GLOBAL FORUM ON TRANSPARENCY AND EXCHANGE OF INFORMATION FOR TAX PURPOSES

GLOBAL FORUM ON TRANSPARENCY AND EXCHANGE OF INFORMATION FOR TAX PURPOSES
Peer Review Report Combined: Phase 1 + Phase 2, incorporating Phase 2 ratings

GREECE
Global Forum on Transparency and Exchange of Information for Tax Purposes Peer Reviews: Greece 2013
COMBINED: PHASE 1 + PHASE 2, INCORPORATING PHASE 2 RATINGS
November 2013 (reflecting the legal and regulatory framework as at April 2012)
This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the OECD or of the governments of its member countries or those of the Global Forum on Transparency and Exchange of Information for Tax Purposes. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
Please cite this publication as: OECD (2013), Global Forum on Transparency and Exchange of Information for Tax Purposes Peer Reviews: Greece 2013: Combined: Phase 1 + Phase 2, incorporating Phase 2 ratings, OECD Publishing. http://dx.doi.org/10.1787/9789264205666-en
ISBN 978-92-64-20565-9 (print) ISBN 978-92-64-20566-6 (PDF)
Series: Global Forum on Transparency and Exchange of Information for Tax Purposes Peer Reviews ISSN 2219-4681 (print) ISSN 2219-469X (online)
Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda.
OECD 2013
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TABLE OF CONTENTS 3
Table of Contents
About the Global Forum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Information and methodology used for the peer review of Greece . . . . . . . . . . . .11 Overview of Greece . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Recent developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Compliance with the Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 A. Availability of information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A.1. Ownership and identity information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A.2. Accounting records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A.3. Banking information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 23 52 61
B. Access to information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 B.1. Competent Authoritys ability to obtain and provide information . . . . . . . . 66 B.2. Notification requirements and rights and safeguards. . . . . . . . . . . . . . . . . . 76 C. Exchanging Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C.1. Exchange-of-information mechanisms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C.2. Exchange-of-information mechanisms with all relevant partners . . . . . . . . C.3. Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C.4. Rights and safeguards of taxpayers and third parties. . . . . . . . . . . . . . . . . . C.5. Timeliness of responses to requests for information . . . . . . . . . . . . . . . . . . 77 80 91 93 95 96
PEER REVIEW REPORT COMBINED PHASE 1 AND PHASE 2 REPORT GREECE OECD 2013
4 TABLE OF CONTENTS Summary of Determinations and Factors Underlying Recommendations. . . .101 Annex 1: Jurisdictions Response to the Review Report . . . . . . . . . . . . . . . . . .105 Annex 2: List of All Exchange-of-Information Mechanisms in Effect . . . . . . 107 Annex 3: List of all Laws, Regulations and Other Relevant Material . . . . . . .112 Annex 4: People Interviewed During On-Site Visit . . . . . . . . . . . . . . . . . . . . . .115
ABOUT THE GLOBAL FORUM 5
About the Global Forum

The Global Forum on Transparency and Exchange of Information for Tax Purposes is the multilateral framework within which work in the area of tax transparency and exchange of information is carried out by over 120 jurisdictions, which participate in the Global Forum on an equal footing. The Global Forum is charged with in-depth monitoring and peer review of the implementation of the international standards of transparency and exchange of information for tax purposes. These standards are primarily reflected in the 2002 OECD Model Agreement on Exchange of Information on Tax Matters and its commentary, and in Article 26 of the OECD Model Tax Convention on Income and on Capital and its commentary as updated in 2004. The standards have also been incorporated into the UN Model Tax Convention. The standards provide for international exchange on request of foreseeably relevant information for the administration or enforcement of the domestic tax laws of a requesting party. Fishing expeditions are not authorised but all foreseeably relevant information must be provided, including bank information and information held by fiduciaries, regardless of the existence of a domestic tax interest or the application of a dual criminality standard. All members of the Global Forum, as well as jurisdictions identified by the Global Forum as relevant to its work, are being reviewed. This process is undertaken in two phases. Phase 1 reviews assess the quality of a jurisdictions legal and regulatory framework for the exchange of information, while Phase 2 reviews look at the practical implementation of that framework. Some Global Forum members are undergoing combined Phase 1 and Phase 2 reviews. The Global Forum has also put in place a process for supplementary reports to follow-up on recommendations, as well as for the ongoing monitoring of jurisdictions following the conclusion of a review. The ultimate goal is to help jurisdictions to effectively implement the international standards of transparency and exchange of information for tax purposes. All review reports are published once adopted by the Global Forum and thus represent agreed Global Forum reports. For more information on the work of the Global Forum on Transparency and Exchange of Information for Tax Purposes, and for copies of the published review reports, please refer to www.oecd.org/tax/transparency and www.eoi-tax.org.
EXECUTIVE SUMMARY 7
Executive Summary
1. This report 1 summarises the legal and regulatory framework for transparency and exchange of information in Greece as well as practical implementation of that framework. The international standard which is set out in the Global Forums Terms of Reference to Monitor and Review Progress Towards Transparency and Exchange of Information, is concerned with the availability of relevant information within a jurisdiction, the competent authoritys ability to gain timely access to that information, and in turn, whether that information can be effectively exchanged with its exchange of information partners. While Greece has a well developed legal and regulatory framework and extensive experience in exchanging information with foreign counterparts in tax matters, the report identifies some areas where Greece could more effectively implement the international standard. 2. Greece, officially the Hellenic Republic, is a country in south-eastern Europe, with more than 11 million inhabitants. Greeces economy is primarily based on the tourism, shipping, banking and finance and construction sectors. Greece has a comprehensive income tax system for natural and legal persons and has been concluding double taxation conventions (DTCs) allowing for the international exchange of information since the late 1950s. 3. Greeces legal and regulatory framework for the maintenance of ownership information results in such information being available in respect of Greek companies, partnerships, foundations and associations. The quality of the Greek framework is recognised by Greeces peers who confirmed that Greece has satisfactorily delivered ownership information whenever so requested. There are many instances where the holders of bearer shares in socits anonymes and shipping companies must be identified, including all cases where such shares are transferred, though these do not ensure the availability of information on the identity of persons holding bearer shares in every circumstance. Moreover, there are no penalties on shipping companies
1. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
8 EXECUTIVE SUMMARY
for not keeping a book of shares. Foreign companies having their place of effective management in Greece are not obliged to maintain ownership information in all circumstances and Greek trustees of foreign trusts are not required to identify beneficiaries who have less than 25% interest in the trust. 4. Companies, partnerships and non-profit organisations as well as branches of foreign enterprises are required to keep full accounting records, including underlying documentation, for a minimum of five years. That is recognised by Greeces peers who confirmed that Greece has satisfactorily delivered accounting information when requested. However, there are no requirements within the Greek legislation which ensure that sufficient accounting records are kept in all cases for foreign trusts which have Greekresident trustees or administrators. 5. In Greece, the competent authority for exchanging information in the field of direct taxes is the Ministry of Finances Department of International Administrative Co-operation for Direct Taxes, within the Directorate of the International Economic Relations (DIER). The competent authority commonly relies on other departments of the Ministry of Finance - including the local tax offices, the General Directorate of Tax Audits and the General Directorate for Taxation and the Financial and Economic Crime Unit - to collect information. The Ministry of Finance has significant information resources and broad powers to obtain bank, ownership, identity, and accounting information and have measures to compel the production of such information. The application of rights and safeguards in Greece does not restrict the scope of information that the tax authorities can obtain. Input from a number of jurisdictions suggests that over the last three years Greece has not had difficulties accessing information in order to respond to an EOI request. 6. Greece has a longstanding involvement in international exchange of information in tax matters. Currently, Greece is able to exchange information in tax matters through a broad network of bilateral treaties, covering 56 jurisdictions through 55 DTCs and one tax information exchange agreement (TIEA). 54 of these 56 instruments are currently in force. A domestic tax interest requirement does not exist in Greece and there are no restrictions in the Greek legislation as regards the authorities access to information held by banks. More than 90% of Greeces DTCs are in accordance with the standard. Greeces EOI instruments cover its relevant partners including major trading partners as well as all EU countries and most OECD member jurisdictions. In addition, on 21 February 2012, Greece signed the COE/OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters. 7. Regarding the effectiveness of exchange of information, while international counterparts exchanging information with Greece have often commented positively on the level of the information provided by their Greek
EXECUTIVE SUMMARY 9
counterpart, some concerns remain regarding the ability of Greece to provide information in a timely manner. The ratification of EOI arrangements can take several years in some occasions. Greece should continue its efforts to ensure the expeditious ratification of all EOI arrangements signed with counterparts. Recently revised practices and a recent centralisation of the commercial registry containing taxpayer information will most likely also contribute to expediting Greeces responses to EOI requests. 8. Greece has been assigned a rating 2 for each of the 10 essential elements as well as an overall rating. The ratings for the essential elements are based on the analysis in the text of the report, taking into account the Phase 1 determinations and any recommendations made in respect of Greeces legal and regulatory framework and the effectiveness of its exchange of information in practice. On this basis, Greece has been assigned the following ratings: Compliant for elements A.2, A.3, B.1, B.2, C.2, C.3 and C.4, Largely Compliant for elements C.1 and C.5, and Partially Compliant for element A.1. In view of the ratings for each of the essential elements taken in their entirety, the overall rating for Greece is Largely Compliant.
2.
This report reflects the legal and regulatory framework as at the date indicated on page 1 of this publication. Any material changes to the circumstances affecting the ratings may be included in Annex 1 to this report.
INTRODUCTION 11
Introduction
Information and methodology used for the peer review of Greece
9. The assessment of the legal and regulatory framework of Greece and the practical implementation and effectiveness of this framework was based on the international standards for transparency and exchange of information as described in the Global Forums Terms of Reference to Monitor and Review Progress Towards Transparency and Exchange of Information and was prepared using the Global Forums Methodology for Peer Reviews and Non-Member Reviews. The assessment was based on the laws, regulations, and exchange of information mechanisms in force or effect as at April 2012, other information, explanations and materials supplied by Greece during and after the on-site visit that took place on 30 January-2 February 2012, and information supplied by partner jurisdictions. During the on-site visit, the assessment team met with officials and representatives of the relevant Greek public agencies including the Ministry for Finances Economic Enforcement Unit, Directorate of Tax Audits, Directorate of International Economic Relations and the Financial Prosecutor (see Annex 4). 10. The Terms of Reference break down the standards of transparency and exchange of information into 10 essential elements and 31 enumerated aspects under three broad categories: (A) availability of information; (B) access to information; and (C) exchanging information. This review assesses Greeces legal and regulatory framework and the implementation and effectiveness of this framework against these elements and each of the enumerated aspects. In respect of each essential element a determination is made regarding Greeces legal and regulatory framework that either: (i) the element is in place, (ii) the element is in place but certain aspects of the legal implementation of the element need improvement, or (iii) the element is not in place. These determinations are accompanied by recommendations for improvement where relevant. In addition, to reflect the Phase 2 component, recommendations are made concerning Greeces practical application of each of the essential elements and a rating of either: (i) compliant, (ii) largely compliant, (iii) partially compliant, or (iv) non-compliant is assigned to each element. An overall rating is also assigned to reflect Greeces overall level of compliance with the standards.
12 INTRODUCTION
11. The assessment was conducted by an assessment team composed of two expert assessors and a representative of the Global Forum Secretariat: Mr. Gianluca Pirozzi, Head of Consultancy and Co-ordination, Italian Ministry of Economy and Finance; Mr. Wayne Lonnie Brown, Assistant Financial Secretary, Bermudan Ministry of Finance; and Ms. Renata Teixeira from the Global Forum Secretariat. The ratings assigned in this report were adopted by the Global Forum 12. in November 2013 as part of a comparative exercise designed to ensure the consistency of the results. An expert team of assessors was selected to propose ratings for a representative subset of 50 jurisdictions. Consequently, the assessment teams that carried out the Phase 1 and Phase 2 reviews were not involved in the assignment of ratings. These ratings have been compared with the ratings assigned to other jurisdictions for each of the essential elements to ensure a consistent and comprehensive approach. The assignment of ratings was also conducted at a different time from those reviews, and the circumstances may have changed in the meantime. Readers should consult Annex 1 for information on changes that have occurred.
Overview of Greece
13. Greece, officially the Hellenic Republic, is a country in south-eastern Europe, situated on the southern end of the Balkan Peninsula. It is bordered by Albania, Bulgaria, Turkey, the Former Yugoslav Republic of Macedonia as well as the Aegean Sea, Ionian Sea, and the Mediterranean Sea. With a total territory of 131 940 square kilometres, which includes over 4 000 islands, and a total coastline of 13 676 kilometres, Greece has a population of approximately 11.3 million. 3 Athens (the capital), Thessalonica, Piraeus and Patras are the countrys major cities. 4 14. From 1 January 2011, in accordance with the Kallikratis plan (Law 3852/2010), the administrative system of Greece was overhauled. The former system of 13 regions, 54 prefectures and 1 033 municipalities and communities was replaced by 7 decentralised administrations, 13 regions and 325 municipalities. The regions and municipalities are fully self-governed, with their first elections held on 7 November and 14 November 2010. Greece has one autonomous region; Mount Athos in the North Part of Greece named Macedonia. 15. Greece has an open market economy with the public sector accounting for about 40% of GDP. The nations economic activity is primarily based on the tourism, shipping, banking and finance and construction sectors.
3. 4. Eurostat (http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/). Source: FATF Third Mutual Evaluation Report issued on 29 June 2007 (www. oecd.org/dataoecd/2/55/38987373.pdf).
INTRODUCTION 13
The Greek economy grew by about 4.0% between 2003 and 2007, largely because of an investment boom and infrastructure upgrades for the 2004 Athens Olympic Games. 5 By the end of 2009, as a result of a combination of international and local factors (respectively, the world financial crisis and uncontrolled government spending), the Greek economy faced a severe crisis and the Greek government revised its deficit from an estimated 6% to 12.7% of GDP. The economy went into recession in 2009 in the wake of the world financial crisis. 6 Currently, structural reforms are under discussion in an aim to re-energising growth and improving competitiveness. 16. The European Union (EU) is Greeces major trading partner, with more than half of all Greek two-way trade being intra-EU. In addition to the EU, Greece exports also to Turkey, the United States, Albania and the Russian Federation. Imports mainly come from (in addition to the EU), the Russian Federation, China, the Republic of Korea and Libya. 7
Legal system
17. The 1975 Constitution, which describes Greece as a parliamentary republic, guarantees civil liberties and vests the powers of the head of state in a President elected by parliament for a five year term. The President performs some executive and legislative functions in addition to ceremonial duties. The Prime Minister is the head of government, and executive power is exercised by the Prime Minister and the cabinet. Legislative power is vested in the Hellenic Parliament. Greece elects a legislature by universal suffrage of citizens over the age of 18. The Hellenic Parliament has 300 members, elected for a fouryear term. Regional authorities do not have powers concerning tax matters. 18. Greece has a civil law system. For the most part, Greek law is codified and laws enacted by Parliament, in the form of codes or other statutes, are sources of law in addition to international law (Civil Code Art. 1). In addition, pursuant to Article 43 of the Constitution, decrees are issued by the President of the Republic as necessary for the execution of laws and regulations are issued by the competent Ministers (ministerial decisions), on the basis of authorisations contained in the respective laws and within the limits set in such authorisations. The generally accepted rules of international law as well as ratified international treaties directly become part of domestic
5. 6. 7. See previous footnote. Greeces Sovereign-Debt Crunch: A Very European Crisis, The Economist. 4 February 2010. www.economist.com/world/europe/displaystory.cfm?story_ id=15452594. Retrieved 11 April 2012. According to the trade information published by the World Trade Organization with respect to Greece in October 2011 (http://stat.wto.org/CountryProfiles/GR_e. htm, accessed 7 February 2012).
14 INTRODUCTION
law and prevail over any domestic legal provisions in contrary (Constitution Art. 28(1)). 8 19. Greek law has been greatly influenced by EU law and the acquis communautaire, with EU Directives, Regulations, and Framework Decisions becoming an integral part of the legal system either automatically or through implementing legislation. Greek law is also shaped by other types of international law, in particular the treaties adopted within the framework of the United Nations and the Council of Europe. Greece is subject to the jurisdiction of the European Court of Human Rights and the European Court of Justice. 20. The judiciary is independent of the executive and the legislature and comprises three Supreme Courts: the Court of Cassation, the Council of State and the Court of Auditors. There are civil courts, which judge civil and criminal cases and administrative courts, which judge disputes between citizens and the Greek administration, including the tax administration. Appeals may be made to the Courts of Appeal in the relevant region. While lower courts are not formally bound by judicial precedent, the decisions of the higher courts, especially those of the Supreme Court (Areios Pagos), play an important role in the decision-making process of lower courts. Prosecutions are conducted by the Public Prosecutors Office, which is divided by geographic region and level of court. 21. Greece is a member of the EU and became the twelfth member of the Eurozone in 2002. It is a founding member of the United Nations and the Organisation for Economic Co-operation and Development and also a member of a number of other international organisations, including the International Monetary Fund and the Council of Europe. Greece is a member of the Global Forum on Transparency and Exchange of Information for Tax Purposes.
The tax system

22. Greeces tax system is primarily based on the principles set out in the Greek Constitution. The tax system comprises both direct and indirect (value-added tax, transfer tax, luxury goods tax, stamp duty, customs duty and excise duty) taxes. With respect to direct taxes, the Income Tax Code (Law 2238/1994) and the Code of Books and Records are the most relevant statutory provisions. Taxes are only levied at the national level.
8. Article 28.1 of the Greek Constitution provides that The generally recognised rules of international law, as well as international conventions as of the time they are sanctioned by statute and become operative according to their respective conditions, shall be an integral part of domestic Greek law and shall prevail over any contrary provision of the law.
INTRODUCTION 15
23. Individuals are subject to national income tax. Greek law defines six categories of taxable income: income from: (i) immovable property; (ii) movable property; (iii) business; (iv) agriculture; (v) employment; and (vi) professional activities and other sources. Capital gains are also subject to taxation. An individual who is resident for tax purposes in Greece is taxable on his/her worldwide income, while individuals whose tax residency is outside Greece are liable to tax on their Greek-sourced income. An individual is resident in Greece if his domicile or habitual abode is in Greece (Civil Code Art. 51). An individual is considered to have a habitual abode in Greece if s/he stays in Greece for more than 183 days in a calendar year (Law 3943/2011 Art. 12). The individuals net income and gains are added together to determine a total net income to which a scalable tax rate is applied. Law 4024, gazetted on 27 October 2011, introduced a new tax scale consisting of eight tax brackets with rates from 10% to 45%. The new income tax rates apply retroactively to year 2011 onwards. 24. Legal entities that are resident for tax purposes in Greece are taxed on their worldwide income, while foreign companies in Greece which are not effectively managed in Greece are taxed only on Greek-sourced income. Foreign companies are also taxed on income derived through their permanent establishments in Greece. Greek tax law does not provide for a definition of residency for legal entities. The tax residence of a company or partnership is determined on the basis of the location of its legal seat, as provided in the Greek Civil Code. Greek case law provides that residency of a legal entity is defined according to its place of effective management, regardless if a different legal seat may be stipulated in the legal entitys articles of association. 25. The corporate income tax rate was 24% for fiscal year 2011, reduced to 20% for fiscal year 2012 onwards. Distributions of profits were subject to withholding tax at a 21% rate in 2011; 25% from 2012 onwards. Capital gains are also subject to taxation. The tax rate for partnerships is 20% in relation to the proportion of profits relating to general partners who are individuals and 25% otherwise. 26. Greek tax legislation also incorporates EU Directive 2003/49/EC of 3/6/2003 with respect to a common system of taxation applicable to interest and the royalty payments between associated companies of different Member States, and EU Directive 90/435/EC of 23/7/1990 with respect to the common system of taxation applicable to parents and subsidiaries of different Member States. 27. All residents and non-residents with financial affairs in Greece must have Tax Identification Numbers (TINs). The TIN is unique for each person and works as a form of identification for the Greek authorities. The TIN is required for large transactions such as: purchase of property, cars or boats. The TIN must be used in all dealings with the Greek tax authorities (e.g. when filing an annual tax return), when paying property taxes and in various other transactions with e.g. financial institutions.
16 INTRODUCTION
28. Greece has a broad network of tax treaties as well as other bilateral and multilateral information exchange agreements in force with 56 partners, including some which date back to the 1950s. The competent authority for exchange of information is the Directorate of International Economic Relations, which is part of the Ministry of Finance.
Shipping business
29. The shipping industry is a key element of Greek economic activity, and one of the countrys most important industries, dating back to ancient times. In 2006, it accounted for 4.5% of GDP and employed about 160 000 people (4% of the Greek workforce). 9 According to a United Nations Conference on Trade and Development report in 2010, the Greek merchant navy is the largest in the world at 15.96% of the worlds total capacity. This is a drop from 18.2% in 2006. 10 30. Shipping companies are subject to a separate registration regime. The Greek Ministry of Development, Competitiveness and Shipping (until 2011 the Ministry of Merchant Marine 11) maintains the register for shipping companies. Also, foreign shipping companies may establish representative offices in Greece. Resident and non-resident shipping companies or offices owning Greek-flagged ships are subject to tonnage tax provided by Law 27/1975 and shipping companies that manage or operate ships belonging to third parties are taxed with corporate income tax (Law 959/1979 Art. 58(4)). All shipping companies in Greece are required to file tax returns and comply with tax and company law requirements established to those companies.
Overview of the financial sector and relevant professions

31. The Greek financial sector is divided into three segments: banks, insurance companies and other financial institutions (including those operating in the capital market). 32. The six largest Greek banking groups account for more than 63% of banking sectors assets. In January 2012, there were 57 credit institutions 12 in Greece, with total assets of EUR 465 938 million. 13 The Bank of Greece sets the regulatory framework and supervises all credit institutions and some types of financial institutions, including leasing companies, factoring
9. 10. 11. 12. 13. National Bank of Greece Press Release Greek Shipping is Modernized to Remain a Global Leader and Expand its Contribution to the Greek Economy (11 May 2006). See www.unctad.org/en/docs/rmt2010_en.pdf. See www.yen.gr/wide/home.html. www.bankofgreece.gr/BogDOcument En/1_CreditInstitutions.xls. www.bankofgreece.gr/BogDocumentEn/Aggregated_balance_sheet_CI.xls.
INTRODUCTION 17
companies and bureaux de change. The vast majority (90% in terms of banking sectors assets) of Greek and foreign credit institutions that operate in Greece are represented by the Hellenic Bank Association. Greeces insurance sector is relatively concentrated since the five biggest 33. insurance companies account for 71% of the total production of premiums of life insurance and the 10 biggest insurance companies hold 91.68% of the total production of premiums of life insurance in 2010. 14 The sectors total assets in 2010 were EUR 15 745 million. 15 34. Currently, the Athens Stock Exchange is the only exchange operating in Greece and it also operates a derivatives market and a fixed income/bond market with little activity. Greeces professional service sector comprises approximately 41 000 35. lawyers, 3 200 notaries, 20 000 accountants, and 900 registered certified auditors of whom 750 are active. Trust and company service providers are not separately recognised nor regulated as a separate business category to operate in Greece. Lawyers are organised in Bar Associations, one for each court of first instance. The profession is subject to the Lawyers Code, the Code of Conduct and the rules of the Bar Associations. Notaries must be licensed by the Ministry of Justice and must belong to the Association of Notaries with supervision being carried out by the Public Prosecutors Office. Their conditions of service are governed by the Notaries Code. The Hellenic Accounting and Auditing Standards Oversight Board (ELTE) recommends accounting standards and carries out oversight of the quality of audits conducted by the certified auditors. ELTE has approximately 900 certified auditors and 30 audit firms on its register and has the power to issue and revoke licences. The Institute of Certified Public Accountants of Greece (SOEL) has approximately 2 000 members including those registered in ELTE. The Chamber of Economists (OEE) is the licensing authority of other accountants and its members may carry out audits of smaller companies which are not required to undergo audits by certified auditors.
14. 15.
Hellenic Association of Insurance Companies: www.eaee.gr/cms/eng/uploads/ grmark-i-en.pdf. www.eaee.gr/cms/eng/uploads/grmark-v-en.pdf.
18 INTRODUCTION
Anti money laundering/combating financing of terrorism legislation

