liabilities comprising the following:
a) The Company has not been audited yet by the Tax Authority for the fiscal year 2010. Consequently, the tax liability with respect
to the fiscal year 2010 has not been finalized yet. However, management does not expect any additional income taxes to be
paid in view of the existence of significant assessable tax losses available for carried forward (Refer to note 5.22). In accordance
with the implementation of the Law 2238/1994 and Pol.1159/2011, fiscal years from 2011 onwards will be audited by individual
Certified Auditors and an “Annual Tax Certificate” will be issued upon the completion of the tax audit. The Company has
assigned a certified auditor to audit its tax obligations for the fiscal year 2011 and the Certificate will be issued to the Company
in ten dates after the date of filing of the corporate income tax return to the competent Tax Authority. However management
doesn’t expect any additional taxes to be paid since the Company carries a significant amount of assessable tax losses.
b) During 2005 a tax audit was performed by the Tax Authority for the fiscal years 1998-2003. Income tax and all other
indirect taxes, except VAT, were levied and settled in 2006. With respect to VAT, the Tax Authority questioned the right of
the Company to set off the total VAT of all goods purchased and services rendered, as provided by article 26 paragraph 7
of law 2093/1992, in combination with articles 25.1.1 & 25.1.2 (g) of law 2338/1995 (the Airport Development Agreement).
The Tax Authority disputed the above right of the Company, and proceeded to impose VAT –including penalties- for the
years 1998-2003 of €1.3m, which corresponds to VAT of non-exempt expenses, such as, entertainment and hospitality
expenses. The Company appealed to the Athens Administrative Court of First Instance on 7 February 2006, against the
decision of the Tax Authority to impose VAT on such expenses. The hearing of the case has not been scheduled so far.
c) In addition, the Tax Authority issued a provisional VAT audit report, for the years 2001-2003, expressing reservation with
respect to the right of the Company to set off VAT, which corresponds to activities not subjected to VAT i.e. property leases,
without imposing any tax. On this reservation, the Tax Authority requested the opinion of the Ministry of Finance, which
finally responded in 2010 considering that the Company has no right to set off the VAT corresponding to activities not
subjected to VAT in accordance with the general provision of the VAT Law (2859/2000) and the 6th EU Directive. Following
the response of the Ministry of Finance the Tax Authority proceeded with the finalisation of the interim audit report imposing
VAT –including penalties- for the years 2001-2003 of €150.3m, which corresponds to VAT on the acquisition of fixed assets
and operating expenses related to VAT exempt activities. The Company appealed to the Athens Administrative Court of
First Instance on 28 September 2010, against the decision of the Tax Authority to impose VAT on such capital and operating
expenses and also referred the issue to the London Court of International Arbitration, together with the issue described in b)
above, in accordance with the article 44 of the ADA. The hearing of the case in front of the Athens Administrative Court of
First Instance has not been scheduled so far while the arbitration process has initiated, in accordance with the time schedule
Financial Statements as at 31 December 2011 (Amounts in Euros unless otherwise stated) Page 46 of 50
a) Capital expenditure commitments amounting to approximately €1.9m (2010: €20.4m)
b) Operating service commitments, which are estimated to be approximately to €109.3m (2010: €89.3m) mainly related
to security, maintenance, fire protection, transportation and cleaning services, to be settled as follows:
Analysis of operating service commitments 2011 2010
Within 1 year 34,573,892 41,116,412
Between 1 and 5 years 67,111,515 40,230,281
More than 5 years
7,631,420 7,930,434
Total operating service commitments 109,316,827 89,277,127
c) Operating lease commitments are analysed as follows: 2011 2010
Analysis of operating lease commitments 195,868 210,376
394,998 389,524
Within 1 year
Between 1 and 5 years 590,866 599,900
Total operating lease commitments
5.28 Contingent liabilities
The Company has contingent liabilities comprising the following:
a) The Company has not been audited yet by the Tax Authority for the fiscal year 2010. Consequently, the tax liability with respect
to the fiscal year 2010 has not been finalized yet. However, management does not expect any additional income taxes to be
paid in view of the existence of significant assessable tax losses available for carried forward (Refer to note 5.22). In accordance
with the implementation of the Law 2238/1994 and Pol.1159/2011, fiscal years from 2011 onwards will be audited by individual
Certified Auditors and an “Annual Tax Certificate” will be issued upon the completion of the tax audit. The Company has
assigned a certified auditor to audit its tax obligations for the fiscal year 2011 and the Certificate will be issued to the Company
in ten dates after the date of filing of the corporate income tax return to the competent Tax Authority. However management
doesn’t expect any additional taxes to be paid since the Company carries a significant amount of assessable tax losses.
b) During 2005 a tax audit was performed by the Tax Authority for the fiscal years 1998-2003. Income tax and all other
indirect taxes, except VAT, were levied and settled in 2006. With respect to VAT, the Tax Authority questioned the right of
the Company to set off the total VAT of all goods purchased and services rendered, as provided by article 26 paragraph 7
of law 2093/1992, in combination with articles 25.1.1 & 25.1.2 (g) of law 2338/1995 (the Airport Development Agreement).
The Tax Authority disputed the above right of the Company, and proceeded to impose VAT –including penalties- for the
years 1998-2003 of €1.3m, which corresponds to VAT of non-exempt expenses, such as, entertainment and hospitality
expenses. The Company appealed to the Athens Administrative Court of First Instance on 7 February 2006, against the
decision of the Tax Authority to impose VAT on such expenses. The hearing of the case has not been scheduled so far.
c) In addition, the Tax Authority issued a provisional VAT audit report, for the years 2001-2003, expressing reservation with
respect to the right of the Company to set off VAT, which corresponds to activities not subjected to VAT i.e. property leases,
without imposing any tax. On this reservation, the Tax Authority requested the opinion of the Ministry of Finance, which
finally responded in 2010 considering that the Company has no right to set off the VAT corresponding to activities not
subjected to VAT in accordance with the general provision of the VAT Law (2859/2000) and the 6th EU Directive. Following
the response of the Ministry of Finance the Tax Authority proceeded with the finalisation of the interim audit report imposing
VAT –including penalties- for the years 2001-2003 of €150.3m, which corresponds to VAT on the acquisition of fixed assets
and operating expenses related to VAT exempt activities. The Company appealed to the Athens Administrative Court of
First Instance on 28 September 2010, against the decision of the Tax Authority to impose VAT on such capital and operating
expenses and also referred the issue to the London Court of International Arbitration, together with the issue described in b)
above, in accordance with the article 44 of the ADA. The hearing of the case in front of the Athens Administrative Court of
First Instance has not been scheduled so far while the arbitration process has initiated, in accordance with the time schedule
Financial Statements as at 31 December 2011 (Amounts in Euros unless otherwise stated) Page 46 of 50
