Page 95 - Annual Report 2015 EN
P. 95
Annual Report 2015
rejected the appeals of the Company. The decisions were notified to the Tax Authorities, which
imposed the remaining unpaid VAT amount of €6.3m and additional penalties of €0.4m. The
Company filed respective annulment petitions before the Conseil d’Etat for the cassation of the
decisions of the Administrative Court of Appeals. The Conseil d’Etat by its Decisions 582/2015,
583/2015, 584/2015, 585/2015, 586/2015 and 587/2015, which were notified to the Company
on 11 March 2015, accepted the annulment petitions of the Company on the VAT disputes for
the fiscal years 2004-2009 and referred back the cases to the Administrative Court of Appeals.
The hearing before the Administrative Court of Appeals took place on 7 October 2015, which
by its decisions 5877/2015, 5878/2015, 5879/2015, 5880/2015, 5881/2015 and 5882/2015
accepted our petitions and the VAT assessments for the fiscal years 2004-2009 were annulled.
No provision has been recognised based on the final award of the London Court of International
Arbitration No 101735, which was issued at the favour of the Company on 27 February 2013.
d) Following a temporary tax audit performed in 2013 concerning the fiscal years 2010 and 2011,
the Tax Authority issued in 2013 a temporary VAT assessment for these years, amounting to
€3.0m -including penalties-, which corresponds mainly to VAT on the acquisition of fixed assets
and operating expenses related to VAT exempt activities. The Company duly appealed before the
competent Dispute Resolution Department of the Ministry of Finance aiming to resolve the issue
at the administrative level, which however rejected our appeal. The Company appealed before
the Administrative Courts of Appeals on 8 May 2014, against the decision of the Tax Authority
to impose VAT on such capital and operating expenses. The hearing, set for 3 November 2014,
was finally postponed for 10 October 2016. Based on Company’s experts’ opinion by reference to
the final award of the London Court of International Arbitration No 101735, which was issued in
favour of the Company on 27 February 2013, no provision has been recognised.
e) Following a temporary tax audit performed in 2014 concerning the fiscal year 2012, the Tax
Authority issued in 2013 a temporary VAT assessment for this fiscal year, amounting to €0.9m
-including penalties-, which corresponds mainly to VAT on the acquisition of fixed assets and
operating expenses related to VAT exempt activities. The Company duly appealed before the
competent Dispute Resolution Department of the Ministry of Finance aiming to resolve the issue
at the administrative level, which however rejected our appeal. The Company appealed before the
Administrative Courts of Appeals on 4 September 2014, against the decision of the Tax Authority
to impose VAT on such capital and operating expenses. The hearing, set for 10 November 2014,
was finally postponed for 11 April 2016. Based on Company’s experts’ opinion by reference to the
final award of the London Court of International Arbitration No 101735, which was issued at the
favour of the Company on 27 February 2013, no provision has been recognised.
Property tax
a) Further to the completion of the temporary tax audit on real property for the fiscal years 2010,
2011 and 2012, the Tax Authority issued in 2013 a real property tax assessment for these fiscal
years, amounting to €12.9m -including penalties-. With respect to property tax, the Tax Authority
questioned the right of the Company to be exempted of any property tax until 31 December
2015 as provided by paragraph 5 of the article 26 of the Law 2093/1992, in conjunction
with articles 25.1.1 & 25.1.2 of the ADA. The Company duly appealed before the competent
Dispute Resolution Department of the Ministry of Finance aiming to resolve the issue at the
administrative level, which however rejected our appeal. The Company appealed before the
Administrative Court of Appeals on 30 May 2014, against the decision of the Tax Authority to
impose property tax and also referred the issue to the London Court of International Arbitration,
in accordance with article 44 of the ADA. The hearing of the case before the Administrative Court
of Appeals, set for 10 November 2014, was finally postponed for 11 April 2016. No provision has
been recognised based on the final award of the London Court of International Arbitration No
142821, which was issued at the favour of the Company on 21 January 2016.