36. In 2008, Greece enacted a new law to reinforce and improve Greeces prevention and suppression of money laundering and terrorist financing (the AML Law). The AML Law, as amended, transposes relevant EU Directives. 16 Certain public authorities, including the Bank of Greece and the Hellenic Capital Market Commission, are assigned responsibility for supervising financial institutions and designated service providers compliance with customer due diligence (CDD) measures and other anti-money laundering and counter-terrorist financing measures. Credit and financial institutions, accountants, auditors, tax consultants, notaries and other independent legal professionals, and trust and company service providers are among the entities and professionals required to conduct CDD. 37. The adoption of the AML Law has resulted in significant progress with regard to Greeces compliance with the international standards set by the Financial Action Task Force (FATF). 17 Greece has strengthened its CDD requirements and the capacity of its financial intelligence unit.
Recent developments
38. On March 2011, a new tax law (Law 3943/2011) came into force, amending provisions of the general tax code. The new law includes: (i) measures to combat tax evasion and tax avoidance, including the establishment of an Attorney General for economic crimes; (ii) reorganisation of audit and enforcement mechanisms; and (iii) introduction of a tax simplification network. Law 3943/2011 also established a new department within the Directorate of the International Economic Relations, the Department of International Administrative Co-operation for Direct Taxes (Department C). Department C is responsible for international exchange of information and for mutual administrative assistance in the field of direct taxes. A centralised registration system, the General Commercial Registry, 39. became operational in April 2011. The GCR contains information, including ownership, in relation to the main types of business entities in Greece, including societs anonymes, limited liability companies, general and limited partnerships.
16. 17. Directive 2005/60/EC of the European Parliament and of the Council and certain provisions of Directive 2006/70/EC of the European Commission. FATF Interim Follow-up Report, 19 February 2010 (www.fatf-gafi.org/dataoecd/23/22/44725108.pdf), and Tenth Follow-up Report, 28 October 2011 (www. fatf-gafi.org/dataoecd/39/46/48967586.pdf).
INTRODUCTION 19
40. In September 2010 Greece entered into its first tax information exchange agreement (TIEA), with Guernsey. Other TIEAs are in various stages of negotiation (with Antigua and Barbuda, Bermuda, the Cayman Islands, the Cook Islands, Gibraltar, Grenada, Jersey, Mauritius, Saint Kitts and Nevis, Saint Lucia and Samoa). Greece continues extending its TIEA network and has approached four other jurisdictions (Panama, the Isle of Man, the Netherlands Antilles and the British Virgin Islands). 41. On 21 February 2012, Greece signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters developed by the OECD and the Council of Europe. The updated Multilateral Convention, which incorporates internationally agreed standards for exchange of information in tax matters, will allow for exchange of information with 33 jurisdictions once all ratifications are complete. 18 Greece has also signed the multilateral convention on mutual assistance in criminal matters (including its attached protocol) of the Council of Europe. 42. On 11 April 2012, Law 4072/2012 was published providing, among other developments, new framework for partnerships, including general partnerships, limited partnership and silent partnerships.
18.
Australia, Belgium, Brazil, Canada, Costa Rica, Denmark, Finland, France, Georgia, Germany, Italy, Japan, Korea, Mexico, Moldova, Netherlands, Norway, Poland, Portugal, the Russian Federation, Slovenia, South Africa, Spain, Sweden, Turkey, Ukraine, the United Kingdom and the United States.
COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 21
Compliance with the Standards
A. Availability of information
Overview
43. Effective exchange of information requires the availability of reliable information. In particular it requires information on the identity of owners and other stakeholders as well as information on the transactions carried out by entities and other organisational structures. Such information may be kept for tax, regulatory, commercial or other reasons. If such information is not kept or the information is not maintained for a reasonable period of time, a jurisdictions competent authority may not be able to obtain and provide it when requested. This section of the report describes and assesses Greek legal and regulatory framework on availability of information. It also assesses the implementation and effectiveness of this framework. 44. A comprehensive legal and regulatory framework is in place in Greece for the maintenance of ownership information. All companies, partnerships, foundations and associations are required to be registered in the tax registry and the most common companies and partnerships are also required to be registered in the General Commercial Register. Major reforms are underway with respect to both registries, to make registration information centrally available. Information on founders is required to be provided upon registration directly or indirectly (by means of lodging the articles of association signed by founders). Legal entities are also required to keep a register of members/shareholders. Moreover, pursuant to the Greek anti-money laundering legislation (the AML Law), financial institutions and other relevant professions such as chartered accountants, notaries and lawyers are required
22 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

to perform customer due diligence (CDD) and are, therefore, also required to keep ownership information on all entities and arrangements, including trusts. Greeces peers confirmed that Greece has satisfactorily delivered ownership information when requested. 45. There are many instances where the holders of bearer shares in socits anonymes (SAs) and shipping companies (SCs) must be identified, including all cases where such shares are transferred, though these do not ensure the availability of information on the identity of persons holding bearer shares in every circumstance. 46. The concept of trust as it is under the common law does not exist under Greek Law. There are no obstacles for a Greek citizen to be trustee of a foreign trust. The availability of information concerning foreign trusts with a link to Greece is, in most cases, ensured by the combined application of general record-keeping requirements under tax law and the anti-money laundering legislation. The AML Law requires Greek trustees to identify the settlors and beneficial owners of the trusts for which they act. There is a gap concerning the identification of beneficiaries who have less than 25% interest in the trust, however. 47. The accuracy of the information to be provided or maintained by all relevant entities is ensured through sanctions for non-compliance with the legal requirements. While no penalties are established in relation to shipping companies for not keeping a book of shares, that does not appear to have any adverse impact in practice. Shareholders who are not registered in the book of shares are not recognised as such by the company (Law 959/79 Art. 7(3)). Moreover, penalties do exist for shareholders that fail to report the transfer of shares to the tax authorities. 48. Greek companies, partnerships and non-profit organisations as well as branches of foreign enterprises are required to keep adequate accounting records including underlying documentation for a minimum of five years. However, there are no requirements within the Greek legislation which ensure that sufficient accounting records are kept in all cases for foreign trusts which have Greek-resident trustees or administrators. Greeces peers confirmed that Greece has satisfactorily delivered accounting information when requested. 49. In respect of banks and other financial institutions, the commercial, financial, tax and AML legislation impose appropriate obligations to ensure that all records pertaining to customers accounts as well as related financial and transactional information are available.
A.1. Ownership and identity information

Jurisdictions should ensure that ownership and identity information for all relevant entities and arrangements is available to their competent authorities.
Greek registers
50. Greece has two primary registers: the tax register and the General Commercial Register. Both registration systems are currently undergoing important reforms to: (i) simplify registration procedures, make registration faster and less expensive for businesses and individuals; (ii) ensure that information is centralised in electronic form and easily accessed by government authorities and private citizens. 51. The General Commercial Register (GCR), for centralised business registration, became operational on 4 April 2011. The GCR contains information, including ownership information, of the main types of business entities, including limited liability companies, socits anonymes and general and limited partnerships incorporated on or after 4 April 2011. Information pertaining to entities incorporated before that date is expected to be migrated to the GCR by 2012. Also launched on 4 April 2011 was a simplified procedure for the incorporation of companies and partnerships (Ministerial Decision K1-802/2011). This One-Stop Shop for registration enables the public notary who draws up the act of incorporation of an entity to complete all registration formalities for the entitys incorporation. This registration via the One-Stop Shop still involves provision of the same information as required in various pre-existing registration systems. 52. Prior to implementation of the GCR, each type of company and partnership had different registration obligations and dealt with different registration authorities. Information concerning companies and branches that were incorporated prior to 4 April 2011 is still available in these registries. For limited liability companies, their acts of incorporation and ownership information are kept at the company registries at Greeces 62 courts of first instance. These courts of first instance also hold copies of partnership agreements for general partnerships and limited partnerships. For socits anonymes, the registration information is held in the 54 Prefectures by the local offices of the Ministry of Development. 53. In order to start their activities in Greece, all legal entities and individuals must be registered with the tax registry and obtain a Tax Identification Number (TIN). The Greek authorities explained that taxpayers can only have one TIN and all information of the taxpayer is linked to this number. They have also indicated that a system is being implemented to link the TIN of a legal entity with the TINs of its shareholders/members.

54. Greece has three additional registers containing ownership information for relevant entities: civil law partnerships and associations continue to be registered with the courts of first instance (this registration is not migrating to the GCR); 19 foundations are required to register with one of Greeces Ministries - most commonly with the Ministry of Finance - depending on the foundations purposes; and the Ministry of Development, Competitiveness and Shipping, (formerly Ministry of Merchant Marine) maintains the register for shipping companies. The register is publicly accessible.
Companies (ToR 20 A.1.1)

55. There are several different types of legal persons in Greece, characterised by their nature, function and legal status. Greek law provides for two main structures for carrying on business for economic gain: companies and partnerships. Apart from these, business can be carried out by sole traders, joint ventures and branch offices. 56. The types of companies are: limited liability companies (LLCs): LLCs are governed by Law 3190/1955, as amended. The liability assumed by the members is limited to the amount contributed by each member in return for their participation. The minimum capital for establishment of a LLC is EUR 4 500, fully paid up at the time of incorporation (Art. 4). An LLC may be established by a single person or be subsequently modified for that purpose (Presidential Decree 279/1993). A participation in a LLC cannot be traded in a public market. Moreover, partners have the right to manage and represent the company (Art. 6(2)) and the transfer of LLC parts to third parties can be restricted (Art. 6(2)); socits anonymes (SAs): SAs are governed by Law 2190/1920, as amended. Shareholders liability is limited to the amount of their investment. An SA may be established by one or more persons. The minimum capital is EUR 60 000, fully paid up at the time of
19. 20.
However, civil law partnerships and associations that are exercising or intend to exercise business or professional activity, without acquiring the commercial capacity, may choose to register with the GCR (Article 1(2) of Law 3419/2005). Terms of Reference to Monitor and Review Progress Towards Transparency and Exchange of Information.
incorporation. SAs shares may be traded on the stock exchange. SAs may issue bearer shares (as analysed in section A.1.2. of this report); shipping companies: Shipping companies (SCs) are established pursuant to specific legislation: Law 959/1979. Shipping companies must have as their exclusive object the ownership of Greek commercial ships, or operation or management of commercial ships flying the Greek or a foreign flag, as well as acquisition of shares of other shipping companies (Art. 1). The minimum capital is EUR 5 000 (Art. 5). The participation of citizens or legal entities of countries that are not members of the European Union or do not belong to the European Economic Area in Shipping Companies is restricted to a percentage of shares of less than 50% of the companys total share capital (Art. 10). SCs may issue bearer shares (as analysed in section A.1.2. of this report); and societas Europeae SE (European companies): These are regulated by Council Regulation (EEC) No. 2157/2001 on Statute for a European Company, which permits the creation and management of companies with a European dimension, free from the territorial application of national company law. Pursuant to Section 10 of the Council Regulation, the rules that apply to European companies should be the same as those applicable to public limited companies. In Greece, the requirements provided to SAs apply mutatis mutandis to SEs (Law 3412/2005 Art. 4).
57. As at December 2011, there were 51 168 SAs, 26 916 LLCs, 15 079 single-member LLCs, 6 060 shipping companies and 1 SE registered in Greece.
Information held by government authorities

58. The constitutive documents of LLCs and SAs articles of association, act of incorporation etc. must be drawn up before a public notary in the form of a notarial deed (Laws 3190/1955 and 2190/1920). The constitutive document of a LLC must contain, inter alia, the name, profession, nationality and address of the LLCs members (Law 3190/1955 Art. 6). In the case of SAs, the articles of association must include personal identification of the natural or legal persons that have signed the articles of association or in whose name and on whose account the articles of association of the company have been signed (Law 2190/1920 Art. 2(2)(a)). The wording of Law 2190/1920 indicates that all SA founders are required to sign the articles of association or to indicate a representative to do so. The constitutive documents of shipping companies must have the founders signatures authenticated by a notary public (Law 959/1979 Arts.2(1) and 50).
SAs and LLCs incorporated prior to 4 April 2011

59. In the case of LLCs, prior to 4 April 2011, a copy of the constitutive documents was deposited by the public notary responsible for drawing them up (or any member or the administrator of the LLC) for approval with the secretary of the court of first instance with jurisdiction for the area where the company had its registered office (seat), within one month from the date the document was drawn up (Law 3190/1955 Art. 8(1)). Subsequently, the constitutive document, the approving decision from the court of first instance and information on the legal owners of the LLC were recorded in the commercial registry (registry of LLCs) held in the competent court of first instance and a summary thereof was published in the official gazette (Law 3190/1955 Art. 8(3)). 60. For SAs, prior to 4 April 2011, the constitutive document was filed with the competent prefecture which then approved the formation of the company. The constitutive document and approving decision were then recorded in the commercial registry (registry of SAs) held in the prefecture and published in the official gazette Law 2190/1920 Art. 7b). The registry of SAs contained information on the SAs owners, as mentioned in the articles of association and in the minutes of shareholders general meetings (for bearer shares see section A.1.2 of this report below). 61. Any subsequent amendment in the constitutive documents of LLCs, including changes in the members, had also to be filed with the respective court of first instance and be published in the official gazette (Law 3190/1955 Art. 38(4)). The same procedure was applicable to amendments in the constitutive acts of SAs (changes in the articles of association were registered with the prefectures), however, it is not mandatory that the articles of association note changes in shareholders. 62. These registers contain information on all LLCs and SAs incorporated since 1920. Older documents are not available in electronic format, but all hard copies are kept and are available for consultation. The constitutive documents of SAs and LLCs and any subsequent amendments are also published in the Official Gazette, are available in electronic format on the website of the Greek National Printing Office and are open for consultation free of charge. 63. The primary purpose of the commercial registry is to provide entities with a way to publicise information. The commercial registrar checks the authenticity of the data received, as well as whether the content of the various acts (articles of association, minutes of general meetings and Board of Directors meetings) comply with the legal provisions from a formal perspective and whether stated increases in capital, as decided by the company bodies, have in fact occurred. More detailed monitoring is performed as part of the registration with the tax authorities, as discussed below.
SAs and LLCs incorporated since 4 April 2011 Simplified registration procedure
64. A simplified procedure for the registration of companies (LLCs and SAs) and partnerships (general and limited partnerships) was implemented on 4 April 2011 (Ministerial Decision K1-802/2011). The One-Stop Shop enables the certified public notary responsible for drawing up the act of incorporation of a company to complete the commercial and tax registration processes on behalf of the company. In addition, as of 4 April 2011, ownership information for the entities registered under the One-Stop Shop procedure is available in a centralised registration system; the General Commercial Registry (GCR). 65. In order to incorporate and register a company under the new procedure, the founders or their representatives must submit to the One-Stop Shop the names and copies of the identification documents of all members i.e. copies of identity cards for natural persons and articles of association/ act of incorporation for legal persons (Ministerial Decision K1-802/2011). Members who are foreign legal persons are required to submit a certificate of good standing issued by their country of residence and a power of attorney appointing the legal representative in Greece for purposes of acquiring their own tax identification number (Ministerial Decision K1-802/2011).
Shipping companies
66. Shipping companies (SCs or shipping companies) must register in the Register of Shipping Companies (Law 959/1979 Art. 48). The Registrar is accountable to the Ministry of Development, Competitiveness and Shipping (MOD) (Art. 48(1)) and is under the jurisdiction of the Chief of the Court of First Instance of Piraeus (Art. 49). 67. Shipping companies must lodge their articles of association and additional documentation for registration purposes (Art. 52). The articles of association must have the founders signatures authenticated by a public authority or a public notary (Arts.2(1) and 50). The Register is publicly accessible by any person and copies of documents may be taken (Art. 55).
Tax requirements
68. The establishment of a company in Greece involves registration with the Tax Registry. All taxpayers receive a tax identification number (TIN). Registration with the tax authorities must be carried out prior to the commencement of activities. In addition, companies and individuals are required to show their TIN to open a bank account in Greece. 69. In order to obtain a TIN, the companys representative must lodge a number of forms and documents, including a copy of the companys constitutive

documents (articles of association, act of incorporation etc.) (Ministerial Decision 1070576/DM/POL.1102/14 July 2005). LLCs, in particular, must lodge Form M8: Declaration of Members of Non-Natural Person, providing details of their members, their participation share and type of participation. SAs are not required to lodge Form M8. Notwithstanding the above, the names of an SAs founders are included in its articles of association. 70. Moreover, any founder/partner of an LLC, resident in Greece or abroad, must obtain a TIN (Form M8). Shareholders of SAs or SCs, whether natural or legal persons, are required to obtain a TIN only if they are also members of the companys Board of Directors (Form M7). 71. With the establishment of the One-Stop Shop, the notary responsible for drawing up the LLCs or SAs articles of incorporation can proceed with tax registration. Previously, the companys representatives had to lodge all the documents and forms at the local tax office. Moreover, the One-Stop Shop made it possible for the tax authorities to have a centralised database of all relevant taxpayer information. For the registrations which occurred before the 4 April 2011 launch of the One-Stop Shop, the Ministry of Finance also has access to the data contained in the databases of each of Greeces 108 tax offices. By 2013, with the launch of the new tax information system (the new TAXIS system), all data in the tax offices databases will be migrated to the centralised system. 72. Shipping companies must register with the competent tax office for shipping located in Piraeus. As informed by the Greek authorities, the documents and files to be filed are similar to the ones established for SAs. 73. The local tax offices conduct inspections to verify the existence of the registered office informed by the taxpayers (Ministerial Decision POL 1102/2005 Art. 7). In addition, a new risk profiling system has been developed and this is used to direct the local tax offices audit programs. It is now possible to link information provided by different taxpayers (e.g. the Greek authorities can link the TIN of a legal entity with the TINs of its shareholders/members). Inspections are also carried out when a company ceases operations. 74. Companies are required to inform the Ministry of Finance of any change in their registered information, including changes in ownership for LLCs and changes in representatives for SAs within 30 days (Decision 1070576/2627/DM/POL1102/2005 Art. 5(1)). 75. The Greek tax register keeps information on taxpayers including the declarations for starting business and any subsequent change, together with the documentation submitted by taxpayers. If a declaration for the cessation of business has been filed, the taxpayer information is still kept for three years after the audit has been completed and is digitally stored (Presidential Decree 276/2000 Art. 9).
76. All companies that are tax residents in Greece are required to file tax returns (Income Tax Code - ITC Art. 101). Tax returns must be filed within 4 months and 10 days from the end of the financial year (ITC Art. 107, as amended by Law 2753/1999). Tax returns are filed electronically. LLCs must provide updates on ownership information on their tax returns, whereas SAs and SCs are only required to provide information on their representatives. Pursuant to Article 66 of the ITC, the local tax office must check the 77. accuracy of the tax returns submitted by taxpayers and conduct investigations concerning the taxpayers who were required to but did not submit tax returns. The Greek authorities confirmed that those audit powers are exercised in practice. In 2012, 22 170 ordinary audits and 42 087 predictive audits were conducted and 6 000 predictive audits were conducted in 2012 up to March (data of ordinary audits in 2012 was not available). No statistics concerning penalties applied or rate of compliance were supplied. 78. Article 79 of the ITC requires that shareholders appear in person or through a proxy to cash dividend coupons. Moreover, individuals and legal entities are required to include in their tax returns a statement of proceeds from dividends or profits received from domestic and foreign legal entities (Decision POL1040/2001 Art. 4, Form E1 tax return for individuals, and Form E5 tax return for certain legal entities). 79. Any transfer of shares not traded on the stock exchange must be effected by means of: (i) a notarial deed; or (ii) a private transfer agreement authenticated by the head of the local tax office (ITC Art. 79). Pursuant to Circular POL 1169/1997, the notarial deed or the private transfer agreement must include the name, address and TIN of buyer and seller. If either the buyer or seller are foreign residents, the transfer instrument must note the foreign tax authority with which this person files a tax return (Art. 1(b)). In addition, there should be reference to the taxes paid and the document for the payment of the taxes. Circular POL 1169/1997 addresses the transfer of shares of SAs. The Greek authorities advised that the same rules apply to SCs, except in relation to the payment of taxes as the transfer of SCs shares is not a taxable event. Transfers of shares traded in the stock exchange must be registered in the Dematerialized Securities System (Law 2190/1920 Art. 8b7), which is further described in section A.1.2 of this report.
Foreign companies
80. If a company incorporated outside Greece has its place of effective management in Greece, it is a de facto considered a Greek entity and is taxed, as a Greek tax resident, on worldwide income. Greek tax law does not provide for a definition of residency, the tax residence of a company or partnership is determined on the basis of the location of its legal seat, as provided

in the Greek Civil Code. Greek case law provides that legal seat of a legal entity is defined according to its place of effective management, regardless if a different legal seat may be stipulated in its articles of association (Supreme Court decisions 2/2003, 2/1999 and 461/1978). 81. Foreign companies that wish to establish a branch or agency in Greece must register with the General Commercial Registry (Law 3419/2005 Art. 1(1)). Greek laws provide specific registration requirements for foreign LLCs and foreign SAs establishing branches in Greece, although other types of companies can also set up branches or agencies in Greece: foreign LLCs: Foreign LLCs may establish a branch or agency in Greece subject to the approval of the Ministry of Development (Law 3190/1995 Art. 57). The conditions for approval are: (i) the company must have been incorporated in conformity with the laws of the State wherein its registered office is located and is in operation; (ii) the company must submit a copy of a power of attorney, ratified by the competent Greek consular authority, appointing a representative in Greece; (iii) reciprocity i.e. Greek companies must be able to establish a branch or agency in the foreign State; and foreign SAs: In order to receive approval of the establishment of a branch or agency in Greece, the foreign SA must submit to the Ministry of Development a copy (certified by the competent Greek consulate) of the power of attorney appointing its representative or agent in Greece (Law 2190/1920 Art. 50) and a copy of its articles of association (Art. 50A).
82. Upon the approval of the Ministry of Development (MOD) concerning the incorporation of the branch, the foreign company must register with the tax authority and lodge the same declarations required of domestic SA companies before the commencement of business (Circular 1102/2005). Foreign companies must lodge with the MOD additional documentation, including: (i) a document appointing a legal representative in Greece; and (ii) a certificate of good standing issued by the competent authority of the country where the foreign company has its registered seat (Law 3190/1955 Art. 58 for foreign LLCs and Law 2190/1920 Art. 50 for foreign SAs). It is not clear whether the ownership of foreign companies establishing branches or offices in Greece need to be provided. The Greek authorities advised that ownership information can be determined based on the documents filed by the entity. However, this may depend on the rules applicable in the country of incorporation. 83. Foreign companies that will operate in Greece for a short-term (e.g. companies engaged in one-off construction activities in Greece or purchasing property in Greece) are not required to registered with the MOD but they are still required to register with the tax authorities and obtain a TIN.
84. Foreign shipping companies may establish offices in Greece. Pursuant to Article 25 of Law 27/1975 those companies must have management or operation of ships over 500 gross tonnes undertaking international and not domestic voyages. The establishment licence of the office is issued by a joint ministerial decision of the MOD and Ministry of Finance, upon application of the interested party. This application contains information and documentation from the Registry of the country where the company is registered, regarding the good standing of the company, its board of directors and the personal details of its representative in Greece. Further, the companys memorandum of association is also deposited. There are currently 1 330 offices of foreign shipping companies licensed under Laws 27/1975, 2234/1994 and 3752/2009. Such offices have to submit to the tax authorities, for the purpose of tax registration, details of the volume of the Official Gazette in which their establishment permit is published and an establishment certificate from MOD identifying the companys legal representative in Greece (Circular of the Ministry of Finance POL.1040/2006). 21 It is not clear whether the ownership of foreign shipping companies establishing offices in Greece need to be provided. The Greek authorities advised that ownership information can be determined based on the documents filed by the entity. However, this may depend on the rules applicable in the country of incorporation. 85. Moreover, the Greek Code of Books and Records requires all Greek and foreign undertakings to keep books, records and statements provided by the code (Art. 2). SAs are required to keep a book of shares (Art. 7(5)). This requirement also applies to foreign SAs. 86. The Greek authorities advised that in circumstances foreign companies having their place of effective management in Greece fail register in Greece, they are considered de facto Greek general partnerships. As such, those companies would have to comply with the tax registration requirements described in section A.1.3 of this report and provide information on their owners. 87. Moreover, the Greek anti-money laundering legislation imposes on individuals and legal entities providing services, including acting or arranging for another person to act as a director or a secretary of a company, providing registered office or business address are obliged to identify their customers and the beneficial owner of their customers (as further explained in this section).
21. Emergency Law 89/67, as amended by Law 3427/2005, was adopted to regulate the establishment of offices of foreign shipping companies in Greece. The tax exemptions granted to such offices were abolished by Law 2992/2002. The current legal regime of offices of foreign shipping companies is regulated by Article 25 of Law 27/1975 as amended by Law 2234/1994.
Information held by companies

