Page 102 - Annual_Report_2016
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Financial Statements aia.gr
the Tax Authority issued real property tax assessments for the fiscal years 2008-2013, amounting totally to
€44.6m, comprising of €28.2m capital and €16.4m surcharges.
The Company referred the issue, to the London Court of International Arbitration, in accordance with
Article 44 of the ADA. Based on the final award of the London Court of International Arbitration No
142821, which was issued on 21 January 2016, the Greek State was instructed to indemnify the Company
as per Articles 5.2(i) and 32.3. of the ADA against the consequences of the real property tax levied on the
Company by the Greek State for the period 2008-2013.
Alongside, the Company appealed before the competent Administrative Courts of Appeals against all the
acts of determination of the Tax Authority to impose real property tax, requesting the annulment of the tax
assessments for all years from 2008-2013.
Regarding the real property tax assessments, the juridical process before the Administrative Courts of
Appeal is as follows:
• For the fiscal years 2008-2009, which corresponds to real property tax imposed amounting to €12.7m,
the hearing took place at 19 September 2016 and by virtue of decisions nos. 1048/2017 and 1047/2017 the
Company’s appeals were fully upheld (refer to note 5.32).
• For the fiscal years 2010-2012, which corresponds to real property tax imposed amounting to €15.2m, the
hearing took place at 16 January 2017 and the decision is still pending.
• For the fiscal year 2013, which corresponds to real property tax imposed amounting to €16.7m, the
hearing took place at 10 October 2016 and by virtue of decisions nos. 804 & 807/2017 the Company’s
appeals were fully upheld (refer to note 5.32).
Based on the Company’s experts’ opinion by reference to the aforementioned final award of the London
Court of International Arbitration, as well as the decisions of the Administrative Court of Appeals, which
recognised that the arbitral award is binding for the Greek Administrative courts, no provision has been
recognised for all above acts of determination.
Municipal charges
The Municipality of Paiania charged the Company with municipal charges for the provision for waste,
landscaping, cleanliness and lighting maintenance for the years 2004-2016 amounting totally to €59.4m,
comprising of €40.7m capital and €18.7m surcharges.
Management filed a number of petitions with the Administrative Court of Athens versus the Municipality
of Paiania, accompanied by corresponding petitions for the deferment of payments, claiming that in
accordance with the provisions of the ADA, the Company has been granted with the exclusive right to
provide such services to airport users.
The juridical process is still in progress before the Administrative Courts of Appeals as follows::
• For the fiscal years 2004-2009, which corresponds to municipal charges of €37.4m, deferment of
payment has been granted. Furthermore, the Administrative Court of Appeals accepted in substance
the petitions of the Company related to the imposition of municipal charges and penalties rendering the
respective decisions of the Mayor of Paiania as null and void to that effect. However, the Municipality
of Paiania filed annulment petitions against the decisions in favour of the Company before the Conseil
d’Etat. The hearing took place at 22 March 2017 and the decision is still pending.
• For the fiscal years 2010-2013, which corresponds to municipal charges of €12.3m, deferment of payment
has been rejected. As per decisions of the Administrative Courts of Appeals, the petitions for the
fiscal years 2010-2012 were fully upheld, thus rendering the imposition of municipal charges unlawful.
However, the Municipality of Paiania filed annulment petitions against those decisions issued in favour
of the Company before the Conseil d’Etat. The hearing took place at 22 March 2017 and the decision is
still pending. The hearing of the petition for the fiscal year 2013 took place on 1 February 2017 and the
decision is still pending. Moreover, the Company filed a lawsuit versus the Municipality of Paiania with
the competent Administrative Court of Athens requesting the reimbursement of the municipal charges
imposed for the fiscal years 2010-2012 and already paid to the latter, amounting to €8.8m.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
55 of 57
the Tax Authority issued real property tax assessments for the fiscal years 2008-2013, amounting totally to
€44.6m, comprising of €28.2m capital and €16.4m surcharges.
The Company referred the issue, to the London Court of International Arbitration, in accordance with
Article 44 of the ADA. Based on the final award of the London Court of International Arbitration No
142821, which was issued on 21 January 2016, the Greek State was instructed to indemnify the Company
as per Articles 5.2(i) and 32.3. of the ADA against the consequences of the real property tax levied on the
Company by the Greek State for the period 2008-2013.
Alongside, the Company appealed before the competent Administrative Courts of Appeals against all the
acts of determination of the Tax Authority to impose real property tax, requesting the annulment of the tax
assessments for all years from 2008-2013.
Regarding the real property tax assessments, the juridical process before the Administrative Courts of
Appeal is as follows:
• For the fiscal years 2008-2009, which corresponds to real property tax imposed amounting to €12.7m,
the hearing took place at 19 September 2016 and by virtue of decisions nos. 1048/2017 and 1047/2017 the
Company’s appeals were fully upheld (refer to note 5.32).
• For the fiscal years 2010-2012, which corresponds to real property tax imposed amounting to €15.2m, the
hearing took place at 16 January 2017 and the decision is still pending.
• For the fiscal year 2013, which corresponds to real property tax imposed amounting to €16.7m, the
hearing took place at 10 October 2016 and by virtue of decisions nos. 804 & 807/2017 the Company’s
appeals were fully upheld (refer to note 5.32).
Based on the Company’s experts’ opinion by reference to the aforementioned final award of the London
Court of International Arbitration, as well as the decisions of the Administrative Court of Appeals, which
recognised that the arbitral award is binding for the Greek Administrative courts, no provision has been
recognised for all above acts of determination.
Municipal charges
The Municipality of Paiania charged the Company with municipal charges for the provision for waste,
landscaping, cleanliness and lighting maintenance for the years 2004-2016 amounting totally to €59.4m,
comprising of €40.7m capital and €18.7m surcharges.
Management filed a number of petitions with the Administrative Court of Athens versus the Municipality
of Paiania, accompanied by corresponding petitions for the deferment of payments, claiming that in
accordance with the provisions of the ADA, the Company has been granted with the exclusive right to
provide such services to airport users.
The juridical process is still in progress before the Administrative Courts of Appeals as follows::
• For the fiscal years 2004-2009, which corresponds to municipal charges of €37.4m, deferment of
payment has been granted. Furthermore, the Administrative Court of Appeals accepted in substance
the petitions of the Company related to the imposition of municipal charges and penalties rendering the
respective decisions of the Mayor of Paiania as null and void to that effect. However, the Municipality
of Paiania filed annulment petitions against the decisions in favour of the Company before the Conseil
d’Etat. The hearing took place at 22 March 2017 and the decision is still pending.
• For the fiscal years 2010-2013, which corresponds to municipal charges of €12.3m, deferment of payment
has been rejected. As per decisions of the Administrative Courts of Appeals, the petitions for the
fiscal years 2010-2012 were fully upheld, thus rendering the imposition of municipal charges unlawful.
However, the Municipality of Paiania filed annulment petitions against those decisions issued in favour
of the Company before the Conseil d’Etat. The hearing took place at 22 March 2017 and the decision is
still pending. The hearing of the petition for the fiscal year 2013 took place on 1 February 2017 and the
decision is still pending. Moreover, the Company filed a lawsuit versus the Municipality of Paiania with
the competent Administrative Court of Athens requesting the reimbursement of the municipal charges
imposed for the fiscal years 2010-2012 and already paid to the latter, amounting to €8.8m.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
55 of 57