b) Further to the completion of the final tax audit on real property for the fiscal year 2013, the Tax
Authority issued in 2014 a real property tax assessment for this fiscal year, amounting to €3.2m
-including penalties-. With respect to property tax, the Tax Authority questioned the right of the
Company to be exempted of any property tax until 31 December 2015 as provided by paragraph
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
52 of 56
rejected the appeals of the Company. The decisions were notified to the Tax Authorities, which
imposed the remaining unpaid VAT amount of €6.3m and additional penalties of €0.4m. The
Company filed respective annulment petitions before the Conseil d’Etat for the cassation of the
decisions of the Administrative Court of Appeals. The Conseil d’Etat by its Decisions 582/2015,
583/2015, 584/2015, 585/2015, 586/2015 and 587/2015, which were notified to the Company
on 11 March 2015, accepted the annulment petitions of the Company on the VAT disputes for
the fiscal years 2004-2009 and referred back the cases to the Administrative Court of Appeals.
The hearing before the Administrative Court of Appeals took place on 7 October 2015, which
by its decisions 5877/2015, 5878/2015, 5879/2015, 5880/2015, 5881/2015 and 5882/2015
accepted our petitions and the VAT assessments for the fiscal years 2004-2009 were annulled.
No provision has been recognised based on the final award of the London Court of International
Arbitration No 101735, which was issued at the favour of the Company on 27 February 2013.
d) Following a temporary tax audit performed in 2013 concerning the fiscal years 2010 and 2011,
the Tax Authority issued in 2013 a temporary VAT assessment for these years, amounting to
€3.0m -including penalties-, which corresponds mainly to VAT on the acquisition of fixed assets
and operating expenses related to VAT exempt activities. The Company duly appealed before the
competent Dispute Resolution Department of the Ministry of Finance aiming to resolve the issue
at the administrative level, which however rejected our appeal. The Company appealed before
the Administrative Courts of Appeals on 8 May 2014, against the decision of the Tax Authority
to impose VAT on such capital and operating expenses. The hearing, set for 3 November 2014,
was finally postponed for 10 October 2016. Based on Company’s experts’ opinion by reference to
the final award of the London Court of International Arbitration No 101735, which was issued in
favour of the Company on 27 February 2013, no provision has been recognised.
e) Following a temporary tax audit performed in 2014 concerning the fiscal year 2012, the Tax
Authority issued in 2013 a temporary VAT assessment for this fiscal year, amounting to €0.9m
-including penalties-, which corresponds mainly to VAT on the acquisition of fixed assets and
operating expenses related to VAT exempt activities. The Company duly appealed before the
competent Dispute Resolution Department of the Ministry of Finance aiming to resolve the issue
at the administrative level, which however rejected our appeal. The Company appealed before the
Administrative Courts of Appeals on 4 September 2014, against the decision of the Tax Authority
to impose VAT on such capital and operating expenses. The hearing, set for 10 November 2014,
was finally postponed for 11 April 2016. Based on Company’s experts’ opinion by reference to the
final award of the London Court of International Arbitration No 101735, which was issued at the
favour of the Company on 27 February 2013, no provision has been recognised.
Property tax
a) Further to the completion of the temporary tax audit on real property for the fiscal years 2010,
2011 and 2012, the Tax Authority issued in 2013 a real property tax assessment for these fiscal
years, amounting to €12.9m -including penalties-. With respect to property tax, the Tax Authority
questioned the right of the Company to be exempted of any property tax until 31 December
2015 as provided by paragraph 5 of the article 26 of the Law 2093/1992, in conjunction
with articles 25.1.1 & 25.1.2 of the ADA. The Company duly appealed before the competent
Dispute Resolution Department of the Ministry of Finance aiming to resolve the issue at the
administrative level, which however rejected our appeal. The Company appealed before the
Administrative Court of Appeals on 30 May 2014, against the decision of the Tax Authority to
impose property tax and also referred the issue to the London Court of International Arbitration,
in accordance with article 44 of the ADA. The hearing of the case before the Administrative Court
of Appeals, set for 10 November 2014, was finally postponed for 11 April 2016. No provision has
been recognised based on the final award of the London Court of International Arbitration No
142821, which was issued at the favour of the Company on 21 January 2016.
b) Further to the completion of the final tax audit on real property for the fiscal year 2013, the Tax
Authority issued in 2014 a real property tax assessment for this fiscal year, amounting to €3.2m
-including penalties-. With respect to property tax, the Tax Authority questioned the right of the
Company to be exempted of any property tax until 31 December 2015 as provided by paragraph
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
52 of 56