88. Greek SAs, SCs and LLCs are required to maintain registers of shareholders/members. LLCs are required to keep a book of members up to date, containing the name, address and nationality of all members, the members interest/capital and any changes occurred (Law 3190/1955 Art. 25). The book of members must be certified by the director of the local tax office where the LLC is registered. SAs, in turn, are required to keep a book of shareholders (Code of Books and Records Art. 7(5)). The book of shareholders contains information on all registered shareholders (e.g. name, address, profession, shares held, nationality) but not bearer shareholders (Law 2190/1920 Art. 8(b)(6)). 22 89. The book of shares maintained by the shipping company must contain information regarding owners of registered shares, but not the owners of bearer shares. The transfer of registered shares is effectuated by recording an entry concerning the transfer in the book of shares (Art. 7(3)). The entry must contain the full name and address of both transferor and transferee.
Information held by service providers

90. In 2008, Greece enacted Law 3691/2008 (AML Law), which provides the framework for countering money laundering and terrorism financing. The AML Law was further amended in 2010 and 2011. 23 The AML Law imposes obligations on a wide range of entities and professionals (the obligated persons) including (Art. 5): (i) credit and financial institutions; (ii) chartered accountants, audit firms, independent accountants and private auditors; (iii) tax consultants and tax consulting firms; (iii) notaries and other independent legal professionals under specific circumstances referred to in Article 5 24; and (iv) trust and company service providers.
22. 23. 24.
No obligation exists with respect to keeping of identity information of holders of bearer shares. The issuance of bearer shares is analysed in Part A.1.2 of this report. Laws 3875/2010, 3932/2011 and 3994/2011. That is when they participate, whether by acting on behalf of and for their clients in any financial or real estate transaction, or by assisting in the planning and execution of transactions for the client concerning the: i) buying and selling of real property or business entities; ii) managing of client money, securities or other assets; iii) opening or management of bank, savings or securities accounts; iv) organisation of contributions necessary for the creation, operation or management of companies; v) creation, operation or management of trusts, companies or similar structures.
91. Before providing any services to customers, obligated persons must identify their customers and the beneficial owners of corporate customers (Art. 13(1)): Standard customer due diligence measures applied by obligated persons shall comprise: (a) identifying the customer (natural or legal person) and verifying the customers identity on the basis of documents, data or information obtained from a reliable and independent source; (b) identifying, where applicable, the beneficial owner(s) of the corporate customer, updating the information and taking risk-based and adequate measures to verify his identity so that the obligated person is satisfied that it knows who the beneficial owner(s) is (are), including other natural or legal persons on behalf of whom the customer is acting (). 92. Article 13 of the AML Law also states that when the customer is acting on behalf of other persons, he should state so and, in addition to proving his own identity, prove the identity of the third party, natural or legal person, on whose behalf he is acting. In any event, obligated persons must verify whether a customer acts on behalf of another party whenever there are serious doubts about whether he is acting on his own behalf. 93. The definition of beneficial owner is consistent with the third EU Directive and requires identification of persons owning or controlling an interest of more than 25% in the customer (see Part A.3 of this report). Moreover, the BOG Decision 281/2009 and the HCMC Decision 1/506/2009 set out specific requirements with regard to the identification of legal persons, especially for companies with bearer shares, offshore companies and non profit organisations. Article 13 also requires that customer due diligence (CDD) is conducted on an ongoing basis (Art. 13(5)). 94. The CDD obligation is further elaborated in binding instructions and rules issued by the primary supervisory authorities (BOG Decision 281/2009, HCMC Decision 1/506/2009 and Ministry of Finance Decision 1051027/20340/DE-E/2010). 95. The AML Law and the instructions and rules issued by the supervisory authorities also provide for enhanced due diligence in certain situations. Notably, SAs with bearer shares are considered to be high risk customers for which enhanced CDD must be performed. The enhanced measures include requiring a declaration from the customer company certifying the beneficial owners of the company, with updates of the declaration to be provided to the institution, before any transactions are conducted. 96. In terms of record keeping, the AML Law provides that all obligated persons must (Art. 35(1)(b)) keep the authorisation documents, the photocopies of documents on the basis of which the identity of the customer was

certified and verified, and the originals or copies of the documentation of all kinds of transactions, for at least five years following the end of the business relationship or the execution of each transaction As a result, all documents related to the CDD process must equally be maintained for at least five years.
Nominees
97. The concept of nominee does not exist in Greek law, with the exception of a reference to nominees in the AML Law. As a rule, where a person purports to hold property for the benefit of a third person, that third person would have no rights under Greek law to claim the property. Consequently, the Greek authorities assume that shares issued by companies registered in Greece are in principle held by their beneficial owner, whose identity is known to (or accessible by) the company and the Greek authorities. However, there is nothing in Greek law that would prevent a person acting as a nominee shareholder in Greece. 98. Greeces AML Law deals with the concept of nominee shareholder. Trust and company service providers are obligated persons required to perform CDD whenever they are acting as or arranging for another person to act as a nominee shareholder for another person other than a company listed on a regulated market (Art. 5). Based on this provision, trust and company service providers, acting as nominees or arranging for someone to act as such, are required to identify the person for whose benefit shares are being held. Further, other obligated entities (credit and financial institutions; chartered accountants, audit firms, independent accountants and private auditors; tax consultants and tax consulting firms; notaries and other independent legal professionals under specific circumstances) must, identify their customers (Art. 13(1)). Thus, whenever any of these service providers acts as a nominee, they must identify the person for whom they act (regardless of the percentage of shares this person holds in a legal entity) and, if their customer is a legal person, must identify those persons who hold at least a 25% interest in that legal person. 99. Where a nominee is a customer of a financial institution or other service provider, the financial institution/service provider will hold information on the nominee relationship as these entities are obliged under the AML Law to identify the third party whenever a customer is acting on behalf of another person (Art. 13). Nominees not acting by way of business are not covered by Greeces 100. AML obligations and are thus not obliged to hold information on the persons for whom they act. It is not clear whether non-professional nominees, who would comprise primarily persons performing services gratuitously or in the course of a purely private non-business relationship, are significant in terms of numbers and the assets they hold. Greek authorities advise that nominee
relationships, as they are not recognised in corporate laws, are likely rare. None of the peers have reported problems requesting ownership information related to companies with nominee shareholders. Nevertheless, the impact of this on international exchange of information in practice should be monitored by Greece on an ongoing basis.
Conclusion
101. With regard to LLCs, ownership information must be provided to commercial and tax authorities upon registration and any change in members must be informed to these authorities. LLCs are also required to maintain a register of members. SAs and SCs must maintain a register of shareholders (registered shares only). Information on founders of SAs and SCs and shareholders participating general meeting are filed with the Register. Shareholders of SAs are required to inform the tax authorities when they receive dividends. Moreover, transfer of shares must be made by means of a notarial deed or an agreement registered with the tax authority. 102. Foreign companies having their place of effective management in Greece are Greek tax residents and are required to register in Greece. There is no obligation for foreign companies with registered branches in Greece to maintain ownership information in Greece. 103. AML requirements impose multiple obligations reinforcing the availability of ownership information to public authorities, including the obligation on a broad range of financial institutions and service providers to identify their customers when they act as nominee shareholders. 104. Comments received from Greeces treaty partners indicate that ownership information was available when requested.
Bearer shares (ToR A.1.2) LLCs

105. Greek LLCs are not permitted to issue bearer shares.
SAs
106. Pursuant to Law 2190/1920 (SA Law), SAs may issue either registered or bearer shares (Art. 11a). Various amendments to this law have restricted the issuance of bearer shares by companies carrying out certain types of businesses. For example, SA companies which engage in the following businesses must issue nominal shares only: banks, insurance companies, airlines, railroads, public works such as sewage, gas and electric companies,

real estate sales, investment companies, leasing and factoring companies, private schools, hospitals, professional football and basketball clubs and holding companies (Law 2190/1920 Art. 11a(2), Law 3296/2004, Law 2788/1999, Law 2693/2001, Law 542/1977 and Law 1297/1972). SAs are also restricted from issuing bearer shares if they enter into contracts with the Greek State or its divisions (Law 3310/2005 Art. 8). 107. If shares are traded in the Athens Stock Exchange (Law 2214/1994 Art. 24 and Law 2275/1994 Art. 9), they must be dematerialised or immobilised and are subject to registration at the competent securities registry according to the Dematerialized Securities System (Law 2190/1920 Art. 8b(7), Law 2396/1996 Art. 47(1)(2) and Law 3556/2007 Art. 9). Law 3556/2007 transposed into national legislation the EU Directive 2004/109/EC on the harmonsation of transparency requirements in relation to the information on issuers whose securities are admitted to trading on a regulated market. In particular, according to Articles 9 and 14 of Law 3556/2007, any shareholder acquiring or selling more than 5% of the share capital with voting rights of a listed company shall disclose the relevant acquisition or sale to the issuer and the Hellenic Capital Market Commission. The Greek authorities confirmed that 17 listed SAs have bearer shares traded in the Athens Stock Exchange. The Hellenic Capital Market Commission confirmed that it is always able to have access to ownership information for listed SAs, regardless of the type of shares, since both registered and bearer shares are registered in the Dematerialized Securities System (Law 2396/1996 Art. 47(1) and (2)). 108. According to the SA Law (Art. 8b(5)), ownership of bearer shares is transferred according to the provisions of the Civil Code on the transfer of movable assets. The Civil Code merely requires that the possession of a moveable asset is transferred from owner to acquirer with the agreement of both to the effect that the ownership has been transmitted (Art. 1034). Notwithstanding the above, additional requirements for the transfer of bearer shares are provided in the Income Tax Code (ITC). 109. Pursuant to the ITC and Circular POL 1169/1997, any transfer of shares not traded in the stock exchange, including bearer shares, must be effected by means of: (i) a notarial deed; or (ii) a private transfer agreement authenticated by the head of the local tax office (Art. 79). The notarial deed or private agreement must indicate the name, address and TIN of buyer and seller (Law 3190/1955 Art. 28(3) and Circular POL 1169/1997). If the buyer or seller are foreign residents, the deed/agreement must indicate the foreign tax authority with which this person files a tax return (Circular POL 1169/1997 Art. 1(b)). There is no confidentiality limiting access to these deeds/agreements and the Greek tax authorities can access them. Notaries must send a copy of all deeds to the relevant local tax office (Law 1587/1950, Art. 14). The Greek authorities confirmed that in practice most transfers of shares take
place by means of private agreements (authenticated by the local tax office), as notarial deeds are costly. 110. Moreover, if a holder of bearer shares wishes to exercise any of its shareholder rights, including receiving dividends or participating in general meetings of the company, s/he must identify him or herself (ITC Art. 79 and Law 2190/1920 Art. 28). More specifically, holders of bearer shares must, when cashing dividend coupons, present a statement to the company where (s)he declares (s)he is the owner or the beneficial owner of the shares (ITC Art. 79(2)). This statement must be sent to the chief of the local tax office where the SA within two months from the end of the calendar year (ITC Art. 79(2)). In addition, an individual holding shares, including bearer shares, and receiving dividends must file, as part of his or her tax return, a statement of proceeds from dividends (Decision POL 1040/2001). 111. Service providers subject to AML are required to identify owners of bearer shares in the course of conducting customer due diligence (see below). 112. The Greek authorities estimate that approximately 33% of Greek SAs may issue bearer shares, based on analysis of articles of association conducted by the commercial registry. Greece has no information available on how many companies have issued bearer shares or how many of those shares are currently in circulation. The Greek authorities confirmed that SAs in Greece are often used in family-owned enterprises and the usage of bearer shares is not a feature, even if the articles of associations so allow. Moreover, they have confirmed that there haved been no instances where the holder of a bearer share could not be identified.
Shipping companies
113. Shipping companies may issue both registered and bearer shares (Law 959/1979 Art. 7(1)). 114. The holders of bearer shares can be identified in the following cases: if they attend a general meeting, as they have to deposit their shares in a bank, producing a receipt for this deposit (Law 959/1979 Art. 24), and sign the relevant minutes (Law 959/1979 Art. 33); similar to shareholders of SAs, if they cash dividend coupons, they must present a statement to the company where (s)he declares (s)he is the owner or the beneficial owner of the shares (ITC Art. 79(2)); similar to shareholders of SAs, if they transfer their shares, as the transfer of shares must be effected by means of: (i) a notarial deed; or (ii) a private transfer agreement authenticated by the director of the shipping tax office located in Piraeus (ITC Art. 79(4));

service providers subject to AML are required to identify owners of bearer shares in the course of conducting customer due diligence (see below). if the shipping company is listed on the Athens Stock Exchange, as the shares are placed in the Dematerialized Securities System (see section on SAs above).
115. The proceeds from the transfer of shares of shipping companies are not subject to taxation (Circular of the Minister of Finance 1012084/10088/ POL.1085/1998); however, they are still subject to the authentication by the director of the Piraeus tax office (ITC Art. 79(4)). The Greek authorities advised that the tax office for shipping located in Piraeus has specified the form of the tax return and accompanying documentation concerning the transfer of shares. It must be informed the name, address, TIN of seller and buyer, details on the shipping companies and the shares being transferred. The documentation includes copy of the companys balance sheet, last page of the book of revenues and expenses.
AML law
116. As indicated previously in Part A.1.1 of this report, under the Greek AML Law, all financial institutions and a wide range of service providers are obliged to conduct CDD for all their customers. Importantly, the AML Law and the instructions and rules issued by the supervisory authorities 25 also provide for enhanced due diligence in certain situations. Notably, SAs with bearer shares are considered to be high risk customers for which enhanced CDD must be performed. The enhanced measures include requiring a declaration from the customer company certifying the beneficial owners of the company (those who hold at least a 25% interest in the company), with updates of the declaration to be provided to the institution, before any transactions are conducted.
Conclusion
117. Bearer shares may be issued by SAs and shipping companies. There are many instances where the holders of bearer shares in SAs and SCs must be identified, including all cases where such shares are transferred, though these do not ensure the availability of information on the identity of persons holding bearer shares in every circumstance. The Greek authorities should ensure that mechanisms are in place for the identification of the owners of all bearer shares in all cases.
25. See in particular BOG Decision 281/2009, HCMC Decision 1/506/2009 and Ministry of Finance Decision 1051027/20340/DE-E/2010.
Partnerships (ToR A.1.3)

118. In Greece, partnerships are deemed to be personal companies that may or may not have legal personality. Partnerships are regulated by the Code of Commerce (CoC) or the Civil Code depending on their type. The Greek CoC provides for the following types of partnerships: general partnership, limited partnership and silent partnership (Arts.18-50). The CoC also establishes rules on limited partnership by shares; however, according to the Greek authorities, this type of partnership has not been implemented in practice. Civil law partnerships are personal companies without legal personality governed by Civil Code (Arts.741-784). 119. The types of partnerships and their main characteristics are described below: general partnership (omorrythmi etairia): General partnerships consist of at least two partners whose liability is unlimited (CoC Arts.20-22). In the absence of agreement to the contrary, all partners normally participate in management and partners share profits and losses. There are also mandatory requirements concerning the joint and unlimited liability of partners, the authority of partners to bind the partnership to obligations within its apparent scope, the partners fiduciary duty and their power to dissolve the partnership. There is no minimum capital requirement; limited partnership (eterorrythmi etairia): Limited partnerships consists of one or more partners whose liability is unlimited (general partners) and one or more partners whose liability is restricted to their contributions (limited partners) (CoC Arts.23-28). General partners are responsible for management whilst limited partners are typically investors. If a limited partner becomes involved in management or if the partners name is part of the partnerships name he will then become jointly and severally unlimitedly liable for any debts, along with the general partners; partnership limited by shares: Under this type of partnership, the invested capital may be divided into shares, as with companies limited by shares (CoC Art. 38). General provisions on limited partnerships also apply to the partnership limited by shares. The registration and publicity requirements, however, are similar to those for limited liability companies; and civil partnership: Regulated by the Civil Code, civil partnerships may be established for profit or non-profit purposes (Civil Code Arts.741-784). Civil partnerships are established by means of a contract between two or more persons who bind themselves reciprocally. They may or may not have legal personality. Partners contributions

may consist of their work, cash, or of other things as well as of any other performance. Unless provided in contrary in the partnership agreement, all partners participate in the management. In order to acquire legal personality, a civil partnership has to undergo the same registration as a general partnership. Greece also allows for the creation of silent partnership (afanis etairia). 120. A silent partnership is a commercial partnership without legal personality created by an informal agreement between at least two persons, one being a silent partner and the other a disclosed partner (CoC Arts.47 to 50). The liability of silent partners is limited to the amount of their contribution, whilst that of active partners is unlimited. For third parties only the disclosed partner exists. The disclosed partner is thus effectively a sole trader. Partnership rights and assets are acquired in the name of the disclosed partner. Profits are shared by all partners, and the silent partner has only a contractual claim on material assets, which belong to the disclosed partner. The partnership is, however, a taxable entity in Greece and is required to file tax returns identifying all partners (Form E5) similar to other partnerships in Greece (see below) 121. There are also European Economic Interest Groupings (EEIGs) (Council Regulation (EEC) No. 2137/85 of 25 July 1985 on the European Economic Interest Grouping), a form of association between companies and other legal bodies, firms or individuals from different EU countries who operate together across national frontiers. An EEIG must be registered in the EU State in which it has its official address by filing the EEIG contract at the appropriate registry. In Greece, the appropriate registry is the GCR. As part of registration, EEIGs must undergo the same registration procedures as general partnerships and limited partnerships and provide information on their general partners. The regulations governing EEIGs apply across all EU member States and are not specific to Greece. These ensure the availability of ownership information for the EEIGs. As at 9 May 2012, there were 11 EEIGs registered in Greece.
Information held by government authorities Registration

122. In order to acquire legal personality, partnerships must be registered. The Commercial Code requires that a summary of the partnership agreement is provided to the Registrar containing the numbers and surnames, the quality and the residence of the partners, but not the limited partners (Art. 43). 123. Since 4 April 2011, general partnerships and limited partnerships must register via the One-Stop Shop (covering both commercial and tax registration) and information concerning their partners is thus contained in the General Commercial Registry (Law 3419/2005, Law 3853/2010 and Decision
K1-802/2011). General partnerships and limited partnerships must provide information on their general partners upon registration and update this information in the same fashion as LLCs, as described in Part A.1.1 of this report. In addition, the partnership agreement, submitted as part of registration, must contain the names and addresses of all partners (Law 4072/2012 Art. 273). Any changes in partners must be made through a change in the partnership agreement (except limited partners). Changes must be informed to the GCR within 15 days (Law 3419/2005 and CoC Arts.42 and 48). 124. Before 4 April 2011, general partnerships and limited partnerships were required to lodge a copy of the partnership agreement with the court of first instance of the prefecture where the partnership seat was located (CoC Arts. 42 and 48). Information on the partnership, including the identification of the general partners, was transcribed in the courts book and any amendments to the partnership agreement was informed to the court of first instance. By late in 2012, the data the courts of first instance maintain on partnership will be migrated to the General Commercial Registry. 125. Civil partnerships are still subject to registration in the court of first instance as they are not yet incorporated in the One-Stop Shop process. Civil partnerships must provide information on their partners, including their name, address, nationality and TIN. 126. Partnerships limited by shares are subject to the same registration requirements applicable to limited liability companies (LLCs). That is, a copy of the partnership agreement must be deposited by the public notary (or any member or administrator of the partnership limited by shares) with the secretary of the court of first instance where the partnership limited by shares has its registered office (seat). However, there are very few of those partnerships in practice. 127. As at February 2012, there were 117 570 general partnerships, 33 623 limited partnerships, 6 483 civil partnerships and 44 partnerships limited by shares registered in Greece. As at 9 May 2012, there were 11 EEIGs registered in Greece.
Tax requirements
128. All partnerships must be registered with the tax administration (Ministerial Decision 1027411/842/DM/26 February 1998, as amended by Ministerial Decision 1040439/972/DM/9 May 2002). Partnerships must fill in Form M8, including details of all partners, their participation rates and type. For general and limited partnerships, as of 4 April 2011, the tax registration is made via the One-Stop Shop. For the other types of partnerships (as well as for general and limited partnerships incorporated before 4 April 2011) registration with the local tax office is required within 30 days of settling

the partnership agreement and before starting business (Ministerial Decision 1080576/2627/DM/POL 1102/2005). 129. Any amendments to the partnership agreement, including change of partners, must be informed to the General Commercial Registry (Law 3419/2005 Art. 9(1)) or the local tax office within 30 days (Art. 5 Ministerial Decision 1080576/2627/DM/POL. 1102/14 July 2005). The tax administration retains the following data in its physical archive and also in electronic form: (i) the partnership name and registered office(s); (ii) activities, name and address of partners; (iii) name and address of managers or legal representatives; and (iv) information concerning the incorporation of the partnership. The tax administration keeps information on taxpayers for perpetuity. According to the Greek authorities, files and data have never been destroyed or deleted. 130. Partnerships are also obliged to file tax returns, since they pay income tax (Law 2238/1994 Arts.2(4) and 10(1), ITC Art. 64). Partners identity information must be provided in the tax returns (Form E5) as required under Circular 1053/20011. Moreover, individuals that are partners in general partnerships or limited partnerships must indicate the amounts received from the partnership in their tax returns. They must also include a copy of the income tax return filed by the partnership (Decision D12A/677/EX2010/ POL1040). Legal entities that are partners in partnerships are similarly required to disclose the amounts received and the identity of the partnership in their tax returns (Form E5). 131. Greek branches of foreign partnerships are also required to file Form E5 and disclose the identity of their partners (Decision 1113/2011 Art. 4). Pursuant to Article 66 of the ITC, the local tax office must check the 132. accuracy of the tax returns submitted by the taxpayers as well as conduct investigations concerning the taxpayers who were required to but did not submit tax returns. The Greek authorities confirmed that those audit powers are exercised in practice.
Foreign partnerships
133. Foreign partnerships that wish to perform business activities in Greece must register a branch in Greece. Foreign partnerships in the form of general partnerships or limited partnerships must register with the GCR (Decision POL.1081/18-4-2011 for the implementation of Ministerial Decision K1-802/23-3-2011). Foreign partnerships wishing to establish branches in Greece must also register with the local tax office and obtain TINs. For tax registration, the branches must provide documents including (Ministerial Decision 1070576/2627/DM/POL 1102/14-7-2000): (i) partnership agreement; (ii) power of attorney appointing the legal representative or agent; and (iii) certificate of good standing, issued by the competent authority of the country where the
partnership is established. There is no specific requirements to identify all partners upon registration; however the Greek authorities advised that they expect the partnership agreement will always contain this information and that foreign partnerships are required to file tax returns and identify partners in those returns.
Information held by partnerships

134. There are no specific legal provisions requiring partnerships to keep information on their partners. However, partnerships are required to provide identity information on their partners as part of their tax returns, they are implicitly required to have this information available to comply with their tax filing obligations.

