Page 82 - 2board23full
P. 82
Financial Statements
agreed with the London Court of International Arbitration, and the hearing is scheduled to take place within the second half
of the current year 2012. No provision has been recognised, based on Company’s experts’ opinion by reference to the specific
legislation governing its tax affairs, since no significant liability is expected to materialise. (refer also to note 5.14)
d) Following the decision of the Ministry of Finance – as referred above under c) - the Tax Authority proceeded with
the audit of the years 2004-2009 imposing VAT –including penalties- for the years 2004-2009 of €11.8m, 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 21 October 2011, 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 issues described in b) and c) 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 agreed with the
London Court of International Arbitration, and the hearing is scheduled to take place within the second half of the
current year 2012. No provision has been recognised, based on Company’s experts’ opinion by reference to the specific
legislation governing its tax affairs, since no significant liability is expected to materialise. (refer also to note 5.14)
e) With the decision taken on 5 November 2009 the Mayor of Peania Municipality requested Company the payment
of a total of €37m for the compensative municipal charges and penalties for the provision for waste, landscaping,
cleanliness and lighting maintenance for the period 1 January 2004 to 31 December 2009. Management filed a petition
with the Administrative Court of Athens versus the Municipality of Peania, accompanied by corresponding petitions
for the deferment of payment, claiming that in accordance with the provisions of the ADA, AIA has been granted
with the exclusive right to provide such services to airport users. Said deferment of payment has been provisionally
granted by order of the competent judge of the Administrative Court of Athens until the issuance of a Court Decision
on the petitions. No provision has been recognised based on Company’s experts’ opinion by reference to the specific
legislation governing its municipal tax affairs, since the case is expected to be concluded at its favour.
f) In accordance with the Law 3808/2009 the Greek State imposed a “special once off tax surcharge” on the profits
generated by legal entities in year 2008. The Company was advised by the Tax Authorities that it is liable to pay a
special once off tax surcharge amounting to €23m which was higher by €9m than the amount that should be paid in
accordance with the provisions of the law and the tax privileges which have been granted by the ADA. Tax Authorities
refused to modify the assessment of the once off tax surcharge and management proceeded with the legal actions to
remedy the erroneous tax bill referring the issue to the Athens Administrative Court of First Instance on 18 February
2010. No provision has been recognised based on Company’s experts’ opinion by reference to the specific legislation
governing its tax affairs, since the case is expected to be successfully concluded at its favour. (refer also to note 5.14)
g) There are a number of pending legal lawsuits against the Company amounting to approximately €5.0m (2010: €3.1m)
for which management, following consultation with its Legal Counsel, believes that there is sufficient ground to
successfully defend these claims. No provision for these claims has been recognised in these financial statements on
the basis that no material liability is expected to arise.
Financial Statements as at 31 December 2011 (Amounts in Euros unless otherwise stated) Page 47 of 50
agreed with the London Court of International Arbitration, and the hearing is scheduled to take place within the second half
of the current year 2012. No provision has been recognised, based on Company’s experts’ opinion by reference to the specific
legislation governing its tax affairs, since no significant liability is expected to materialise. (refer also to note 5.14)
d) Following the decision of the Ministry of Finance – as referred above under c) - the Tax Authority proceeded with
the audit of the years 2004-2009 imposing VAT –including penalties- for the years 2004-2009 of €11.8m, 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 21 October 2011, 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 issues described in b) and c) 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 agreed with the
London Court of International Arbitration, and the hearing is scheduled to take place within the second half of the
current year 2012. No provision has been recognised, based on Company’s experts’ opinion by reference to the specific
legislation governing its tax affairs, since no significant liability is expected to materialise. (refer also to note 5.14)
e) With the decision taken on 5 November 2009 the Mayor of Peania Municipality requested Company the payment
of a total of €37m for the compensative municipal charges and penalties for the provision for waste, landscaping,
cleanliness and lighting maintenance for the period 1 January 2004 to 31 December 2009. Management filed a petition
with the Administrative Court of Athens versus the Municipality of Peania, accompanied by corresponding petitions
for the deferment of payment, claiming that in accordance with the provisions of the ADA, AIA has been granted
with the exclusive right to provide such services to airport users. Said deferment of payment has been provisionally
granted by order of the competent judge of the Administrative Court of Athens until the issuance of a Court Decision
on the petitions. No provision has been recognised based on Company’s experts’ opinion by reference to the specific
legislation governing its municipal tax affairs, since the case is expected to be concluded at its favour.
f) In accordance with the Law 3808/2009 the Greek State imposed a “special once off tax surcharge” on the profits
generated by legal entities in year 2008. The Company was advised by the Tax Authorities that it is liable to pay a
special once off tax surcharge amounting to €23m which was higher by €9m than the amount that should be paid in
accordance with the provisions of the law and the tax privileges which have been granted by the ADA. Tax Authorities
refused to modify the assessment of the once off tax surcharge and management proceeded with the legal actions to
remedy the erroneous tax bill referring the issue to the Athens Administrative Court of First Instance on 18 February
2010. No provision has been recognised based on Company’s experts’ opinion by reference to the specific legislation
governing its tax affairs, since the case is expected to be successfully concluded at its favour. (refer also to note 5.14)
g) There are a number of pending legal lawsuits against the Company amounting to approximately €5.0m (2010: €3.1m)
for which management, following consultation with its Legal Counsel, believes that there is sufficient ground to
successfully defend these claims. No provision for these claims has been recognised in these financial statements on
the basis that no material liability is expected to arise.
Financial Statements as at 31 December 2011 (Amounts in Euros unless otherwise stated) Page 47 of 50
