Tag: Fixed Assets  

Assets that are held by an enterprise either continuously or for a comparatively long period of time, generally more than one year

Greece vs "Cyprus Corp", January 2018, Court, Case No A 1109/2018

Greece vs “Cyprus Corp”, January 2018, Court, Case No A 1109/2018

Following an audit of “Cyprus Corp” for FY 2011, the tax authorities found that the intra-group purchases worth 6.363.281,83 € for mechanical and medical equipment from a group company in Cyprus, were overpriced by 3.833.503,78 €. Corporate taxation i Cyprus is significantly lower than in Greece. Hence, the overpricing resulted in the Cyprus Corp having technically increased its (high) tax depreciation in Greece and (low) tax profits in Cyprus, which in combination resulted in a lower overall tax payment of the group. An revised tax assessment – and a substantial fine – was issued by the tax authorities. Cypres Corp filed an appeal. Judgement of the Court The court predominantly decided in favor of the tax authorities. “Because, during the financial period 1/1-31/12/2011, Mr K. is a shareholder in the applicant company with a 22.81% share, chairman and managing director until 23/08/2011 and from 30/06/2010 to 01/11/2012 the sole shareholder of the Cypriot company ” “, with the result that ... Read more
Greece vs "Cyprus Corp", January 2018, Court, Case No A 417/2018

Greece vs “Cyprus Corp”, January 2018, Court, Case No A 417/2018

Following an audit of “Cyprus Corp” for FY 2011, the tax authorities found that intra-group purchases worth 5.947.034,44 € for mechanical and medical equipment from a related company in Cyprus, were overpriced by 3.693.150,15 €. Corporate taxation i Cyprus is significantly lower than in Greece. Hence, the overpricing resulted in the Cyprus Corp having technically increased its (high) tax depreciation in Greece and (low) tax profits in Cyprus, which in combination resulted in a lower overall tax payment of the group. An revised tax assessment – and a substantial fine – was issued by the tax authorities. Cypres Corp filed an appeal. Judgement of the Court The court predominantly decided in favor of the tax authorities. “Because, in the financial period 1/1-31/12/2011 Mr. is a shareholder in the applicant company with a 28.18% share, and from 30/06/2010 to 01/11/2012 the sole shareholder of the Cypriot company ‘……. “, with the result that the transacting undertakings in the present case are ... Read more