135. As indicated previously in Part A.1.1, under the Greek AML Law, all financial institutions and a wide range of service providers (obligated persons) are obliged to conduct CDD for all their customers. As a result, when a person commences a relationship on behalf of a partnership with one of the obligated persons, the CDD processes will result in the obligated person obtaining information on the partnership. As the AML Law allows for identification of those persons who own or control at least 25% of the entity, it is not clear that partners with less than a 25% interest in the partnership would always be identified by the obligated persons.
Conclusion
136. From a legal perspective, the Greek system ensures through multiple sources of information, and in particular the information maintained by the General Commercial Registry, the court of first instance and the local tax offices, the availability of up-to-date information on the ownership of partnerships. Greeces peers seem not to have requested information on partnerships in years 2007-2009.
Trusts (ToR A.1.4)

137. The concept of a trust does not exist under Greek Law and Greece has not signed the Hague Convention on the Law of Trusts. 26 Moreover, there are no other legal arrangements similar to trusts that exist in Greece. Notwithstanding the above, there are no obstacles for a Greek resident to be a trustee of a foreign trust. 27 A reference to trusts is included in the Greek AML
26. 27. www.hcch.net/index_en.php?act=conventions.status&cid=59. This right arises from the constitutional principle of the economic freedom. Specifically,

Law however. The Greek tax authorities have advised that they are not aware of cases where Greek-resident individuals or legal entities act as trustees. The concept of fiduciary does exist in Greece but only in inheritance 138. law, and not in the broader sense of management of assets. The Greek tax law neither deals with trusts and nor contains specific 139. provisions on the taxation of the assets or income derived through foreign trusts with a link to Greece. 140. Greece taxes its residents on their worldwide income (ITC Arts.2 and 3, Law 3943/2011 Art. 12). As such, if a person who is tax resident in Greece performs any business activity, including, holding assets under a fiduciary relationship to the benefit of a foreign trust and receives compensation for performing such activities, this person is liable to tax in Greece. Consequently, a Greek resident who is a trustee/administrator of a foreign trust is required to declare any income s/he derived from such business whether arising from domestic or foreign sources. As regards trust income, it is unclear how this is taxed in Greece and the issue does not appear to have arisen in practice. The Greek AML Law deals with trusts and includes any natural or legal person providing services as a trustee among the obligated persons who must conduct customer due diligence (Arts.5(1) and 13(1)).
Information held by trustees

141. Under the AML Law, any natural or legal person providing services as a trustee is an obligated person (Art. 5(1)). Trustee service providers are required to identify their customers and any beneficial owners of corporate customers (Art. 13(1)). The AML Law defines beneficial owner of legal arrangements such as trusts as follows: where the future beneficiaries have already been determined, the natural person(s) who is the beneficiary of 25% or more of the property of a legal arrangement or entity; where the individuals that benefit from the legal arrangement or entity have yet to be determined, the class of persons in whose main interest the legal arrangement or entity is set up or operates; and the natural person(s) who exercises control over 25% or more of the property of a legal arrangement or entity.
the Constitution of Greece states in Article 5(1) that all persons shall have the right to develop freely their personality and to participate in the social, economic and political life of the country, insofar as they do not infringe the rights of others or violate the Constitution and the good usages. The corollary of this n is also provided in Article 361 of the Civil Code on the principle of freedom of contract.
142. As a result, trustees are required to identify the settlors and those beneficiaries who have at least a 25% interest in the trust.

143. As indicated previously in Part A.1.1, under the Greek AML Law, all financial institutions and a wide range of service providers are obliged to conduct CDD for all their customers. When the customer is acting on behalf of another person, s/he should state so and, in addition to proving his/her own identity, prove the identity of the third party, natural or legal person, on whose behalf he is acting (Art. 13). In any event, obligated persons must verify whether a customer acts on behalf of another party whenever there are serious doubts about whether he is acting on his own behalf. Thus, where a trustee is a customer of a financial institution or other service provider, the financial institution/service provider will need to look behind this relationship. 144. Importantly, Paragraph 5.15.5 of BOG Decision 281/2009, defines trusts as high-risk customers and details the enhanced CDD to be conducted. Institutions supervised by the BOG (all credit institutions and some types of financial institutions, including leasing companies, factoring companies and bureaux de change) must: (i) verify the name and date of establishment, the identities of trustors, trustees and beneficial owners, the nature, objects and activities of the trust, as well as the source of its funds; (ii) obtain copies of the establishing documents of the trust and any other necessary information on the beneficial owners; and (iii) keep the relevant data and information in the customers file. As the AML Law defines beneficial owners as those persons who own or control at least 25% of the entity, beneficiaries with less than a 25% interest in the trust may not need to be identified by the obligated persons.
Conclusion
145. The Greek AML Law includes any natural or legal person providing services as a trustee among the obligated persons to conduct customer due diligence. As a result of the CDD obligations, a professional acting as a trustee of a foreign trust maintains information identifying the settlor and those beneficiaries who have at least a 25% interest in the trust.
Foundations (ToR A.1.5)

146. Foundations in Greece are self-governing organisations created by disposition of assets under a deed of establishment made inter vivos or under a will, for the pursuit of a certain purpose (Civil Code Art. 108). An act inter vivos must be embodied in a notarial deed (Art. 108). Foundations acquire legal personality after the publication of the decree approving their constitution (Art. 109).

147. Although the Civil Code does not specify a purpose or category of purposes based on which a foundation could be set up, the Greek authorities indicated that, in practice, all foundations in Greece need to pursue a purpose that is beneficial for society. The incorporation of foundations depends on government approval and foundations having as purpose e.g. the transfer assets within a family would not be granted such approval. 148. In addition to the Civil Code provisions, Article 109 of the Greek Constitution and Necessity Law 2039/1939 specifically deals with public benefit foundations. In practice, the Greek authorities indicate these provisions apply to all foundations in Greece as all of them have a public benefit purpose. Public benefit is defined in Law 2039/1939 as in contrast with private purpose, any state-linked, religious, benevolent or beneficial-for the public, in general, purpose in whole or in part (Art. 1). Foundations receive tax exemptions and must be registered at and supervised by the Ministry of Finance. 149. As of December 2011, there were approximately 800 foundations in Greece (all for public benefit). 150. The foundations deed of incorporation, drawn up by a notary, contains the names of the members of the foundation council and is to be provided for registration. Foundations acquire legal personality after the publication of the decree approving their constitution (Civil Code Art. 109). The law does not require a minimum capital but the deed of foundation will only be approved if the foundation has an endowment proportionate to its purpose.
Information held by government authorities Registration

151. Foundations acquire legal personality once they receive State approval (Civil Code Arts.109 and 112). The foundations constitutive act and statutes must be provided to the relevant competent Ministry (Necessity Law 2039/1939 Art. 98(2)). The competent Ministries are determined based on the purpose of the foundation in addition to the Ministry of Finance which oversees all foundations, foundations with a cultural purpose are supervised by the Ministry of Culture, foundations with a medical purpose are supervised by the Ministry of Health etc. The relevant Ministry then recommends that approval be granted and State approval is granted by publication of a Presidential Decree, published in the Official Gazette, together with the foundations constitutive act and statutes. 152. The Civil Code requires that the deed of constitution of the foundation details the scheme for its organisation (Art. 110). The Greek authorities indicate that foundations will only be granted State approval if the names of the founders, beneficiaries and council members are contained in the charter/
statutes and also, any changes to the beneficiaries of the foundation or members of the foundation council must be made through an amendment to the statutes which is also subject to State approval.
Tax law
153. Public benefit foundations receive some tax exemptions and must register with the Ministry of Finance (Necessity Law 2039/1939 Art. 154). The Ministry of Finance has a department dedicated to foundations, the Directorate for Bequests and Foundations, which maintains a register of public benefit foundations and supervises them. Public benefit foundations receive a TIN and are required to file annual tax returns (ITC Art. 101(2)). Records are kept in perpetuity by the Ministry of Finance.
Information held by foundations

154. Royal Decree 20/1939 requires that some records are kept, including: (i) a meeting minutes book; and (ii) special books in regard to each specific purpose of the bequest.
Information maintained by service providers

155. As indicated previously in Part A.1.1, under the Greek AML Law, all financial institutions and a wide range of service providers, including notaries, are obliged to conduct CDD for all their customers. Before providing any services to customers, obligated entities must identify their customers and the beneficial owners of corporate customers (Art. 13(1)). As the AML Law defines beneficial owners as those persons who own or control at least 25% of the entity, it is not clear that all foundation council members or beneficiaries would need to be identified under the AML Law. 156. In addition, when a customer is acting on behalf of other persons, he or she should state so and, in addition to proving his or her own identity, prove the identity of the third party, natural or legal person, on whose behalf he is acting (AML Law Art. 13). In any event, obligated persons must verify whether a customer acts on behalf of another party whenever there are serious doubts about whether he or she is acting on his or her own behalf.
Conclusion
157. Considering the nature of foundations operating in Greece only for public benefit and the need for State approval, these entities are not a concern for the Global Forums work. The requirements imposed on foundations by the Greek legislation ensure the availability of information on the

founders, council members and beneficiaries of foundations. It appears from comments received from Greeces treaty partners in international exchange of information in tax matters that there has been no instance since 2007 where those partners requested Greece to provide information on foundations.
Other relevant entities or arrangements

158. Only non-profit organisations may be established in Greece in the form of associations. The Civil Code provides that an association of persons pursuing a non-profitable purpose acquires legal personality by means of registration in the public register of associations kept at the court of first instance in the district where it is situated (Art. 78). For specific types of associations, there is a legal requirement to keep a registry of members authenticated by the court of first instance of the district of which the association has its seat (or by another supervising authority, such as the prefecture). This is the case, for instance, of consumer associations governed by Law 2251/1994 or sports associations governed by Law 2725/1999. In practice, according to the Greek authorities, all associations keep record of all their members in order to check the payment of their annual financial contributions.
Enforcement provisions to ensure availability of information (ToR A.1.6) Corporate law

159. Legal entities (companies, partnerships, foundations and associations) in Greece acquire legal personality only upon the completion of registration requirements (Law 3419/2012 Art. 15, Civil Code Arts.78, 109 and 112, Law 959/1979 Arts.2 and 6). Similarly, any change in ownership of Greek legal entities is only concluded when all registration requirements are met. As a result, no rights e.g. limitation of liability, transfer of ownership arise for the legal entity before registration is completed. 160. Companies (SAs and LLCs) and partnerships (general and limited partnerships) registered with the GCR are subject to administrative fines ranging from EUR 600 to EUR 30 000 if they fail to comply with their registration obligations (Law 3419/2005 Art. 17). The GCR authority must take into account the gravity and frequency of the entitys failure when defining the amount of the penalty. 161. If an LLC fails to maintain a book of members, the penalty specified in Article 458 of the Criminal Code 28 is applicable (Law 3190/1955 Art. 60(8)). Neither the SA Law (Law 2190/1920) nor the Shipping Companies Law (Law
28. This provision was not reviewed by the assessment team.
959/79) provides for penalties in case a SA or a shipping company fails to maintain a book of shareholders. However, for SAs a similar requirement is provided in the CBR, for which a penalty is established (see section on Tax Law obligations below). 162. If an LLC administrator fails to perform the registration or publication requirements established in Law 3190/1955, he or she is subject the penalty specified in Article 458 of the Criminal Code (Art. 60). The same penalty applies to anyone who transacts as a representative of a foreign company with limited liability which has not been granted the establishment permission (Law 3190/1955 Art. 60).
Tax law
163. If taxpayers (companies, partnerships etc.) fail to provide accurate information for purposes of obtaining a TIN, they will be subject to, upon conviction, to a penalty ranging from EUR 117 to EUR 1 170 (Law 2523/1997 Art. 4(1) and Decision 1027411/842/DM/1998 Art. 9). Penalties are imposed per violation. 164. If an SA fails to keep a book of shares pursuant to the CBR (Art. 7(5)), it is subject to penalties ranging from EUR 900 to EUR 1 200 (Law 2523/1997 Art. 5). Fines are applied per individual infringement and are limited to: (i) 15 times the amount of the individual sanction for first time infractions; (ii) 30 times the individual sanction for first recurrence; (iii) no limitation on the amount of the fine for the second recurrence onwards (Law 2523/1997 Art. 5(9)). The Greek authorities confirmed, however, that the penalties provided in Law 2523/1997 would also apply to shipping companies. 165. The Income Tax Code imposes a penalty on holders of bearer shares, who fail to file a declaration where they state they are the owners of the shares for purposes of cashing dividend payments with the tax office within two months from the end of the calendar year (Arts.79). The fine ranges from EUR 117 to 1 170 (Law 2523/1997 Art. 4). 166. If shares in a SA or a SC are transferred without: (i) a notarial deed; or (ii) a private document authenticated by the head of the competent tax office, the acquisition of share is deemed invalid and does not produce any legal effect in favour of the buyer, including in relation to the right to receive dividends, to participate in general meetings and to subsequently transfer the shares (ITC Art. 79(4)). 167. All legal entities including companies, partnerships, associations and foundations are required to submit annual tax returns (ITC Arts. 107, 101 and 64). The surcharge for late filing of a tax return is 1% of the tax due per each month of delay, with a ceiling of 60%. The surcharge for filing an inaccurate tax return is 2% of the tax due per each month of delay, with a

ceiling of 120%. The surcharge for not filing a tax return is 2.5% of the tax due per each month of delay, with a ceiling of 120% of the amount of tax due (Law 2523/1997 Arts.1 and 2(4)). If tax returns are not accurate (e.g. information is missing) but no additional tax arises, a fine may be imposed for violation of tax legislation. The fine ranges from EUR 117 to 1 170 (Law 2523/1997 Art. 4).
AML law
168. If obligated persons fail to comply with their CDD and other obligations established in the AML Law and related regulations and decisions they will be subject to one or more of the following sanctions: a fine of EUR 10 000 to EUR 1 000 000 and, in case of recidivism, a fine of EUR 50 000 to EUR 2 000 000; a fine of EUR 5 000 to EUR 50 000 leviable on the members of the institutions board of directors, the managing director, management officers or other employees. In case of recidivism, a fine of EUR 10 000 to EUR 100 000 will be imposed; for individuals, a fine of EUR 5 000 to EUR 50 000 or a fine of EUR 10 000 to EUR 100 000 in case of recidivism. Also, permanent or temporary prohibition from carrying out their business or professional activities; and for legal entities, prohibition from carrying out certain activities, establishing new branches in Greece or, for an SA, prohibition on increasing share capital. For serious and/or repeated violations, there will be final or provisional withdrawal or suspension of authorisation of the legal person for a specific time period or prohibition to carry out its business.
Conclusion
169. There is a range of sanctions available under most relevant laws to ensure that information required to be maintained or disclosed to administrative authorities is in fact maintained. The range of penalties allows for the authorities to apply a sanction proportionate to the nature and level of a breach of these laws. These penalties appear to be dissuasive enough to ensure compliance in most cases. 170. While no penalties are established in relation to shipping companies for not keeping a book of shares, that does not appear to have any adverse impact in practice. Shareholders who are not registered in the book of shares are not recognised as such by the company (Law 959/79 Art. 7(3)). Moreover, penalties do exist for shareholders that fail to report the transfer of shares to the tax authorities.
171. Greeces EOI partners have not identified cases where a request for ownership information was not responded to because the information had not been maintained in accordance with the law.
Determination and factors underlying recommendations
Phase 1 determination The element is in place, but certain aspects of the legal implementation of the element need improvement. Factors underlying recommendations There are many instances where the holders of bearer shares in socits anonymes and shipping companies must be identified, including all cases where such shares are transferred, though these do not ensure the availability of information on the identity of persons holding bearer shares in every circumstance. Foreign companies having their place of effective management in Greece are not obliged to maintain ownership information in all circumstances. There are no penalties on shipping companies for not keeping a book of shares. Recommendations Greece should take necessary measures to ensure that robust mechanisms are in place to identify the owners of bearer shares.
Greece should require foreign companies having their place of effective management in Greece to maintain information on their ownership. In so far as there are no penalties provided, Greece should introduce effective sanctions for entities where they fail to comply with requirements to maintain ownership information.
Greek trustees of foreign trusts are not Greece should ensure that information is required to identify beneficiaries who available to their competent authority that have less than 25% interest in the trust. identifies the settlor and all beneficiaries of foreign trusts administered in Greece. Phase 2 rating Partially Compliant.
A.2. Accounting records

Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements.
General requirements (ToR A.2.1)

172. The Terms of Reference sets out the standards for the maintenance of reliable accounting records and the necessary accounting record retention period. It provides that reliable accounting records should be kept for all relevant entities and arrangements. To be reliable, accounting records should: (i) correctly explain all transactions; (ii) enable the financial position of the entity or arrangement to be determined with reasonable accuracy at any time; and (iii) allow financial statements to be prepared. Accounting records should further include underlying documentation, such as invoices, contracts, etc. Accounting records need to be kept for a minimum of five years.
General requirements
173. Pursuant to Laws 2190/1920 and 3190/1955, SAs and LLCs are required to draw up annual financial statements, including: (i) a balance sheet; (ii) an income statement; (iii) an income appropriation statement; and (iv) notes to the financial statements (Law 2190/1920 Arts.42a-42d, Law 3190/1955 Art. 22). These laws specifically require that the financial statements reflect with absolute precision a true and fair view of the companys asset structure, financial position and profit or loss. Branches of foreign companies are also required to draw up financial statements according to the law of the jurisdiction governing the company (Law 2190/1920 Art. 7a). Anyone who fails to drawn up a balance sheet within the time limit spe174. cific in the companys articles of association is subject to the following penalties: for LLCs, the penalty specified in Article 458 of the Criminal Code (Law 3190/1955 Art. 60) 29; and for SAs, imprisonment, a penalty of not less than EUR 1 000 or both (Law 2190/1920 Art. 57).
175. SAs and LLCs must submit their annual financial statements to the commercial registry. If a company fails to do so for three consecutive years, the registry can go to court and request the dissolution of the company (Law 2190/1920 Arts. 48, 57 and 63(d)).
29.
The assessment team is not aware of the nature or quantum of this penalty.
176. Shipping companies are required to draw up a balance sheet or an accounting statement showing their financial position at the end of each accounting period (either 30 June or 31 December of each year) unless otherwise provided in the incorporation deed (Law 959 Art. 35). Even if the incorporation deed provides that the company is not required to periodically draw a balance sheet and other financial statements, the shipping company is still subject to the requirements to keep accounting records pursuant to the Code of Commerce and the tax laws (please see below). 177. The Code of Commerce (CoC) requires merchants to keep a book, called logbook, showing his day-to-day assets and liabilities, his commercial works, his transactional negotiations, the acceptances or endorsements and in general, everything he receives or pays for any reason whatsoever and revealing per month, the amount of his establishments expenditure (Art. 8). Merchants is defined as those who perform commercial acts and have trade as their main profession (Art. 1). The Greek authorities confirm that those requirements apply to all companies and all partnerships regulated by the CoC which carry on trading activities. No specific penalties are provided in the CoC if the logbook is not kept. 178. Public benefit foundations are required to prepare and submit to the Ministry of Finance for approval the following documents on an annual basis (Necessity Law 2039/1939 Art. 101): (i) a budget and an actual report pertaining to their income and expenses; (ii) general balance sheet of the foundations assets; (iii) all of the changes in the foundations assets during the course of the financial year. Royal Decree 20/1939, associated with Law 2039/1939, specifically requires that foundations administrators keep a book of accounts monitoring in which the income and expenses realised during the course of the accounting period shall be entered uninterruptedly by chronological order and with the appropriate accounting order. Further, specific accounts must be kept in the book for each asset. The non-submission of the above-mentioned annual accounts is subject to a fine ranging from EUR 147 to EUR 2 200 (Ministerial Decision Circular (POL) 1317/1996).
Tax requirements
179. In Greece, the obligation to prepare accounting records and financial statements is also established in the tax laws, in particular in the Code of Books and Records (CBR), approved by Presidential Decree 186/1992. The CBR requires that all domestic entities and all foreign entities (except foundations, which are only required to keep accounts specified in Necessity Law 2039/1939 described above) that are registered for tax purposes in Greece 30
30. The establishment of a company in Greece involves registration with the Tax Registry. Registration with the tax authorities must be carried out prior to the

keep books and records in their registered offices. Moreover, these legal entities are required to submit annual tax returns (ITC Arts.64 and 107). 180. The CBR establishes different categories of books (Art. 4): 31 category II books, which are kept by general and limited partnerships, civil partnerships, associations and sole proprietors; and category III books, which are kept by domestic and foreign SAs and LLCs and by the entities normally subject to Category II books if they have turnover over EUR 1.5 million or if they are engaged in the construction and sale of buildings.
181. Category II books include (Art. 6): (i) an expenses and revenues account book; and (ii) a stock inventory book. Category III books include (Art. 7): (i) double-entry accounting books applying any accounting system in accordance with the generally accepted principles of accounting; and (ii) a register of fixed assets. In addition, specific types of books are required depending on the entitys business activity - e.g. book of warehouse, book of branch. The Shipping Companies Law (Law 959/79) in combination with the 182. Code of Books and Records provides that accounting records must be kept as follows (Law 959/79, Art. 58(4)): shipping companies that are owners of ships are obligated to keep (i) Category II books, including a book of revenues and expenses; (ii) to enter and safeguard the records and vouchers of transactions provided by the Code of Fiscal Records (since replaced by the CBR): and (iii) to submit to the appropriate tax inspector all returns and tax records as required by the CBR (CBR, Art. 4(3)); and companies that manages or operate ships must keep Category III books (Art. 4(2)).
183. The sanction for not keeping books, tax records or supporting documentation required under the CBR is a fine of: (ii) EUR 600 for taxpayers required to keep Category II books; and (iii) EUR 900 for taxpayers required to keep Category III books (Law 2523/1997 Art. 5(8)(i)). Fines are applied per individual infringement and are limited to: (i) 15 times the amount of the individual sanction for first time infractions; (1) 30 times the individual sanction
commencement of activities. If a company incorporated outside Greece has its place of effective management in Greece, it is a de facto considered a Greek company and is taxed, as a Greek tax resident, on worldwide income. Upon the approval of the Ministry of Development concerning the incorporation of the branch, foreign companies (including foreign shipping companies) must register with the tax authority. Category I books have been abolished.
31.
for first recurrence; (iii) no limitation on the amount of the fine for the second recurrence onwards (Law 2523/1997 Art. 5(9)). In case the entity fails to submit relevant books and records, after being required to do so in an audit, the penalties can double and increase up to five times if the taxpayer has not provided the books and records after the second request (Law 2523/1997 Art. 5(6)). Statistics were provided in relation to penalties applied regarding the 184. failure to keep accounting records. The table below summarises the information provided (data provided by Local Tax Offices):
Statistical Data regarding penalties imposed for non compliance with the provisions of CBR Tax Years: 2009-2011 Description of infringement Non book-keeping or keeping of Books of lower category for professionals of category C Non display of Books and Records the first time after an invitation Non editing or issuing after due date of the balance sheet Non keeping of Books of category B or keeping of Books of lower category Non display of Books and Records Non facilitation of the tax audit Incomplete or inaccurate submission of Records of Article 20 par. 1 of CBR (discrepancies < 14.673 EUR) Non display of Books provided for in Article 10 par. 5 of CBR during a precautionary audit Non display of Books and Records the second and third time Inadequete keeping of any Book or statement Total (Tax Years: 2009-2011) No. of No. of Enterprises Infringements 319 328 Penalties imposed 550 974
9 439 101 3 621
9 901 104 3 695
13 148 594 182 480 2 188 329
11 669 123 86
12 178 124 86
7 947 114 78 840 54 986
602
618
1 984 060
1 493 1 230 28 683
1 714 1 270 30 018
5 721 673 802 007 32 659 057

