Tax

Over the past few years, tax legislation has changed dramatically and austerity measures implemented by the Greek Government have created a complex tax environment for local and foreign investors.

The Tax Practice Group is an integral part of Machas & Partners and is directly involved in all taxation matters. Its goal is to provide clients, both in Greece and abroad, with cost-effective solutions in structuring their investments, transactions and businesses with the aim of tax compliance while reasonably mitigating tax exposure and risk. The Taxation Practice Group also represents clients before tax audits and Greek tax courts.

The Tax Practice Group is comprised of five main specialty areas: (i) Greek and International Corporate Tax Advisory Services; (ii) Mergers and Acquisitions; (iii) Transfer Pricing; (iv) Private Client Services; and (v) Tax Diagnostic Reviews, Audits and Litigation.

Greek and International Corporate Tax Advisory Services

In the area of tax advisory, we advise on all areas of taxation (personal and corporate income tax, VAT, Books and Records Code, stamp duty, capital concentration tax, property taxes, gift and inheritance taxes etc.). Indicatively, tax advisory services include the following:

  • research and consultation on the direct and indirect tax treatment of proposed transactions, investments and businesses both in Greece and abroad;
  • interpretation of tax legislation and advising on obligations and tax issues arising therefrom, including assessing tax exposure and risk;
  • cross border taxation of profits, dividends, royalties and interest;
  • international tax and customs implications in cross border transactions in connection with the supply of goods and services;
  • general anti-abuse and anti-avoidance legislation;
  • remuneration policies for executives and employees as well as personal tax issues of local and expatriate employees; and
  • ad hoc corporate tax advice.

Machas & Partners is also in the position to assist clients in addressing foreign tax issues with respect to interests outside Greece, through its close affiliation and on-going cooperation with qualified tax advisors abroad.    

Mergers and Acquisitions

Machas & Partners, with its newly formulated Tax Practice Group, provide a variety of services that cover all tax needs of M&A work. Indicatively, we are in the position to assist clients with the following services:

  • tax optimization studies in the context of restructuring companies, mergers and acquisitions etc. and analysis, from a tax perspective, of the most efficient way of implementation of the merger or acquisition or takeover, after having taken into account the legal and financial terms of the transaction under planning;
  • analysis of the procedure and presentation of the timeframe of the merger or acquisition, as well as assistance in the management of the project;
  • tax due diligence of the enterprise to be acquired or taken over; and
  • support with the negotiations.

Transfer Pricing

The Tax Practice Group has the experience and know-how to assist Greek companies and branches of foreign companies in complying with their transfer pricing obligations in Greece, including properly and adequately documenting intra-group transactions and drafting annual Transfer Pricing Reports. To this effect, the Tax Practice Group can provide its clients with the following services:

  • reviewing whether particular companies within a group have the obligation to document intra-group transactions;
  • conducting functional and risk analysis of intra-group transactions;
  • drafting Transfer Pricing Reports;  
  • supporting the finance department during the completion of the Table of Transactions; and
  • assisting with the carrying out of the benchmarking study which is required for the completion of the Transfer Pricing Report.

Private Client Services

The Tax Practice Group also provides Private Client Services specializing in the day-to-day and long-term planning needs of individuals and private family enterprises. We provide clients with a complete range of services with respect to estate planning, personal tax and succession planning. As noted above, through its affiliation with qualified tax advisors in all jurisdictions in the world, Machas & Partners can also assist individual clients with their interests outside Greece.

Tax Diagnostic Reviews, Audits and Litigation

If requested, the Taxation Practice Group can conduct a diagnostic review to ascertain compliance with Greek tax laws. In particular, at the pre-tax audit stage, Machas & Partners can work with the client’s finance and accounting department to identify potential tax issues, omissions, obligations and risks that may arise during a tax audit and formulate a methodology to rectify the problem both retroactively, where this is legally feasible, and for the future. Upon commencement of any cooperation, we suggest that a diagnostic review be performed in order to determine the magnitude of the potential tax risk for the company and, mainly, in order to identify possible problems regarding procedures systematically followed by the company.

The Taxation Practice Group is fully equipped and qualified to support clients throughout the duration of a tax audit, from the moment the client receives the notification of the tax audit until the completion of the respective negotiations with the tax authorities and the issue of their tax findings. Indicatively, the services provided by Machas & Partners include the following:

  • assisting clients in communicating with the Greek tax authorities;
  • handling queries of the tax auditor during the “fieldwork” stage and supporting the client’s finance or accounting department dealing with the tax inspection;
  • addressing legal issues on the basis of Greek tax laws, circulars issued by the Greek Ministry of Finance and Greek and EU case law;
  • supporting the client to develop a strategy in the course of the tax audit;
  • drafting memos and preparing documentary evidence requested by the tax authorities;
  • reviewing and evaluating the tax authorities’ findings and the tax and legal implications arising from such findings;
  • advising on the tax treatment of issues raised by the tax authorities, commenting on the validity of the tax inspector’s findings and providing arguments in support of the client effectively contesting the tax authorities’ allegations; and  
  • supporting the client in its decision making process as concerns settling with the tax authorities or appealing before the Greek tax courts.  

If the client opts to appeal before the Greek tax courts, the Tax Practice Group is qualified and amply experienced in representing clients before Greek tax courts. In particular, the Tax Practice Group helps clients in formulating tax strategies with the aim of successfully substantiating the client’s position vis-à-vis the Greek courts and prepares the necessary appeals, pleadings, exhibits and legal memos to this end.

For more information about our tax practice please contact Tom Kyriakopoulos.