185. Moreover, all legal entities including companies, partnerships, associations and foundations are required to submit annual tax returns (ITC Arts.107, 101 and 64). The return must be submitted by the legal entity itself, even where income is finally taxed in the hands of the partners or beneficiaries. The tax return is based on the financial results according to the financial statements of the financial year. The annual financial statements must be prepared with sufficient clarity so that the true financial position and the annual results of the company can be easily determined. The balance sheet, profit and loss account and distribution of profit table must be prepared in accordance with models provided by company law. 186. Ministerial Decision POL. 1113/17.5.2011 specifically requires that the tax returns of SAs, LLCs and foreign companies include copies of the balance sheet, profits and loss account and the operating results account. 187. Companies that manage or operate ships belonging to third parties are subject to corporate income tax and must deliver the same tax returns as SAs. Shipping Companies subject to the tonnage tax regime must file tax returns for each ship they own according to a specific form. 188. The surcharge for late filing of a tax return is 1% of the tax due per month of delay, with a ceiling of 60%. The surcharge for filing an inaccurate tax return is 2% of the tax due per month of delay, with a ceiling of 120%. The surcharge for not filing a tax return is 2.5% of the tax due per month of delay, with a ceiling of 120% (Law 2523/1997 Arts.1 and 2(4)). 189. Those who fail to file tax returns or file inaccurate income tax returns on the basis of their accounting records face criminal sanctions (Law 2523/1997 Art. 17) 32: 1 to 5 years imprisonment if the unpaid tax is up to EUR 150 000 in a financial year; and 5 to 20 years imprisonment if the unpaid tax in a financial year exceeds EUR 150 000.
32.
The criminal sanctions are imposed on the managing directors or other members of the board of directors or general directors or, if they are not present, the partners in the case of partnerships. In the case of non-resident companies, the sanctions are imposed on their managers or legal representatives. These persons (depending on the specific case and conditions) may be responsible for the payment of the tax by the legal entity (Law 2523/1997 Art. 20). If an administrative settlement or court settlement takes place, the criminal procedure concerning all the above cases is terminated, provided at least one fifth of the total tax due (including surcharges) is paid immediately (Law 2523/1997 Art. 24).
190. Where no tax return has been filed and the amount of tax exceeds EUR 3 000, the administrative court of appeal is obliged to impose certain business restrictions, such as disallowance of participation in public bids, obtaining tax clearance certificates and conclusion of contracts with the state. The imposition is revoked if an administrative settlement is reached. In the case of non-issuance of records or of issuance of false or fictitious records, the court may impose the suspension of business activity (if the false records refers to amounts exceeding EUR 235 000) (Law 2523/1997 Art 19). In certain cases, the state can block 50% of the amounts held on bank accounts, derivative and investment accounts and safe deposit boxes (Law 2523/1997 Art 14). 191. Pursuant to Article 66 of the ITC, the local tax office must check the accuracy of the tax returns submitted by the taxpayers as well as conduct investigations concerning the taxpayers who were required to but did not submit tax returns. The Greek authorities confirmed that those audit powers are routinely exercised. In 2012, 22 170 ordinary audits and 42 087 predictive audits were conducted by the Greek tax authorities and 6 000 predictive audits were conducted in 2012 up to March (data of ordinary audits in 2012 was not available). No analytical statistics concerning penalties applied or rate of compliance were supplied.
Accounting records for trusts

192. Since the concept of trusts in Greek law exists only in the context of AML laws (which establishes CDD obligations on trustees of foreign trusts), there are no provisions concerning the keeping of accounting records for trusts with Greek resident trustees or administrators under the Code of Commerce, the tax law and CBR. 193. However, the accounting obligations previously described, require trustees who act in a business capacity to keep full accounting records and underlying documents concerning their business activities. Nonetheless, it is unclear whether Greek law requires companies or individuals managing assets of third parties to maintain accounting records in relation to those assets in addition to their own accounts.
Other requirements
194. The AML Law provides that all financial institutions and other obligated persons must keep the authorisation documents, the photocopies of documents on the basis of which the identity of the customer was certified and verified, and the originals or copies of the documentation of all kinds of transactions, for a time period of at least five years following the end of the business relationship or the execution of each transaction (Art. 35(1)(b)). As

a result, all transaction records and related documents are to be maintained by obligated persons for at least five years. Documents related to the CDD process must equally be maintained for at least five years. 195. BOG Decision 281/2009 HCMC Decision 1/506/8.4.2009 detail further the transaction information to be maintained, including: data certifying the identity of the owners of an account; data certifying the identity of the beneficial owners of an account; data certifying the identity of the persons authorised to operate an account; the authorisations of natural persons of any nature; data certifying the identity of managers and legal representatives authorised to operate the account of a legal person; the original records and documentation of transactions; data on the volume and value of transactions through the account; data of all the other accounts of the account owner; the source of funds; the nature and currency of each transaction; the manner of deposit or withdrawal of funds (cash, cheques, wire transfer etc.); the identity of the person who carried out the transaction; the destination of funds; customers written instructions and authorisations; and the nature and number of the account involved in the transaction (BOG Decision 281/2009 s. 7). As a result, whenever a legal or natural person is a customer of a Greek 196. financial institution or of one of the professionals also considered obligated persons under that the AML Act, the obligated person will maintain full transaction records and underlying documentation for at least five years.
Conclusion
197. It appears from comments provided by Greeces EOI partners that accounting records are one of the most common categories of information Greece is asked to provide. Whilst on some occasions the provision of the information requested took a long time (see Part C.5 below), there seem to have been no instances where accounting information was not available in Greece. 198. Considering the record keeping requirements provided for by both the commercial laws and tax legislation as well as the annual tax returns to be submitted by companies, partnerships and foundations, as well as comments received from foreign counterparts, accounting records are to be kept by relevant entities which correctly explain all transactions, enable the financial position to be determined with reasonable accuracy at any time and allow financial statements to be prepared. However, there is a gap relating to the availability of accounting records that reflect the financial position and assets/ liabilities of a foreign trust for which has a Greek resident acting as a trustee or administrator.
Underlying documentation (ToR A.2.2)

199. Commercial laws do not specifically require underlying documentation to be kept. 200. The CBR requires that all domestic entities and all foreign entities (except foundations, which are only required to keep accounts specified in Necessity Law 2039/1939 described above) that are registered for tax purposes in Greece keep books and records in their registered offices (except for the books, records and other supporting documents of any other facilities, which shall be kept therein) (Art. 21). Moreover, Article 18(2) provides that any entry in the books must be based in the documents and records that are provided by the provisions of this Code or any other public document or data of evidence. The Greek authorities confirmed that all receipts, invoices, correspondence, contracts are captured under the scope of Articles 18 and 21 and are kept in practice. No specific regulations or guidance have been issued in this respect, but the legislation appears to be clear in this regard. 201. The sanction for not keeping supporting documentation required under the CBR is a fine of EUR 600 for taxpayers required to keep Category II books; and EUR 900 for taxpayers required to keep Category III books (Law 2523/1997 Art. 5(8)(i)). The referenced amount applies for each every 50 sheets of tax records or other supporting documentation. Fines are applied per individual infringement, as outlined previously. Public benefit foundations are required to keep documentation includ202. ing (Royal Decree 20/1939): (i) a book for incoming and outgoing documents; (ii) a collection receipt stub book bearing serial numbers; (iii) a payment order stub book bearing serial numbers; (iv) a meeting minutes book; and (iv) special books in regard to each specific purpose of the bequest (book concerning protected persons, book of scholarship holders, etc.). There is no minimum retention period for keeping accounting records. The foundation must keep all data and legal documents that are described by the above-mentioned Royal Decree at least until the application of control and after the approval of its actual report by the Ministry of Finances (Law 2039/1939 Arts 101-102). For the other items, general provisions on twenty-year prescription of claims are applied (Civil Code Art. 249).
Conclusion
203. Pursuant to the record keeping requirements provided for by tax legislation, underlying documentation is kept by relevant entities. There is, however, a gap relating to the availability of underlying documentation of a foreign trust for which there is a Greek resident acting as a trustee or administrator.
Document retention (ToR A.2.3)

204. The Code of Commerce (Art. 11) provides that commercial books must be kept for a period of 10 years. This apply to all companies and all partnerships regulated by the CoC. 205. The CBR provides that books, all electronic files containing book data and other supporting documents for book entries must be kept for the time period set under the respective tax provisions stipulating the States limitation of the right to impose any tax (Art. 21). The period established by the CBR is six years, unless an extension is provided by law. In addition, books relevant to determine income tax liability must be kept permanently (Presidential Decree 276/2000 Art. 10). 206. Legal entities that are required to keep accounting records must keep their accounting documents and underlying documentation for three years after the end of the year in which Greeces right to impose tax expires. The period according to which Greece may impose income tax is generally 10 years (or 15 years when no tax return is submitted) (ITC Art. 84(2)). In addition, books relevant to determine income tax liability must be kept permanently (Presidential Decree 276/2000 Art. 10). 207. In relation to foundations, there is no minimum retention period for keeping accounting records and underlying documentation required under the Law 2039/1939 and the Royal Decree 20/1939. The foundation must keep all data and legal documents which are described by the above mentioned Royal Decree at least until the application of control and after the approval of its actual report by the Ministry of Finance (Articles 101-102 Law 2039/1939). The Ministry of Finance maintains copies of the relevant records filed by the foundation indefinitely.
Phase 1 determination The element is in place. Factors underlying recommendations Greek legislation does not ensure that reliable accounting records or underlying documentation are kept in all circumstances for foreign trusts with Greek-resident administrators or trustees. Recommendations An obligation should be established to maintain reliable accounting records, including underlying documentation for trusts with Greek-resident administrators or trustees in all circumstances.
Phase 2 rating Compliant.
A.3. Banking information

Banking information should be available for all account-holders.
208. In 2008, Greece enacted Law 3691/2008 (the AML Law), which provides the framework for countering money laundering and terrorism financing. The AML Law was further amended in 2010 and 2011. 33 209. Various authorities are designated under the AML Law with supervisory roles (Art. 6); the Bank of Greece (BOG), the Hellenic Capital Market Commission (HCMC), the Accounting and Auditing Supervisory Commission, the Ministry of Economy and Finance (General Directorate for Tax Audits), the Gambling Control Commission, the Ministry of Justice and the Ministry of Development. The Ministry of Economy and Finance is designated the Central Co-ordinating Authority (Art. 8). 210. The AML Law imposes obligations on a wide range of entities and professionals (the obligated persons). The designated obligated persons include, inter alia, (Art. 5): (i) credit and financial institutions; (ii) chartered accountants, audit firms, independent accountants and private auditors; (iii) tax consultants and tax consulting firms; (iii) notaries and other independent legal professionals under specific circumstances referred to in article 5; and (iv) trust and company service providers.
Customer identification
211. Before providing any services to customers, obligated persons must identify their customers and the beneficial owners of corporate customers (Art. 13(1)): Standard customer due diligence measures applied by obligated persons shall comprise: (a) identifying the customer (natural or legal person) and verifying the customers identity on the basis of documents, data or information obtained from a reliable and independent source; (b) identifying, where applicable, the beneficial owner(s) of the corporate customer, updating the information and taking risk-based and adequate measures to verify his identity so that the obligated person is satisfied that it knows who the beneficial owner(s) is (are), including other natural or legal persons on behalf of whom the customer is acting ().
33.
Laws 3875/2010, 3932/2011 and 3994/2011.

212. The customer due diligence (CDD) obligation is further elaborated in binding instructions and rules issued by the primary supervisory authorities (BOG Decision 281/2009, HCMC Decision 1/506/2009 and Ministry of Finance Decision 1051027/20340/DE-E/2010).
Transaction records and record keeping

213. The AML Law provides that all obligated persons must (Art. 35(1) (b)) keep the authorisation documents, the photocopies of documents on the basis of which the identity of the customer was certified and verified, and the originals or copies of the documentation of all kinds of transactions, for a time period of at least five years following the end of the business relationship or the execution of each transaction. As a result, all transaction records and documents related to the CDD process are to be maintained by obligated persons for at least five years. 214. BOG Decision 281/2009 and HCMC Decision 1/506/2009 detail further the transaction information to be maintained. It includes: data certifying the identity of the owners of an account; data certifying the identity of the beneficial owners of an account; data certifying the identity of the persons authorised to operate an account; the authorisations of natural persons of any nature; data certifying the identity of managers and legal representatives authorised to operate the account of a legal person; the original records and documentation of transactions; data on the volume and value of transactions through the account; data of all the other accounts of the account owner; the source of funds; the nature and currency of each transaction; the manner of deposit or withdrawal of funds (cash, cheques, wire transfer etc.); the identity of the person who carried out the transaction; the destination of funds; customers written instructions and authorisations; and the nature and number of the accounts involved in the transaction (BOG Decision 281/2009 s. 7).
Implementation of these obligations

215. The three primary AML supervisory authorities the Bank of Greece, the Hellenic Capital Market Commission and the Ministry of Finance conduct both off-site and on-site monitoring to ensure obligated persons compliance with the AML Law. The supervision programs of the BOG and HCMC are well established, while the Ministry of Finances supervision of DNFBPs is relatively new. All supervisory authorities have powers under the AML Act to impose administrative sanctions, as well as escalate criminal matters. 216. The BOG supervises 57 credit institutions, 21 insurance companies providing life insurance or investment services; about 15 000 insurance intermediaries and 46 financial institutions (including payment institutions, bureaux de change, leasing companies, factoring companies and credit
companies). The BOGs off-site monitoring involves receipt of reports and information on supervised institutions from a wide range of sources. The results of this ongoing off-site monitoring help determine the on-site inspection program. The frequency and nature of on-site examination is determined by risk factors such as the institutions volume of transactions, number of customers, activities and products offered. These inspections involve very detailed requests for information and sampling activities. The BOG can apply severe sanctions on the supervised entities for non-compliance with AML/ CFT obligations. Sanctions consist of fines (ranging from EUR 10 000 to EUR 1 000 000 for legal entities and EUR 5 000 to EUR 50 000 for individuals and doubled in case of recurrence) and the prohibition to carry on a specific business (AML Law and BOG Decision 290). Compliance levels for the financial institutions are generally high. 217. The HCMC supervises 69 investment firms, 22 firms managing mutual investment funds and 94 investment intermediation firms. The HCMCs off-site monitoring program relies primarily on analysis of annual reports that supervised entities must submit replying to questions specified in Art. 10 of HCMC Decision 1/506/8.4.2009. Supervised institutions are required to appoint an external auditor to conduct an inspection of AML compliance every 3 years. In February 2006, the HCMC formed a special AML Unit. This unit conducted the first cycle of AML audits from 2006, and these resulted in imposition of corrective measures and/or fines. A second cycle of audits, conducted in 2011, found strong compliance across the sector. 218. A wide range of designated non-financial businesses and professions (DNFBPs) are supervised by the Ministry of Finance. 34 Law 3994 of July 2011 introduced the administrative sanctions which could be imposed on DNFBPs for non-compliance with AML obligations. Prior to passage of this law, the Ministry of Finance, though the local tax offices and audit centres, focussed its supervisory activities on awareness raising and provision of guidance. In 2011, local tax offices and audit centres conducted approximately 100 audits on obligated persons, looking at compliance with the obligations deriving from the AML law concurrently with tax audits on the same entities or independently. Non-complying or partially complying obligated persons have been advised to implement corrective measures. The Ministry of Finance is currently analysing the findings of these audits to determine any commonalities in non-compliance. Audits for AML compliance have also been incorporated in the National Operational Programme against Tax Evasion for the years 2012-2014.
34.
Note that DNFBPs such as company service providers are not supervised by the Bank of Greece.

219. From the comments made by Greeces EOI partners, there do not seem to have been any situations where Greece was not in a position to provide the bank information requested because it was not available.
Bank data furnished to the Ministry of Finance

220. Since October 2011, banks and other financial institutions must furnish the Greek Minister of Finance with data on active or non-active, opened or closed or used accounts, data transfers, transfers, direct debits, bank checks, credit card receipts and loans to households and businesses () and any other information necessary for the process of assessment and tax collection (Art. 82()2, as amended by Art. 32(2) of Law 3986/2011). The Ministry of Finance Decision POL.1177 of 23 August 2011 details the information to be submitted in relation to the following operations: (i) bank transfers: (ii) direct debits; (iii) cheque transactions; and (iv) transactions with payment cards. Details include code number of the bank, full name of payer, his or her TIN, amount and date of the transaction, full name of the beneficiary and his or her bank identifier code (BIC). Information must be submitted directly to the Ministry of Finance General Secretariat for Information Systems (GSIS) through a secure file transfer system via internet. Information must be submitted retrospectively to year 2009. The first submission was due on 31 October 2011. Banks must submit information on a monthly basis. The Ministry of Finance must maintain the files of six years.
Conclusion
221. The Greek AML Law provides requirements for financial institutions and DNFBPs to conduct customer due diligence and to keep records of their customers and customers transactions. As a result, information is available for all account holders, including all records pertaining to the customers, the bank accounts and transactions. The relevant supervisory authorities conduct off-site and on-site inspection programs to ensure compliance with these obligations.
Phase 1 determination The element is in place. Phase 2 rating Compliant.
COMPLIANCE WITH THE STANDARDS: ACCESS TO INFORMATION 65
B. Access to information
Overview
222. A variety of information may be needed in a tax enquiry and jurisdictions should have the authority to obtain all such information. This includes information held by banks and other financial institutions as well as information concerning the ownership of companies or the identity of interest holders in other persons or entities, such as partnerships and trusts, as well as accounting information in respect of all such entities. This section of the report examines whether Greek legal and regulatory framework gives the authorities access powers that cover all relevant people and information, and whether rights and safeguards are compatible with effective exchange of information. It also assesses the effectiveness of this framework in practice. 223. In Greece, the competent authority for exchange of information in the field of direct taxes is the Ministry of Finances Department of International Administrative Co-operation for Direct Taxes, within the Directorate of the International Economic Relations. The competent authority commonly relies on other departments of the Ministry of Finance to collect information, notably the local tax offices, the General Directorate for Tax Audits, the Financial and Economic Crime Unit and the General Secretariat of Information Systems. 224. The Ministry of Finance departments have significant information resources, including access to information in the recently established General Commercial Registry (of the Ministry of Development), databases containing tax registration information, annual information submitted by taxpayers on their tax returns, information received through automatic reporting and information on bank account interest related to the EU Council Directive 2003/48/ EC (EU Savings Directive). Therefore, the competent authority can respond to the simpler requests for exchange of information (EOI) directly by accessing information centrally available without recourse to local tax authorities. 225. The Ministry of Finance departments have broad powers to obtain bank, ownership and accounting information and have measures to compel the production of such information. Information can be accessed by various means,
66 COMPLIANCE WITH THE STANDARDS: ACCESS TO INFORMATION

including tax or commercial registers, during tax examinations and audits, visits to business premises or seizure of books and records. The ability of the Greek authorities to obtain information for international exchange of information purposes is derived from its general access powers under the Income Tax Code, Law 3296/2004 and Presidential Decree 85/2005, coupled with the authority provided by the relevant exchange of information agreements. 226. There are general statutory bank and professional secrecy provisions in place, but they do not restrict effective exchange of information. On the contrary, the Ministry of Finance authorities have powers to override secrecy provisions contained in any piece of legislation. The initiation of an audit procedure or the approval of Financial Crime Prosecutor is required in such cases. 227. The application of rights and safeguards in Greece does not restrict the scope of information that the tax authorities can obtain. Access to information requires neither the notification nor the consent of the person whose data is transmitted. There are no appeal rights in Greece available to taxpayers concerning the access or the exchange of information for tax purposes. The ability of the competent authority to obtain information is limited (in line with the international standard) where either information would disclose any trade, business, industrial, commercial or professional secret or trade process, or the disclosure of information would be contrary to public policy (ordre public). 228. Greeces institutional framework supports effective access to and provision of information requested by competent authorities of other countries. Input from a number of jurisdictions suggests that over the last three years, Greece has not had difficulties accessing information in order to respond to an EOI request.
B.1. Competent Authoritys ability to obtain and provide information

Competent authorities should have the power to obtain and provide information that is the subject of a request under an exchange of information arrangement from any person within their territorial jurisdiction who is in possession or control of such information (irrespective of any legal obligation on such person to maintain the secrecy of the information).
The Greek competent authority

229. The Directorate of International Economic Relations (DIER) of the Ministry of Finance is the designated competent authority for the negotiation and conclusion, the monitoring of the application as well as the interpretation of the international conventions for the avoidance of double taxation of income and capital and international agreements for exchange of information in the field of direct taxation (Presidential Decree 249/1998 amended by Law
3943/2011). Within the DIER, the Department of International Administrative Co-operation for Direct Taxes (Department C) is the competent authority for exchanging information in the field of direct taxes. 230. The competent authority commonly relies on other departments of the Ministry of Finance to collect information, including: (i) the General Directorate for Tax Audits; (ii) the Financial and Economic Crime Unit (SDOE); and (iii) the General Secretariat of Information Systems (GSIS). Estimates provided by the Greek competent authority indicate that, in relation to the requests received in years 2008-2010, approximately: 5% were replied directly by Department C without the involvement of other authorities; 25% information was obtained by the SDOE (e.g. bank information); 70% information was obtained by the local tax offices (e.g. detailed accounting information).
The competent authority adopts the following procedure for handling 231. EOI requests sent by the foreign competent authorities: the Greek competent authority identifies the individual or legal entity that is the object of the EOI request within the databases available (generally, the General Registry application of the TAXIS Information System, which contains taxpayer related information). Simpler EOI requests can be answered directly by Department C after consulting these databases; for more complex requests (e.g. requests for detailed accounting information, requests for bank information), the Department C officials contact, depending on the scope of the request, the local tax authorities, the SDOE or the relevant Ministry of Finance department for assistance in gathering the requested information; the authority(ies) involved in gathering the requested information assign the relevant case to one of its officials and provide relevant contact details to Department C. The competent authority monitors the open requests and liaises with the authorities involved as necessary; the local tax authority, the SDOE or tax audit directorate, as the case may be, proceeds with the audit and may contact, for instance, the taxpayer, financial institutions etc.; and after receiving the requested information, the competent authoritys officials prepare an answer to the foreign competent authority. The answer is reviewed by the Head of the Department C and the Head of the DIER.
Powers to collect information

232. The tax authorities powers to collect information are derived from several statutory provisions which grant the authorities powers to seek and obtain information by means of enquiries, inspection, search and seizure. These powers are exercised, depending on the procedure involved, by the different departments of the Ministry of Finance or the local tax offices. The powers include: the power to audit books, records and documents kept by the taxpayer (Presidential Decree 186/1992; the Code of Books and Records (CBR)). The power to seize any book, record or document, when such book, record or document gives rise to any concealment of tax. The power to search for and seizure any books, documents or other records, upon the authorisation of a prosecutor or judge (CBR Art. 36); the power to request information from other government authorities regarding any individual or legal person that is the subject of a tax audit (CBR Art. 366); the power to request information in the context of an audit, including the power to summons any person and ask such person to provide information which is necessary for facilitating the audit (Law 2238/1994; the Income Tax Code (ITC) Art. 66); the power to interrogate and arrest persons and search any means of transportation, goods, stores, warehouses, residences and other facilities, as well as the performance of special investigations. The power to freeze bank accounts or assets for safeguarding public interest or in case of financial crimes and major tax evasions, according to the established legal procedure (Law 3296/2004 Art. 30 and Presidential Decree 85/2005); and the power to access data on active or non-active, opened or closed or used accounts, data transfers, transfers, direct debits, bank checks, credit card receipts and loans to households and businesses () and any other information necessary for the process of assessment and tax collection (ITC Art. 82(2), as amended by Art. 32(2) of Law 3986/2011).
233. In most cases, the local tax offices rely on powers granted under the ITC (Art. 66) and the CBR (Art. 36). The SDOE, in turn, relies on Article 30 of Law 3296/2004 and its associated Presidential Decree as the basis for their information collection.
Bank, ownership, and identity information (ToR B.1.1) and accounting records (ToR B.1.2)
234. Accounting and ownership information is mainly held in the tax administrations registry, databases and physical files. Information on the identity of owners of entities and arrangements as well as accounting records are filed with the Greek tax authorities at the time of incorporation and any amendments must be informed to the local tax office. Local tax offices also have detailed information in their files, including information on the immovable property of taxpayers subject to their competence. Moreover, since April 2011, the Ministry of Finance has direct access to the General Commercial Register of the Ministry of Development (Law 3419/2005 and Joint Ministerial Decision K1-802/2011), where ownership information for certain companies and partnerships is available. 235. The Greek competent authority has confirmed that, even when the information is in the hands of the tax administration, the involvement of the local tax authorities is very common, as hard copies of documents (e.g. articles of association, some tax returns, and agreements with third parties) are kept locally. It is expected that by 2013 documents currently held by the local tax offices will start to become electronically available at a new centralised information system (the new TAXIS Information System). This migration of files may make it easier for the Greek competent authority to access information to reply to an EOI request in a timely manner. Whenever an EOI request is passed to a local tax office or to the SDOE 236. for them to exercise access powers, a tax audit is opened. There are basically two statutes dealing with tax audit procedures: the Code of Books and Records (CBR) and the Income Tax Code (ITC). Under the CBR, the tax auditor is granted with powers to audit all books, records and documents kept by the taxpayer (Art. 36). Pursuant to the ITC, the head of the tax office can invite any persons and request any information considered necessary to facilitate his auditing tasks (Art. 66). In addition, Law 3296/2004 provides the power to the SDOE to interrogate and arrest persons and search any means of transportation, goods, stores, warehouses, residences and other facilities (Art. 30). In most cases, as described above, reliance on other government author237. ities to access information is not necessary, as the tax administration can obtain information from its own databases or files or by asking directly to the taxpayer. Nevertheless, the tax administration can also rely on the co-operation of other government authorities, such as the Ministry of Development (information kept in the GCR) and the AML authorities (e.g. Bank of Greece and the Hellenic Capital Market Commission). 238. Input from peers indicated some delays in receiving accounting information. The Greek competent authority explained that those cases likely

refer to situations where more detailed information on accounting entries was needed, including supporting documentation (copies of invoices, agreements etc.) or when it was not possible to immediately identify the person who was object of the request based on his or her tax identification number. In order to reply to such cases, a comprehensive tax audit was required. Nevertheless, it is recommended that the Greek competent authority closely monitor the requests for information to ensure that the timeframes for providing counterparts with information, including accounting information, are as short as possible (in this regard, please refer to section C.5 of this report).
Bank information
239. In Greece, bank secrecy is a specific aspect of the professional secrecy. Greek law contains: (i) general provisions of the Civil and Criminal Codes on protection of rights, interpretation of contacts and professional secrecy (Criminal Code Art. 371 and Civil Code Arts.57, 200 and 288); and (ii) special provisions on the secrecy of bank deposits (Legislative Decree 1059/1971). 240. Pursuant to the Civil and Criminal Codes, credit institutions must refrain from disclosing to third parties details of their clients personal, economic and professional life that comes to their knowledge because of their business relationship with their clients. All employees of financial institutions are covered by the general obligation to protect client information. The breach of this professional confidence constitutes a crime and is punishable under Articles 252, 259, 263A and 371 of the Criminal Code with a pecuniary penalty or imprisonment for not more than two years. With respect to bank deposits, Legislative Decree 1059/1971 specifi241. cally states that bank deposits must be treated as confidential. The breach of this confidentiality is punishable with imprisonment for not less than six months (Art. 2). This obligation applies to all financial institutions operating in Greece, including permanent establishments of foreign banks. 242. Bank secrecy (including the secrecy of bank deposits) can be lifted by the tax authorities. There are three main procedures used to access bank information. 243. Tax inspectors in local tax offices, when verifying the accuracy of information submitted in a tax return (or if no tax return was submitted), can request a financial institution to provide any information considered necessary to facilitate his auditing tasks (ITC Art. 66 read together with Law 3943/2011 Art. 8). In order to make such request, the tax inspector must obtain prior approval from: (i) the Head of the General Directorate of Tax Audits; and (ii) the Financial Crime Prosecutor, who will draw up an authorisation of the disclosure of bank information. The Financial Crime
Prosecutors authorisation constitutes an internal document and is not published; therefore, the account holder is not informed of the Ministry of Finances access to information concerning his bank account. 244. Moreover, the SDOE has powers to lift bank secrecy pursuant to Law 3296/2004 (Art. 30(6)), Presidential Decree 85/2005 (Art. 2(3a)) and Presidential Decree 154/1997 (Art. 28(b)). Article 2(3a) of Presidential Decree 85/2005 provides that SDOE has the powers to: access to and obtain any information or record pertaining or relating to the performance of its task and the implementation of its mission following a relevant official order, being not subject to restrictions contained in provisions on secrecy 245. The main tasks of the SDOE are the disclosure and combating of financial and economic crimes, major tax evasion and smuggling, capital flow controls, control of goods and services trafficking, () correct enforcement of the provisions relating to Community and National subsidies, as well as the provisions referring to the protection of public property (Art. 30(2) of Law 3296/2004). Its tasks also include preventive monitoring on the implementation of tax laws and temporary tax audits. The access of bank information through the SDOE must be linked to one of the SDOEs tasks e.g. suspicion of tax evasion or other cases connected to the implementation of tax laws, including tax treaties. The SDOE can directly request information from financial institutions. They would normally do so if they have in their hands, for instance, the international bank account number (IBAN). As a matter of practice however, the SDOE commonly involves the Hellenic Bank Association (HBA), which directs the request to the relevant bank(s). Where it is not known which bank the persons account is located at, the SDOE involves the Bank of Greece or the HBA and they contact the banks to locate the information. There are no deadlines provided in the relevant laws; however, that allows some flexibility for dealing with urgent requests e.g. when the request is urgent a SDOE official can go in person to the bank and request urgent co-operation. 246. The ITC also grants the Greek Ministry of Finance the right to access data on active or non-active, opened or closed or used accounts, data transfers, transfers, direct debits, bank checks, credit card receipts and loans to households and businesses () and any other information necessary for the process of assessment and tax collection (Art. 82(2), as amended by Art. 32(2) of Law 3986/2011). The provision of data pursuant to this procedure does not require the notification or the consent of the person whose data is transmitted nor the authorization of the Hellenic Data Protection Authority (Art. 82(2)). This occurs by way of monthly submission of information from financial institutions to the Ministry of Finance General Secretariat for Information Systems (GSIS) (see further below).

247. Some bank information is already in the hands of the Ministry and may be provided to a foreign counterpart in answer to an EOI request without need to use access powers: the Ministry of Finance has information gathered by the Economic Police Department 35, which carries out investigations into economic crimes and is not restricted by provisions concerning tax, bank, securities or business secrecy (Law 3986/2011 Art. 32); legal and natural persons are obliged to submit information on the assets they own to the General Secretariat of Information Systems (GSIS) of Ministry of Finance (Law 3842/2010 Art. 83). Assets in this context includes immovable or movable property such as bonds, interest on bank accounts, dividends, mutual funds etc; and financial institutions must submit information on bank transfers, cheque transactions and card transactions to the Ministry of Finance (ITC Art. 82(2)). Ministry of Finance Decision POL.1177 of 23 August 2011 details the type of records and deadlines for submission. Information must be submitted directly to the Ministry of Finances GSIS through a secure file transfer system via internet. Banks must submit information on a monthly basis. The first submission was due on 31 October 2011 and information must be submitted retrospectively to year 2009. The Ministry of Finance is required to maintain the files for six years.
Use of information gathering measures absent domestic tax interest (ToR B.1.3)
248. The concept of domestic tax interest describes a situation where a contracting party can only provide information to another contracting party if it has an interest in the requested information for its own tax purposes. 249. Greece has no domestic tax interest with respect to its information gathering powers. Information gathering powers provided to Greek authorities under the ITC, the CBR, Law 3296/2004 and other legal provisions are broadly worded. They can be, and are in practice, used to respond to international requests for information regardless of whether Greece needs the information for its own domestic tax purposes or not. 250. None of Greeces partners has reported having encountered difficulties in receiving the information requested because Greece is lacking the necessary powers to collect that information.
35.
The Economic Police Department was established by Presidential Decree 9/2011.
Compulsory powers (ToR B.1.4)

251. Jurisdictions should have in place effective enforcement provisions to compel the production of information. 252. As mentioned previously, the Ministry of Finance has wide-ranging powers to collect information needed to respond to an EOI request. These powers include compulsory measures: the power to search for and seize any book, document or other record, upon the authorisation of a Prosecutor or Judge (CBR Art. 36); the power to summons any person and ask such person to provide information which is necessary for facilitating a tax audit (ITC Art. 66); the power to interrogate and arrest persons and search any means of transportation, goods, stores, warehouses, residences and other facilities, as well as the performance of special investigations (Law 3296/2004 Art. 30 and Presidential Decree 85/2005); and the power to freeze bank accounts or assets for safeguarding public interest or in case of financial crimes and major tax evasions, according to the established legal procedure (Law 3296/2004 Art. 30 and Presidential Decree 85/2005).
253. The powers to gather information granted by the ITC are also reinforced by specific sanctions established in Law 2523/1997 (Art. 4): the sanction for failure to provide information (including bank information) in the context of an audit pursuant to Article 66 is a fine ranging from EUR 1 000 to EUR 50 000; and the sanction for failure to provide information requested by the Ministry of Finance pursuant to Article 82 of the ITC is a fine from EUR 5 000 to EUR 100 000.
254. The powers to gather information granted by the CBR are reinforced by penalties established in Law 2523/1997 (Art. 5), in the nature of fines ranging from EUR 600 to EUR 4 500. 255. In addition, Law 2523/1997 establishes general fines which can be levied for violations of obligations established under tax laws, ranging from EUR 117 to EUR 1 170 (Art. 4). 256. The powers to gather information granted by Law 3296/2004 and its associated Presidential Decree 85/2005, the ITC, the CBR and others are also reinforced by criminal sanctions. Article 169 of the Criminal Code provides for the crime of disobedience, applicable when a person denies access to any

place where a legal operation must be conducted. This would apply where a person denies access to an officer of the Ministry of Finance who is exercising his access powers. Imprisonment of up to six months is imposed. 257. In addition to the specified penalties, if a taxpayer, a bank or any other person obliged to provide information fails to do so, the Ministry of Finance can request the Financial Prosecutor to order and compel the provision of information. The Greek competent authority has confirmed that it has never needed to pursue this venue to ensure compliance. In particular, Greek banks have never refused to provide bank information on their clients when requested to do so.
Secrecy provisions (ToR B.1.5)

258. As regards bank secrecy, the legal provisions reviewed above grant tax authorities the necessary powers to lift bank secrecy in order to reply to EOI requests. 259. In terms of legal professional privilege, Legislative Decree 3026/1954 (the Code of Ethics for Lawyers) imposes on lawyers the obligation to keep the discretion required by their principals on every single thing principals entrust to lawyers (Art. 49). The privilege is extremely broad and covers not only legal advice and involvement in legal proceedings, but also any, for example, consulting services provided by a lawyer or company services provided by a lawyer 36, including any documents received by the lawyer in connection with such services. It covers both independent and in-house lawyers. In addition, the Greek Criminal Code provides that lifting the legal professional privilege is a crime, even with permission of the client (Arts.233 and 371). However, when there is a court order, lawyers can reveal information 260. requested for a tax audit (ITC Art. 66). The Financial Prosecutor can obtain such a court order for access to information in civil matters as well as criminal matters. This process is commonly used when a tax inspector in a local office needs access to information held by a lawyer. Further, in 2011, Law 3943 was enacted allowing the Financial Prosecutor exercising his information gathering powers, including obtaining information from lawyers, without need for a court order (Art. 8). Certified accountants are required to maintain strict secrecy concern261. ing anything that becomes known to them in the practice of their profession, unless there is an obligation provided by law, professional standards or regulations to disclose information (Presidential Decree 226/1992 Art. 16, Regulation
36. It should be noted that lawyers in Greece are prohibited from being a representative or manager of a company (Code of Ethics for Lawyers Art. 63).
on Professional Ethics of Certified Accounts Art. 5). Similar secrecy provisions are provided for auditors in Law 3693/2008 (Art. 21), Law 3329/1955 (Art. 12) and Criminal Code (Art. 371). Certified accountants must provide information regardless of their secrecy obligations when requested to do so by the Financial Prosecutor in the course of a tax audit (Law 3943/2011 Art. 8). 262. There is no distinct profession of tax consultant or tax advisor in Greece. Commonly persons acting as tax consultants are lawyers or accountants. However, when requested to do so by the Financial Prosecutor in the course of a tax audit, accountants must provide information regardless of their secrecy obligations (Law 3943/2011 Art. 8). 263. Professional secrecy rules exist for notaries in the Notaries Code (Law 2830/2000 Art. 13), the Civil Procedure Code (PD 503/1985 Arts.400, 401) and the Criminal Procedure Code (PD 258/1986 Art. 212). Notaries in Greece draft deeds and contracts concerning, for instance, the foundation of companies, sale of assets, wills and testaments. They are required to send to the local tax offices all contracts they draft (Law 1587/1950 Art. 14). The Ministry of Justice maintains the publicly available National Registry of Moveable Assets which contains all information on moveable assets obtained from notarial deeds, submitted by notaries to the relevant Prosecutor for this purpose. Wills, testaments and any document drafted by notaries can be provided to the Ministry of Finance after an order issued by the Prosecutor at Courts of First Instance (Law 2830/2000 Art. 13). Notaries must provide information, regardless of their secrecy obligations, when requested to do so by the Financial Prosecutor in the course of a tax audit (Law 3943/2011 Art. 8). 264. There is no other professional secrecy that can be invoked when information is requested for tax purposes by revenue authorities. According to Greeces partners, there does not seem to have been any 265. case where a request for information was not answered due to secrecy provisions. The competent authority has indicated that they have on no occasion had difficulty accessing information held by lawyers, accountants, auditors or notaries.
B.2. Notification requirements and rights and safeguards

The rights and safeguards (e.g. notification, appeal rights) that apply to persons in the requested jurisdiction should be compatible with effective exchange of information.
Not unduly prevent or delay exchange of information (ToR B.2.1)

266. Greek law does not require the taxpayer to be notified about a request or the fact that information exchange takes place. Article 82 of the ITC, in particular, expressly states that the access of information with basis on this provision requires neither the notification nor the consent of the person whose data is transmitted nor the authorisation of the Hellenic Data Protection Authority. 267. Financial institutions are not authorised to inform their client before, during, or after the exchange of information has taken place. The only situation (not related to EOI) where financial institutions can inform their clients is when they have proceeded with freezing bank accounts. 268. The Greek authorities confirmed that there are no appeal rights for taxpayers or third parties concerning the access or exchange of information under a request from a foreign competent authority under an EOI instrument. 269. The Greek competent authority confirmed that there are no instances where taxpayers have filed court procedures or appealed against investigations connected to the reply to EOI requests. In addition, they confirmed that banks do not inform their clients of the disclosure of the clients information to the tax authorities whether before or after transmitting the information. 270. The peer input received for this review seems to confirm that there have not been anycases where rights and safeguards that apply to person in Greece unduly prevented or delayed effective exchange of information.
COMPLIANCE WITH THE STANDARDS: EXCHANGING INFORMATION 77
C. Exchanging Information
Overview
271. Jurisdictions generally cannot exchange information for tax purposes unless they have a legal basis or mechanisms for doing so. A jurisdictions practical capacity to effectively exchange information relies both on having adequate mechanisms in place as well as an adequate institutional framework. This section of the report assesses Greeces network of exchange of information (EOI) agreements against the standards and the adequacy of its institutional framework to achieve effective exchange of information in practice. 272. The Greek competent authority for the exchange of information is the Directorate of International Economic Relations (DIER) of the Ministry of Finance. Within the DIER, a specific department, the Department of International Administrative Co-operation for Direct Taxes (Department C), established in 2011, is responsible for exchange of information and enforcement of mutual administrative assistance in the field of direct taxes. 273. Greece has a longstanding involvement in international exchange of information in tax matters. Its first double tax conventions (DTCs) allowing for EOI on request were established with the United Kingdom and the United States in the 1950s. Currently, Greece is able to exchange information in tax matters through a broad network of bilateral treaties covering 56 jurisdictions through 55 DTCs and one tax information exchange agreement (TIEA). 54 of these 56 instruments are currently in force. Greeces EOI instruments cover its relevant partners including major trading partners as well as all EU countries and most OECD member jurisdictions. In addition, on 21 February 2012, Greece signed the multilateral Convention on Mutual Administrative Assistance in Tax Matters developed by the OECD and the Council of Europe. 37
37.
The convention has not been ratified by Greece yet.
78 COMPLIANCE WITH THE STANDARDS: EXCHANGING INFORMATION

274. As an EU member, Greece is also able to exchange information with its EU counterparts 38 under the scope of EU Council Directive 77/799/ EEC of 19 December 1977, and will soon be able to do so under EU Council Directive 2011/16/EU, which has been in force since 11 March 2011 and has to be transposed into national legislation by 1 January 2013. The articles in this new Directive are in line with the international standard. Greece is also involved in automatic exchange of information with other EU member states under Council Directive 2003/48/EC in respect of savings interest and under EU Regulations on administrative co-operation in the fields of VAT and excise. 275. Greece actively seeks to expand its exchange of information network. The Greek competent authority has recently commenced negotiations with several jurisdictions 39 to establish TIEAs and has approached others noting its desire to enter into negotiations to establish TIEAs. 40 It was noted that on some occasions the ratification of EOI arrangements by Greece can take several years. It is recommended that Greece continue its efforts to ensure the ratification of all EOI arrangements signed with counterparts expeditiously. 276. A domestic tax interest requirement does not exist in Greece and there are no restrictions in the Greek legislation as regards the authorities access to information held by banks. Notwithstanding the above, such limitations might exist in some of Greeces partner jurisdictions. Therefore,
38. The current EU members covered by this Council Directive are Austria, Belgium, Bulgaria, Cyprus*, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom. *1. Footnote by Turkey: The information in this document with reference to Cyprus relates to the southern part of the Island. There is no single authority representing both Turkish and Greek Cypriot people on the Island. Turkey recognises the Turkish Republic of Northern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of the United Nations, Turkey shall preserve its position concerning the Cyprus issue. 2. Footnote by all the European Union Member States of the OECD and the European Commission: The Republic of Cyprus is recognised by all members of the United Nations with the exception of Turkey. The information in this document relates to the area under the effective control of the Government of the Republic of Cyprus. Antigua and Barbuda, Bermuda, the Cayman Islands, the Cook Islands, Gibraltar, Grenada, Jersey, Mauritius, Saint Kitts and Nevis, Saint Lucia, San Marino and Samoa. The British Virgin Islands, the Isle of Man, the Netherlands Antilles and Panama.
39. 40.
it is recommended that Greece continues to renegotiate its EOI instruments, where relevant, to incorporate wording in line with Article 26(4) and (5) of the OECD Model Tax Convention. 277. All EOI articles in Greeces agreements contain confidentiality provisions and Greeces domestic legislation also contains relevant confidentiality provisions. These provisions apply equally to all information in the requests received as well as to responses received from counterparts. 278. Greeces agreements ensure that the contracting parties are not obliged to provide information which would disclose trade, business, industrial, commercial or professional secrets or information which is the subject of attorney client privilege or to make disclosures which would be contrary to public policy. 279. Of the 56 EOI instruments signed by Greece, three (DTCs with Austria, Estonia and Luxembourg) 41 do not provide for effective exchange of information as a result of limitations in the domestic laws of the partner jurisdictions and two (DTC with India and protocol to the DTC with Switzerland), do not allow for exchange of all foreseeably relevant information. Nonetheless, Greece will be able to exchange information to the standard with Austria, Estonia and Luxembourg when EU Council Directive 2011/16/EU of 15 February 2011 is transposed into national legislation by 1 January 2013. Moreover, once the Multilateral Convention on Mutual Administrative Assistance in Tax Matters has been ratified by Greece, it will be able to exchange information to the standard with India. A new protocol has been negotiated with Switzerland and is expected to be signed soon. 280. Regarding the effectiveness of exchange of information in practice, while international counterparts exchanging information with Greece have often commented positively on the level of the information provided by the Greek counterpart, some concerns remain regarding the ability of Greece to provide information in a timely manner. In general, the peer inputs suggest that Greece has been able to respond to the vast majority of requests it receives in a comprehensive manner, notwithstanding Greeces difficulty in providing information and/or update to the requests within 90 days. Recent practices which more closely monitor requests sent to local tax authorities or to the tax audit directorate for gathering of information may result in faster
41. 43 of Greeces 56 EOI partners are members of the Global Forum and 19 of these have already been the subject of a peer review (Austria, Belgium, Canada, Denmark, Estonia, France, Germany, Guernsey, Hungary, India, Ireland, Italy, Luxembourg, the Netherlands, Norway, Qatar, Spain, Switzerland and the United Kingdom) Those reviews show that only four (Austria, Estonia, Luxembourg and Switzerland) have bank secrecy limitations. In relation to Switzerland, a protocol providing for the exchange of bank information is in place.

responses and consistent provision of status updates. A recent centralisation of the database containing taxpayer information will most likely also contribute to expedite Greeces responses to EOI requests.
C.1. Exchange-of-information mechanisms

Exchange of information mechanisms should allow for effective exchange of information.
281. There is a variety of instruments - bilateral and multilateral agreements as well as EU Directives and Regulations - through which Greece can assist other tax authorities and seek assistance from them in relation to both direct and indirect tax liabilities. These include: double taxation agreements (DTCs) and a tax information exchange agreement (TIEA); the Multilateral Convention on Mutual Administrative Assistance in Tax Matters; the EU Council Directive 2011/16/EU 42 of 15 February 2011 on administrative co-operation in the field of taxation, replacing Council Directive 77/799/EEC concerning mutual assistance by the competent authorities of the Member States of the EU in the field of direct taxation and taxation of insurance premiums; Regulation (EC) 904/2010 concerning administrative co-operation by the EU Member States in the field of value added tax; Regulation (EC) 2073/2004 concerning administrative co-operation by the EU Member States in the field of excise duties; and Directive 2010/24/EU on mutual assistance by the EU Member States for the recovery of claims relating to certain levies, duties, taxes and other measures.
282. Greece has a broad network of 55 DTCs which provide for EOI in tax matters on request. All of these treaties are in force with the exception of the DTC signed in 2010 with the UAE. In addition, the TIEA with Guernsey and the protocol to the DTC entered with Belgium, both signed in 2010, are not yet in force. 283. In addition to the DTCs and the TIEA, Greece signed the multilateral Convention on Mutual Administrative Assistance in Tax Matters developed
42.
The EU Council Directive 2011/16/EU must be transposed into national legislation by 1 January 2013.
by the OECD and the Council of Europe in February 2012. 43 The updated Multilateral Convention incorporates internationally agreed standards for exchange of information in tax matters. Whilst this report is focused on the terms of its EOI agreements and practices concerning the exchange of information on request, it is noted that the Multilateral Convention recently signed by Greece, explicitly allows spontaneous and automatic exchange of information as well. When two or more arrangements for the exchange of information for tax purposes exist between Greece and a treaty partner, the parties may choose the most appropriate agreement under which to exchange the information. There are no domestic rules in Greece requiring it to choose between 284. mechanisms where it has more than one agreement involving a particular partner and, thus, the competent authority is free for any exchange to invoke all of the available mechanisms or to choose the most appropriate, unless otherwise provided in the EOI mechanism itself. 285. It is the Greek policy to include the latest version of Article 26 of the OECD Model Tax Convention in its new DTCs and Greece would normally seek to include this in any protocol to existing DTCs that are being renegotiated for other reasons. Greece is negotiating with a number of countries the inclusion of the latest version of Article 26 in their agreements (negotiations have started with Austria, France, Germany, Luxembourg, Ukraine and Uzbekistan). Greece is also negotiating a new protocol with Switzerland to bring EOI between the two counties to the standard. It is also Greek policy to interpret DTCs to allow exchange of all types of information even if they use language that precedes the language used in Article 26 of the 2005 Model Tax Convention. 286. Of the 56 EOI instruments signed by Greece, three (DTCs with Austria, Estonia and Luxembourg) 44 do not provide for effective exchange of information as a result of limitations in the domestic laws of the partner jurisdictions and two (DTC with India and protocol to the DTC with Switzerland), do not allow for exchange of all foreseeably relevant information. Nonetheless, Greece will be able to exchange information to the standard with Austria, Estonia and Luxembourg when EU Council Directive 2011/16/ EU of 15 February 2011 is transposed into national legislation by 1 January 2013. Moreover, once the Multilateral Convention on Mutual Administrative
43. 44. Greece signed this convention on 21 February 2012. The convention is not yet in force in Greece. 43 of Greeces 56 EOI partners are members of the Global Forum and 19 of these have already been the subject of a peer review (Austria, Belgium, Canada, Denmark, Estonia, France, Germany, Guernsey, Hungary, India, Ireland, Italy, Luxembourg, the Netherlands, Norway, Qatar, Spain, Switzerland and the United Kingdom) Those reviews show that only four (Austria, Estonia, Luxembourg and Switzerland) have bank secrecy limitations.

Assistance in Tax Matters has been ratified by Greece, it will be able to exchange information to the standard with India. A new protocol has been negotiated with Switzerland and is expected to be signed soon.
Other forms of exchange of information and co-operation

287. Greece can exchange information with its EU counterparts with basis on the EU Directives and Regulations. Since 2005, Greece exchanges information automatically with its EU counterparts under the EU Directive 2003/48/EC (the Savings Directive) and associated agreements, the Council Directive 77/799/EE, Regulation (CE) 1798/2003 and Regulation 2073/2004. Germany is the EOI partner that provides most information spontaneously to Greece. Other partners that exchange information automatically and/or spontaneously with Greece include Denmark, Poland, Italy, Sweden, the United Kingdom, the Netherlands, Austria, Bulgaria, Spain and Portugal. The chart below shows the amount of data exchanged by Greece under the Savings Directive:
Year 2009 2010 2011 Number of records sent 40 938 36 320 29 468 Number of records received 93 578 86 445 108 543
Foreseeably relevant standard (ToR C.1.1)

288. The international standard for exchange of information envisages information exchange upon request to the widest possible extent. Nevertheless it does not allow fishing expeditions, i.e. speculative requests for information that have no apparent nexus to an open inquiry or investigation. The balance between these two competing considerations is captured in the standard of foreseeable relevance which is included in Article 26(1) of the OECD Model Tax Convention set out below: The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Articles 1 and 2.
289. Of the 56 EOI instruments signed by Greece, only four refer to exchange of information which is foreseeably relevant. 45 However, 52 of the 56 EOI instruments refer to the exchange of information where it is necessary and refer to both application of the treaty and domestic laws. The phrase as is necessary is recognised in the commentary to Article 26 of the OECD Model Tax Convention as allowing the same scope of exchange as does the term foreseeably relevant. 46 290. The DTC with India (1965) limits exchange of information to that necessary for carrying out the provisions of the convention. As no obligations arise to exchange information in assistance of the administration and enforcement of domestic laws, this agreements is not consistent with the international standard. Greece and India have started negotiation for a new EOI provision that mirrors Article 26 of the OECD Model Tax Convention. Moreover, once the Multilateral Convention on Mutual Administrative Assistance in Tax Matters has been ratified by both parties, they will also be able to exchange information to the standard. Six treaties establish the obligation to exchange: (i) information which 291. the competent authorities have at their disposal (treaty United States (1951)); or (ii) information which is available under their respective taxation laws in the normal course of administration (treaties with France (1965), Germany (1966), India (1965), Sweden (1961) and the United Kingdom (1953)). Greece interprets the wording of the above-mentioned treaties broadly as meaning it can use all its legal powers to obtain and exchange information. Moreover, this is consistent with the interpretation adopted by France, Germany, India, the United States and the United Kingdom as indicated in their peer reviews. 292. Greece and Switzerland entered into a protocol on 4 November 2010 containing a new EOI provision. The protocol was ratified by both parties and entered into force on 27 December 2011 and the provisions of the Protocol apply as from 1 January 2012. The protocol includes a provision requiring the requesting party to provide the name and address of the taxpayer and the name and address of the holder of information when making an EOI request. These requirements are unduly restrictive and inconsistent with the standard (see Article 5(5) of the OECD Model TIEA and its Commentary). Greece has received a letter from Switzerland, in which Switzerland explains that the Global Forum peer review has led it to ask for a broader foundation for
45. 46. The DTC signed with Canada, which is in force, the TIEA signed with Guernsey and the protocols signed with Belgium and Switzerland, which are not yet in force. See Article 1 of the OECD Model TIEA, para.5.4 of the Revised Commentary (2008) to Article 26 of the UN Model Convention and para.9 of the Commentary to Article 26 of the OECD Model Convention.

exchange of information (admitting other means of identification in addition to the name and address requirement). A revised protocol has been accepted by both parties and is expected to be signed soon. 293. The Greek authorities have indicated that they have never declined a request on the basis that the information sought by the requesting party would not meet the foreseeably relevant standard. The partner jurisdictions with an exchange of information relationship with Greece that provided peer input confirm this. In cases where a request is unclear or incomplete, the Greek competent authority seeks clarifying or additional information from the requesting jurisdiction. The competent authority also asks the requesting jurisdictions to, whenever possible, provide the Greek tax identification number (TIN) of the person that is the subject of the EOI request. As Greek names can be written in many different ways in other languages, receipt of the TIN ensures the Greek authorities can access the correct information efficiently. If the TIN is not provided, the Greek authorities will use all other identification information provided in the request to identify the relevant person.
In respect of all persons (ToR C.1.2)

294. For exchange of information to be effective it is necessary that a jurisdictions obligations to provide information is not restricted by the residence or nationality of the person to whom the information relates or by the residence or nationality of the person in possession or control of the information requested. For this reason, the international standard for exchange of information envisages that exchange of information mechanisms will provide for exchange of information in respect of all persons. 295. Nine of Greeces DTCs (with Cyprus 47, France, Germany, India, Qatar, Tunisia, Sweden the UK and the US) limit the application of the treaty to residents of the contracting states; however that only represents a true restriction to EOI in relation to one of the ten DTCs, the DTC with India.
47. 1. Footnote by Turkey: The information in this document with reference to Cyprus relates to the southern part of the Island. There is no single authority representing both Turkish and Greek Cypriot people on the Island. Turkey recognises the Turkish Republic of Northern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of the United Nations, Turkey shall preserve its position concerning the Cyprus issue. 2. Footnote by all the European Union Member States of the OECD and the European Commission: The Republic of Cyprus is recognised by all members of the United Nations with the exception of Turkey. The information in this document relates to the area under the effective control of the Government of the Republic of Cyprus.
Most of those treaties are older treaties (concluded before 1993). Moreover, with Cyprus 48, France, Germany, Sweden and the UK, Greece can exchange information under the terms of the EU Mutual Assistance Directive, which allows for exchange of information with respect to all persons. In addition, all but the agreements with India note that information is to be exchanged for carrying out the provisions of domestic laws. As the domestic laws are applicable to non-residents as well as to residents, information can be exchanged in respect of all persons. Greeces agreement with India limits the exchange of information for the purposes of carrying out provisions of the agreements and, as such, they are not in accordance with the international standard. Greece and India have started negotiation for a new an EOI provision that mirrors Article 26 of the OECD Model Tax Convention. Moreover, once the multilateral Convention on Mutual Administrative Assistance in Tax Matters has been ratified by both parties, they will also be able to exchange information to the standard.
Obligation to exchange all types of information (ToR C.1.3)

296. Jurisdictions cannot engage in effective exchange of information if they cannot exchange information held by financial institutions, nominees or persons acting in an agency or a fiduciary capacity. Both the OECD Model Tax Convention and the OECD Model TIEA, which are the authoritative sources of the standards, stipulate that bank secrecy cannot form the basis for declining a request to provide information and that a request for information cannot be declined solely because the information is held by nominees or persons acting in an agency or fiduciary capacity or because the information relates to an ownership interest. 297. Six of the 12 EOI instruments signed or amended by Greece after 2005 include Article 26(5) of the OECD Model Tax Convention: 1 TIEA (with Guernsey), 3 DTCs (with Canada, Qatar and the UAE) and 2 protocols to DTCs (with Belgium and Switzerland). Of those instruments, only the DTCs with Canada and Qatar and the protocol to the DTC with Switzerland are currently in force. Greeces policy is to include Article 26(5) in all its new agreements. 298. None of the 44 agreements established before 2005 contain an explicit provision stipulating that bank secrecy cannot form the basis for declining to provide requested information and that a request for information cannot be declined solely because the information is held by nominees or persons acting in an agency or fiduciary capacity or because the information relates to an ownership interest.
48.
Please see footnote 47.

299. There are no limitations in Greeces laws with respect to access to bank information, or information held by nominees, and ownership and identity information. There are, however, such limitations in place in the domestic laws of four of its treaty partners (Austria, Estonia, Luxembourg and Switzerland). 49 In these cases, the absence of a specific provision in the respective DTCs requiring exchange of bank information unlimited by bank secrecy may serve as a limitation on the exchange of information which can occur under the relevant DTC. The Protocol signed with Switzerland includes Article 26(5) and, thus, overrides the secrecy provisions contained in Swiss domestic law, but is being revised to address the identity issue mentioned previously. It is recommended that Greece continue to renegotiate its older DTCs to include paragraph 26(5) of the OECD Model Taxation Convention.
Absence of domestic tax interest (ToR C.1.4)

300. The concept of domestic tax interest describes a situation where a contracting party can only provide information to another contracting party if it has an interest in the requested information for its own tax purposes. An inability to provide information based on a domestic tax interest requirement is not consistent with the international standard. Contracting parties must use their information gathering measures even though invoked solely to obtain and provide information to the other contracting party. 301. Most of Greeces DTCs are old treaties and do not include the wording of Article 26(4) of the OECD Model Tax Convention, which obliges the contracting parties to use information-gathering measures to exchange requested information without regard to a domestic tax interest. 50 There are, however, no domestic interest restrictions on Greeces powers to access information. As a result, Greece is able to exchange information, including in cases where the information is not publicly available or where it is not already in the possession of the governmental authorities.
49.
50.
43 of Greeces 56 EOI partners are members of the Global Forum and 20 of these have already been the subject of a peer review (Austria, Belgium, Canada, Denmark, Estonia, France, Germany, Guernsey, Hungary, India, Ireland, Italy, Luxembourg, the Netherlands, Norway, Qatar, Spain, Switzerlandthe United Kingdom, and the United States) Those reviews show that only four (Austria, Estonia, Luxembourg and Switzerland) have bank secrecy limitations. The EOI instruments which contain the wording of Article 26(4) of the OECD Model Tax Convention are: the TIEA with Guernsey, the DTCs with Canada, Qatar and UAE and the protocols to DTCs with Belgium and Switzerland. Of those, only the DTCs with Canada and Qatar and the protocol to the DTC with Switzerland are currently in force.
302. A domestic tax interest requirement may however exist in some of Greeces partner countries. 51 In such cases, the absence of a specific provision requiring exchange of information unlimited by domestic tax interest will serve as a limitation on the exchange of information which can occur under the relevant agreement. It is recommended that Greece continue to monitor effective exchange of information in place between such treaty partners and, if necessary, renegotiate its older DTCs to incorporate wording in line with Article 26(4) of the OECD Model Taxation Convention.
Absence of dual criminality principles (ToR C.1.5)

303. The principle of dual criminality provides that assistance can only be provided if the conduct being investigated (and giving rise to the information request) would constitute a crime under the laws of the requested country if it had occurred in the requested country. In order to be effective, exchange of information should not be constrained by the application of the dual criminality principle. 304. There are no such limiting dual criminality provisions in any of Greeces bilateral or in its multilateral agreements.
Exchange of information in both civil and criminal tax matters (ToR C.1.6)
305. Information exchange may be requested both for tax administration purposes and for tax prosecution purposes. The international standard is not limited to information exchange in criminal tax matters but extends to information requested for tax administration purposes (also referred to as civil tax matters). 306. Greece is able to exchange information in both civil and criminal matters. When a matter is under criminal investigation abroad and if Greece is required to provide information linked to this case, such information can be furnished by the Greek competent authority. The Greek authorities confirmed that information has been exchanged in practice in both civil and criminal matters.
51.
43 of Greeces 56 EOI partners are members of the Global Forum and 20 of these have already been the subject of a peer review (Austria, Belgium, Canada, Denmark, Estonia, France, Germany, Guernsey, Hungary, India, Ireland, Italy, Luxembourg, the Netherlands, Norway, Qatar, Spain, Switzerland, the United Kingdom, and the United States) Those reviews show that none of these 20 jurisdictions have domestic tax interest restrictions.

307. The Greek authorities have advised that if an information request pertains to a case involving criminal investigation directed by the Public Prosecutor in the requesting jurisdiction, Greece will exchange information based on mutual legal assistance treaties (MLATs). If such an instrument (MLAT) is not available, exchange of information in such a situation will take place based on a TIEA, the Multilateral COE/OECD Convention (once ratified by Greece) or a DTC which allows for information to be disclosed to the prosecution. Greece also exchanges information under the MLAT where a prosecution is started in Greece. In the absence of an MLAT, information will be provided under the relevant DTC/TIEA. While the SDOE will use its investigative powers to collect required evidence, the exchanges themselves will be conducted by the EOI Unit.
Provide information in specific form requested (ToR C.1.7)

308. Exchange of information mechanisms should allow for the provision of information in the specific form requested (including depositions of witnesses and production of authenticated copies of original documents) to the extent possible under a jurisdictions domestic laws and practices. 309. There are no restrictions in the exchange of information provisions in Greeces DTCs and TIEA that would prevent Greece from providing information in a specific form, as long as this is consistent with its own administrative practices. 310. The TIEA with Guernsey (not yet in force) provides that, if specifically requested by the competent authority of the requesting Party, the competent authority of the requested Party shall provide information in the format requested, including in the form of depositions of witnesses and authenticated copies of original records. 311. The Greek competent authority is prepared to provide information in the specific form requested to the extent permitted under Greek law and administrative practice. In their input, several peers pointed out specifically that Greece provided information in the form requested.
In force (ToR C.1.8)

312. Exchange of information cannot take place unless a jurisdiction has exchange of information arrangements in force. Where exchange of information arrangements have been signed, the international standard requires that jurisdictions must take all steps necessary to bring them into force expeditiously. 313. Greece has a broad network of 55 DTCs and has concluded a TIEA with Guernsey. Also, other TIEAs are under various stages of negotiation
(with Antigua and Barbuda, Bermuda, the Cayman Islands, the Cook Islands, Gibraltar, Grenada, Jersey, Mauritius, Saint Kitts and Nevis, Saint Lucia and Samoa). Greece continues to extend its TIEA network and has approached another four jurisdictions (Panama, the Isle of Man, the Netherlands Antilles 52 and the British Virgin Islands) inviting them to commence TIEA negotiations. 314. All but two of Greeces EOI instruments are currently in force: the TIEA with Guernsey, the DTC with the UAE. In addition, a new protocol to DTC was signed with Belgium and is not yet in force. All three agreements/ protocols were signed in 2010. 315. In Greece, the negotiation and ratification a tax treaty involves the following steps: before starting treaty negotiations, the Greek competent authority reviews information concerning the economic relations between Greece and the jurisdiction, its tax system (including applicable tax rates) and the legal framework for the exchange of information in place in the jurisdiction. This information is usually collected by the Greek Ministry of Foreign Affairs and the Ministry of Finance; the Greek competent authority negotiates the treaty provisions with the foreign competent authority. When the final text of the treaty is agreed between the parties, the text is translated into Greek and the Greek Ministry of Foreign Affairs arranges for the official signing. Treaties must be signed by the Minister of Finance (or, on the Ministers behalf, by a Greek Ambassador when so authorised) and the counterparts competent authority simultaneously at the same location; after the official signing of the treaty, the Minister of Finance transmits the treaty to all other Greek Ministers. This procedure may take time. If a Minister disagrees with the treaty, the Greek competent authority might have to renegotiate it. The Greek authorities have advised that so far this situation has never occurred; when the text is approved and signed by the Greek Ministers, it is then presented to the Financial Affairs Parliamentary Commission, which is mandated to consider any financial legislation. After the Commissions approval, the text is voted by the Greek Parliament; and
52.
The approach by Greece was made before the Netherlands Antilles was dissolved on 10 October 2010, resulting in two new constituent countries, Curaao and Sint Maarten, with the other islands joining the Netherlands as special municipalities. Greek authorities have indicated that they will be following up with the relevant authorities in Curaao, Sint Maarten and the Netherlands.

after approval, the partner is notified and the treaty is published in the Greek Official Gazette; and the agreement enters into force as of 1 January of the following year (the beginning of the Greek financial year).
316. Greek authorities have indicated that the same process is applicable for TIEAs. 317. With respect to the signature of treaties, the Greek competent authority is currently planning to establish a procedure whereby it will, in appropriate cases, obtain the Finance Ministers signature on agreements and then send the signed agreements by diplomatic post to the counterpart jurisdiction for signature. This procedure will expedite the signature of new EOI instruments. 318. When analysing the Greek treaty network, it can be seen that the time period between the signature of an EOI arrangement and the entry into force can at times be long. The speed of the ratification procedure seems to have significantly improved in recent years and the EOI instruments signed after 2000 are generally brought into force in one to three years. The Greek authorities have mentioned that in some occasions, the ratification procedure of the other contracting party was delayed. It is important that Greece continue its efforts to bring its treaties into force expeditiously.
In effect (ToR C.1.9)

319. Exchange of information cannot take place unless a jurisdiction has exchange of information arrangements in force. Where exchange of information agreements have been signed the international standard requires that jurisdictions must take all steps necessary to bring them into force expeditiously. 320. Greeces agreements enter into force as of 1 January of the year following ratification (i.e. on the first day of the next Greek financial year). 321. Article 28(1) of the Greek Constitution provides that: The generally recognised rules of international law, as well as international conventions as of the time they are sanctioned by statute and become operative according to their respective conditions, shall be an integral part of domestic Greek law and shall prevail over any contrary provision of the law. The rules of international law and of international conventions shall be applicable to aliens only under the condition of reciprocity.
322. As described previously in Part B of this report, Greece has in place the legal and regulatory framework necessary to give effect to its agreements for exchange of information.
Phase 1 determination The element is in place. Factors underlying recommendations The ratification of EOI arrangements can take several years and is delayed in some occasions. Recommendations Greece should continue its efforts to ensure the ratification of all EOI arrangements signed with counterparts expeditiously.
Phase 2 rating Largely Compliant.
C.2. Exchange-of-information mechanisms with all relevant partners

The jurisdictions network of information exchange mechanisms should cover all relevant partners.
323. Ultimately, the international standard requires that jurisdictions exchange information with all relevant partners, meaning those partners who are interested in entering into an information exchange arrangement. Agreements cannot be concluded only with counterparties without economic significance. If it appears that a jurisdiction is refusing to enter into agreements or negotiations with partners, in particular ones that have a reasonable expectation of requiring information from that jurisdiction in order to properly administer and enforce its tax laws it may indicate a lack of commitment to implement the standards. Greece has a solid history of exchange of information in tax matters. The 324. first conventions in this regard were signed with the United Kingdom and the United States in the 1950s. Greece quickly established a network of agreements with neighbour countries in Eastern Europe after the dissolution of the Soviet Union. Greece currently has an extensive treaty network of 56 bilateral agreements (55 DTCs and 1 TIEA), 54 of which are currently in force, which covers: all 27 EU member States; all of its neighbour countries (i.e. Albania, Bulgaria, FYROM and Turkey);

29 of the 34 of OECD countries; 14 of the G20 jurisdictions; its main trading partners; 53 and 43 of the 100 other members of the Global Forum.
It is the Greek policy to enter into EOI instruments (DTCs or TIEAs) 325. with all relevant partners. Greece has recently signed DTCs/protocols to DTCs with Belgium, Switzerland and the UAE and a TIEA with Guernsey. In addition, other TIEAs are under various stages of negotiation (with Antigua and Barbuda, Bermuda, the Cayman Islands, the Cook Islands, Gibraltar, Grenada, Jersey, Mauritius, Saint Kitts and Nevis, Saint Lucia and Samoa). 326. Greece has also been exchanging information in tax matters with other EU Members under the provisions of the EU Mutual Assistance Directive and the Savings Directive. In addition, Greece signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters developed by the OECD and the Council of Europe in February 2012. 54 The updated Multilateral Convention incorporates internationally agreed standards for exchange of information in tax matters. 327. Greeces most significant EOI relationships measured in terms of number of EOI requests received (as well as considering the volumes of spontaneous and automatic exchange received) over recent years are with Germany, the United States, the United Kingdom, Bulgaria and Cyprus. 55 This, to some extent, reflects the economic relationship with these jurisdictions. In terms of requests made by Greece, its most significant EOI partner is Cyprus. 56
53.
54.
55. 56.
According to the trade information published by the World Trade Organization with respect to Greece in October 2011, Greece exports mainly to the European Union, Turkey, the United States, Albania and the Russia Federation and Greeces imports come mainly from the European Union, the Russia Federation, China and Korea (http://stat.wto.org/CountryProfiles/GR_e.htm, accessed 7 February 2012). The updated list of signatories and parties to the Multilateral Convention is available at www.oecd.org/document/14/0,3746,en_2649_33767_2489998_1_1_1_1,00. html. Greece signed this convention on 21 February 2012. The convention is not yet in force in Greece. Please see footnote 47. Please see footnote 47.

Phase 1 determination The element is in place. Factors underlying recommendations Recommendations Greece should continue to develop its EOI network with all relevant partners. Phase 2 rating Compliant.
C.3. Confidentiality
The jurisdictions mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received.
Information received: disclosure, use, and safeguards (ToR C.3.1)

328. Governments would not engage in information exchange without the assurance that the information provided would only be used for the purposes permitted under the exchange mechanism and that its confidentiality would be preserved. Information exchange instruments must therefore contain confidentiality provisions that spell out specifically to whom the information can be disclosed and the purposes for which the information can be used. In addition to the protections afforded by the confidentiality provisions of information exchange instruments, jurisdictions with tax systems generally impose strict confidentiality requirements on information collected for tax purposes. 329. The provisions governing confidentiality are based on Article 26(2) of the OECD Model Tax Convention (in its successive versions, depending on the date of signature of the treaty in question) or on article 8 of the OECD Model TIEA, according to which any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State. 330. All DTCs and TIEAs signed by Greece have secrecy provisions ensuring that all information received will be kept secret. The majority of Greeces DTCs and a TIEA provide that the information obtained in the course of a request for assistance shall be accessible only to persons directly concerned with or involved in the assessment of the taxes, or the administrative control of that assessment. This term embraces taxpayers, their representatives, the tax administration, and judges of the tax courts.

331. Council Directive 77/799/EEC also contains safeguards corresponding to those in Article 26 of the OECD Model Tax Convention restricting the disclosure of information by the competent authority of the receiving state. So when information is exchanged under the provisions of the EU Mutual Assistance Directive it is subject to the requirements of its secrecy provisions. Article 22(1) of Law 1914/1990, which transposes Council Directive 77/799/ EEC into national law, states that Any information, referred to in article 20 hereof, that is furnished to the Greek competent authority by other Member States shall be treated as secret, according to the provisions of the Greek tax legislation. 332. In addition, other provisions in the Greek laws ensure that information received by the Greek competent authorities from foreign authorities is kept confidential. Pursuant to Article 85(2) of the Income Tax Code (Law 2238/1994), the Greek tax administration is obliged to treat all tax information as confidential The tax returns, the tax records, the reports, the notices of results, the audit sheets, the decision issued by the head of the tax office and any records of the file relating to taxation or connected with it shall be confidential and their disclosure shall be allowed to no person whatsoever other than the taxable person to whom they pertain. 333. However, the same law provides that the agencies of Ministry of Finance are, however, exceptionally permitted to have in their possession confidential tax information for the performance of their duties; although that is not common in practice. The violation of tax secrecy, as referred to in Article 85 of the Income Tax Code, constitutes both a disciplinary and a criminal offence. Other laws including the Code on Administrative Civil Servants and Employees of Public Law Legal Entity (Article 26 of Law 3528/2007) 57 and the Criminal Code (Presidential Decree 283/1985) also contain secrecy provisions and the application of penalties in case confidentiality is not respected.
57.
Article 26. Confidentiality 1. The official shall be obliged to keep confidentiality in regard to matters which are designed as confidential by the provisions in force. He will also be obliged to keep confidentiality in any case in which this is imposed by common experience and rationale with respect to facts or information of which knowledge is taken by him during the performance of his duties or with such opportunity.
334. Exchange of information requests are processed by DIER officials, who are aware of the obligation to keep information received under an EOI confidential. The DIER officials are instructed to limit the number of employees involved to guarantee that confidentiality is preserved. Moreover, all communication made with local tax offices, tax audit department or any other agencies clearly indicate that any information or materials provided are subject to confidentiality. 335. Greek authorities indicated that there have been no cases where confidentiality was not respected. Moreover, the peer jurisdictions which provided input to this review confirmed that they are not aware of instances where Greece has not ensured the confidentiality of the information received.
All other information exchanged (ToR C.3.2)

336. The confidentiality provisions in Greeces exchange of information agreements and domestic law do not draw a distinction between information received in response to requests for information forming part of the requests themselves. As such, these provisions apply equally to all requests for such information, background documents to such requests, and any other document reflecting such information, including communications between the requesting and requested jurisdictions and communications within the tax authorities of either jurisdiction.
C.4. Rights and safeguards of taxpayers and third parties

The exchange of information mechanisms should respect the rights and safeguards of taxpayers and third parties.
Exceptions to requirement to provide information (ToR C.4.1)

337. The international standard allows requested parties not to supply information in response to a request in certain identified situations. 338. All of Greeces DTCs and a TIEA ensure that the parties are not obliged to provide information which would disclose any trade, business,

industrial, commercial or professional secret or information the disclosure of which would be contrary to public policy (ordre public), in a manner consistent with Article 26(3)(c) of the Model Tax Convention. 339. Among other reasons, an information request can be declined where the requested information would disclose confidential communications protected by legal professional privilege. As noted previously in Section B.1 of the report, professional privileges in Greece do not block access by the Greek authorities to information required in order to respond to an EOI request. 340. Information received from foreign competent authorities indicates that there have been no instances where Greeces EOI practices have not respected the rights and safeguards of taxpayers and third parties.
C.5. Timeliness of responses to requests for information

The jurisdiction should provide information under its network of agreements in a timely manner.
Responses within 90 days (ToR C.5.1)

341. In order for exchange of information to be effective it needs to be provided in a timeframe which allows tax authorities to apply the information to the relevant cases. If a response is provided but only after a significant lapse of time the information may no longer be of use to the requesting authorities. This is particularly important in the context of international cooperation as cases in this area must be of sufficient importance to warrant making a request. 342. For the period between 1 January 2006 and 31 December 2009, Greece has received approximately 300 EOI requests. No statistics are currently available in connection to the timeframe to reply to the requests. The Greek authorities confirmed, however, that most of the requests received more recently were dealt with within a period from 90 to 180 days. The competent authority makes use of the MS Excel application to track EOI requests received as well as EOI requests sent by Greece. Reminders are sent internally and externally when appropriate.
343. Statistics were available for the period between 1 January 2009 and 31 December 2011. In those years, Greece received 200 requests 78 requests for information in 2009, 46 in 2010 and 76 in 2011. The requests were handled as follows:
2009 Less than 90 days 17 < 90 days 14 < 90 days 23 Less than 180 days 22 Less than 365 days 18 2010 < 180 days < 365 days > 365 days 8 8 2011 < 180 days < 365 days > 365 days 12 4 Pending 37 Total 76 5 Pending 11 Total 46 More than 365 days 14 Pending 7 Total 78
344. Input from Greeces EOI partners received in the course of the peer review reveals that the responses received from Greece are in most cases of high quality. Some of Greeces EOI partners indicated, nevertheless, that Greece normally takes one year or longer to reply to EOI requests. Many have also indicated that Greece rarely sends an update on the status of the request within 90 days. 345. The Greek authorities gave several reasons to explain this situation: complexity of requests: some countries request information on several persons or requests require a complete audit or it is necessary to consult several or all Greek banks. Moreover, some cases refer to businesses/establishments of Greek enterprises across multiple countries (e.g. complex transfer pricing cases), in which case Greece will need to ask other countries for information in order to reply to the request received; difficulties with translating Greek names: it was reported that on several occasions it was difficult to identify the name of the taxpayer in the Greek language as names in Greek can be represented in various ways in the Roman alphabet; internal procedures and translation: requests are sent by the Greek competent authority to tax audit authorities or local tax authorities via regular post. Regular post is also used when these authorities send information to the competent authority. Inevitably, delays may occur. Moreover, all requests have to be translated into Greek before being forwarded by the Greek competent authority to the authorities responsible for collecting the information;

infrastructure problems: lack of a computerised system between the Greek competent authority and the local tax offices. Communications take place by official letters sent by post; and human resources: the Greek competent authority could benefit from being more resourced. However, due to recent austerity measures in place in Greece, the fact that the team has not been reduced in number signifies the importance of this work to the Greek government.
346. Despite all the above mentioned obstacles, the Greek competent authority believes that it makes all possible efforts and has managed to provide complete and satisfactory responses to the EOI partners. The authorities have confirmed that there were no instances when an EOI request could not be replied to because information was not available in Greece or because of lack of access powers. The Greek authorities believe that the recent establishment of the Department of International Administrative Cooperation for Direct Taxes (Department C) within the DIER is enhancing co-operation, compliance and effectiveness in exchange of information.
Organisational process and resources (ToR C.5.2)

347. Greece has extensive experience with exchange of information and has had a dedicated unit responsible for this work since 1980. Economic constraints in Greece in recent years have resulted in a stronger focus on EOI, as it is an instrument for tracking revenues due to be paid as taxes in Greece. 348. The Directorate of International Economic Relations DIER is the competent authority for the negotiation, the conclusion, the monitoring of the application as well as for the interpretation of the international conventions for the avoidance of double taxation of income and capital. 349. Department C was recently established in 2011 and is responsible for, inter alia, the exchange of information and the enforcement of the mutual administrative assistance in the field of direct taxes. DIER employs twentyone employees, four of them in Department C. Those four employees are fully dedicated to the task of exchanging information (both incoming and outgoing requests) under the co-ordination of their Head of Unit. Those employees report to the Head of Tax Affairs Department who, in turn, reports to the Head of the DIER. The Head of the DIER reports directly to the Minister of Finance. At present, all EOI requests, whether incoming or outgoing, are serviced with by those three employees and their Head of Unit. All EOI requests received by the Ministry of Finance are immediately forwarded to the EOI team. For example, the international information sharing related to transfer pricing matters is handled by the EOI team, even though the detailed audit work involved in these cases is conducted by a different unit within the Ministry of Finance.
350. Nearly all the staff of the DIER has economics or law qualifications at postgraduate level. The officials involved in the exchange of information have been approved in difficult selection process of the Ministry of Finance and they have attended training promoted by the Ministry of Finance and National School of Government Administration, in addition to the EU FISCALIS 58 program and other conferences and workshops promoted by the EU. 351. As mentioned in section C.5.1 above, 78 requests for information were received by Greece in 2009, 46 in 2010 and 76 in 2011. The EOI team now adopts the following procedure for handling EOI requests received from foreign competent authorities: the EOI team verifies whether the requesting authority is the authorised foreign competent authority and whether the request has legal grounds i.e. whether the request is made in an EOI instrument in force (including the Council Directive, a TIEA or a DTC) and whether the type of information requested can be provided under the EOI instrument; a message (post or email) is sent to the foreign competent authority acknowledging receipt of the request. If the request is unclear or incomplete, the foreign competent authority is asked for further clarification and/or additional information; the EOI team registers the request on its MS Excel file; available databases (generally, the General Registry application of the TAXIS System and the Commercial Registry) are searched for information requested. Since April 2011 the EOI team has had access to a database which replicates the information available in the databases at the local tax offices, and a centralised taxpayers registry is maintained. Simpler EOI requests are answered directly by the EOI team at this stage; most requests are passed to the relevant Ministry of Finance department or local tax office for information gathering (see further Part B of this report). The EOI team arranges the translation of the request and passes the content of the request to the authority that will be responsible for collecting the information (e.g. local tax authority, SDOE, General Directorate of Tax Audits). Requests are forwarded by secure post, with a clear indication that the information is subject to confidentiality;
58.
FISCALIS is a European commission programme aimed at improving the operation of EU member countries taxation systems in the internal market. See: http:// ec.europa.eu/taxation_customs/taxation/tax_cooperation/fiscalis_programme/ index_en.htm.

during the first week each month the EOI team usually considers all of the requests logged in its MS Excel file and liaises with the authorities collecting the information as necessary; and after receiving the requested information, the EOI team prepares an answer to the foreign competent authority. The answer is reviewed by the Head of the Department C or the Head of the DIER before being sent.
352. As the EOI team is small and well experienced and their role is largely as co-ordinator of requests (rather than exercising access powers themselves), there has not been a need for more detailed internal procedures, elaborating further on the above, to date.
Absence of restrictive conditions on exchange of information (ToR C.5.3)

353. There are no laws or regulatory practices in Greece that impose additional restrictive conditions on exchange of information.
Phase 1 determination This element involves issues of practice that are assessed in the Phase 2 review. Accordingly no Phase 1 determination has been made. Phase 2 rating Largely Compliant. Factors underlying recommendations Greeces competent authority has in many instances been unable to answer incoming requests or provide updates on the status of requests within 90 days. Recommendations It is recommended that Greek competent authority ensure consistent application of its new procedure for checking on the status of requests, checking with authorities collecting the information and sending updates to its counterparts.
SUMMARY OF DETERMINATIONS AND FACTORS UNDERLYING RECOMMENDATIONS 101
Summary of Determinations and Factors Underlying Recommendations

Determination Factors underlying recommendations Recommendations
Jurisdictions should ensure that ownership and identity information for all relevant entities and arrangements is available to their competent authorities (ToR A.1) Phase 1 determination: The element is in place, but certain aspects of the legal implementation of the element need improvement. There are many instances where the holders of bearer shares in societies anonymes and shipping companies must be identified, including all cases where such shares are transferred, though these do not ensure the availability of information on the identity of persons holding bearer shares in every circumstance. Foreign companies having their place of effective management in Greece are not obliged to maintain ownership information in all circumstances. There are no penalties on shipping companies for not keeping a book of shares. Greece should take necessary measures to ensure that robust mechanisms are in place to identify the owners of bearer shares.
Greece should require foreign companies having their place of effective management in Greece to maintain information on their ownership. In so far as there are no penalties provided, Greece should introduce effective sanctions for entities where they fail to comply with requirements to maintain and ownership and information. Greece should ensure that information is available to their competent authority that identifies the settlor and all beneficiaries of foreign trusts administered in Greece.
Greek trustees of foreign trusts are not required to identify beneficiaries who have less than 25% interest in the trust.
Phase 2 rating: Partially Compliant.
102 SUMMARY OF DETERMINATIONS AND FACTORS UNDERLYING RECOMMENDATIONS

Factors underlying recommendations
Determination
Recommendations
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements (ToR A.2) Phase 1 determination: The element is in place. Greek legislation does not ensure that reliable accounting records or underlying documentation are kept in all circumstances for foreign trusts with Greek-resident administrators or trustees. An obligation should be established to maintain reliable accounting records, including underlying documentation for trusts with Greek-resident administrators or trustees in all circumstances.
Phase 2 rating: Compliant. Banking information should be available for all account-holders (ToR A.3) Phase 1 determination: The element is in place. Phase 2 rating: Compliant. Competent authorities should have the power to obtain and provide information that is the subject of a request under an exchange of information arrangement from any person within their territorial jurisdiction who is in possession or control of such information (irrespective of any legal obligation on such person to maintain the secrecy of the information) (ToR B.1) Phase 1 determination: The element is in place. Phase 2 rating: Compliant. The rights and safeguards (e.g. notification, appeal rights) that apply to persons in the requested jurisdiction should be compatible with effective exchange of information (ToR B.2) Phase 1 determination: The element is in place. Phase 2 rating: Compliant.
SUMMARY OF DETERMINATIONS AND FACTORS UNDERLYING RECOMMENDATIONS 103
Determination
Recommendations
Exchange of information mechanisms should allow for effective exchange of information (ToR C.1) Phase 1 determination: The element is in place. The ratification of EOI arrangements can take several years and is delayed in some occasions. Greece should continue its efforts to ensure the ratification of all EOI arrangements signed with counterparts expeditiously.
Phase 2 rating: Largely Compliant. The jurisdictions network of information exchange mechanisms should cover all relevant partners (ToR C.2) Phase 1 determination: The element is in place. Phase 2 rating: Compliant. The jurisdictions mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received (ToR C.3) Phase 1 determination: The element is in place. Phase 2 rating: Compliant. The exchange of information mechanisms should respect the rights and safeguards of taxpayers and third parties (ToR C.4) Phase 1 determination: The element is in place. Phase 2 rating: Compliant. Greece should continue to develop its exchange of information network with all relevant partners.
104 SUMMARY OF DETERMINATIONS AND FACTORS UNDERLYING RECOMMENDATIONS

Determination
Recommendations
The jurisdiction should provide information under its network of agreements in a timely manner (ToR C.5) This element involves issues of practice that are assessed in the Phase 2 review. Accordingly no Phase 1 determination has been made. Phase 2 rating: Largely Compliant. Greeces competent authority has in many instances been unable to answer incoming requests or provide updates on the status of requests within 90 days. It is recommended that Greek competent authority ensure consistent application of its new procedure for checking on the status of requests, checking with authorities collecting the information and sending updates to its counterparts.
ANNEXES 105
Annex 1: Jurisdictions Response to the Review Report 59

1. The Peer Review of Greece was published on June 2012 and covers the period from 2009 to 2011. The ratings assigned by the expert team of assessors found Greece Partially Compliant in the element A1 and Largely Compliant in elements C1 and C5, resulting in an overall rating Largely Compliant. Greece has expressed its disagreement to the assignment of these ratings, both in its written comments to the Global Forum Secretariat and in its presentation in the PRG meeting in Paris on 7th October 2013. In particular, the rating for element A1 (Partially Compliant) fails to reflect the findings of the Greece Report, which explicitly confirms the compliance in the determinations (The element is in place, but certain aspects of the legal implementation of the element need improvement), and at the same time, fails in terms of consistency and fairness in comparison with the ratings assigned to other jurisdictions. With regard to the ratings in elements C1 and C5, apart from the inconsistency vis--vis the ratings of other jurisdictions, they fail to take in due consideration the effective reply to the requests for exchange of information and the high quality of the information, as confirmed by Greeces peers. 2. Since the Greece Report was released in 2012, it is worth highlighting the developments made during last year which contribute to a greater transparency and have a positive impact to the effective exchange of information. Last July the Hellenic Parliament passed two laws, introducing major reforms in the tax legislation, namely the new Codes on Income Taxation and on Tax Procedures (Law 4172/2013 60 and Law 4174/2013 61, respectively). The new legislation introduces CFC rules, a general anti-abuse clause and a definition of legal entities, which includes offshore companies and trusts. A series of circulars are in the process of
59. 60. 61. This Annex presents the Jurisdictions response to the review report and shall not be deemed to represent the Global Forums views. Official Gazette No. A 167/23 July 2013. Official Gazette No. A 170/26 July 2013.
106 ANNEXES
elaboration, in order to enable the entry into force of the new legislation on 1 January 2014. In addition, a working group is currently examining the establishment of a General Asset Registry for natural persons, which shall consolidate information from tax or other databases, including information on real estate, vehicles, vessels and shares or/and participation in companies. It is also underlined that Greece has ratified the Convention of OECD/ Council of Europe on mutual administrative assistance in tax matters (Law 4153/2013 62), which entered into force on 1 September 2013. Moreover, an Additional Protocol to the Double Taxation Convention with the Swiss Confederation has been signed in August 2012 and ratified a few months later (Law 4105/2013) 63; the Protocol to the Double Taxation Convention with Belgium was ratified with Law 4106/2013 64. A Protocol was signed last June to the Double Taxation Convention with the United Arab Emirates and is in process of ratification together with the DTC. Greece also transposed the EU Directive 2011/16 on administrative cooperation in the field of taxation into national legislation with Law 4170/2013 65. The same law also establishes (Article 62) the System of Bank and Payments Accounts Registry within the General Secretariat of Information Systems of the Ministry of Finance. This electronic Registry will serve as the only regular instrument, through which the competent public authorities (Services of General Secretariat of Public Revenues of Ministry of Finance, SDOE, Financial Police, Financial Prosecutor, Prosecutor of Corruption Crimes, Hellenic FIU) will address requests for lifting the bank secrecy to the credit and payment institutions holding information on natural or legal persons or entities, on the basis of the relevant applicable legislation. Through the same electronic channel, these institutions will immediately forward the requested information to the requesting public authority and, thus, any delay noticed today in handling requests for lifting the bank secrecy will be certainly eliminated. Consequently, the immediate response to such a request will have a direct impact to the ability of the tax administration to timely provide information when requested during the exchange of information procedure. A Ministerial Decision regulating the modalities of this mechanism is to be issued shortly. Article 63 of the same Law provides for criminal and administrative penalties in case that the confidentiality of the provided information is breached.
62. 63. 64. 65. Official Gazette No. A 116/2013. Official Gazette No. A 5/2013. Official Gazette No. A 6/2013. Official Gazette No. A 163/2013.
ANNEXES 107
Annex 2: List of All Exchange-of-Information Mechanisms in Effect
Multilateral agreements
Since 21 February 2012, Greece is a signatory to the multilateral Convention on Mutual Administrative Assistance in Tax Matters. The status of the multilateral Convention and amending the 2010 Protocol as at 16 April 2012 is set out in the below table. 66 When two or more arrangements for the exchange of information for tax purposes exist between Greece and a treaty partner, the parties may choose the most appropriate agreement under which to exchange the information.
Original Convention Signature (opened on 25-Jan-88) Protocol (P)/Amended Convention (AC) Signature (opened on 27-May-10) 03-11-2011 (AC) 03-11-2011 (AC) 26-03-2003 07-02-1992 28-04-2004 16-07-1992 11-12-1989 17-09-2003 01-04-1995 01-04-1995 01-09-2005 01-10-2004 01-12-2000 04-04-2011 (P) 03-11-2011 (AC) 03-11-2011 (P) 01-03-2012 (AC) 27-05-2010 (P) 27-05-2010 (P) 27-05-2010 (P) 01-06-2011 01-06-2011 01-04-2012
Country Argentina Australia Azerbaijan Belgium Brazil Canada Costa Rica Denmark Finland France
Entry into force
Entry into force
66.
The updated table is available at www.oecd.org/document/14/0,3746,en_2649_33767_ 2489998_1_1_1_1,00.html.
108 ANNEXES
Protocol (P)/Amended Convention (AC) Signature (opened on 27-May-10) 03-11-2010 (P) 03-11-2011 (P) 21-02-2012 01-11-1996 (P) 01-02-2012 01-06-2012 27-05-2010 (P) 26-01-2012 (AC) 03-11-2011 (AC) 30-06-2011 (AC) 31-01-2006 03-11-2011 27-05-2010 27-05-2010 27-01-2011 25-09-1990 05-05-1989 19-03-1996 27-05-2010 27-05-2010 12-11-2009 20-04-1989 30-12-2004 24-05-2007 28-06-1989 1-06-2011 01-12-2010 01-04-1995 01-07-2009 01-05-2008 01-04-1995 01-02-1997 01-04-1995 01-10-1997 01-05-2006 27-05-2010 (P) 01-05-2012 01-07-2012 01-03-2012 01-06-2011 01-10-2011 03-11-2011 (P) 27-05-2010 (P) 27-05-2010 (P) 27-01-2011 (P) 27-05-2010 (P) 27-05-2010 (P) 09-07-2010 (P) 27-05-2010 (P) 03-11-2011 (AC) 27-05-2010 (P) 03-11-2011 (AC) 18-02-2011 (P) 01-09-2011 27-05-2010 (P) 03-11-2011 (AC) 27-05-2010 (P) 27-05-2010 (P) 27-05-2011 (P) 01-10-2011 01-06-2011
Original Convention Signature (opened on 25-Jan-88) 12-10-2010 17-04-2008 21-02-2012 22-07-1996
Country Georgia Germany Greece Iceland India Indonesia Ireland Italy Japan Korea Mexico Moldova Netherlands Norway Poland Portugal Russia Slovenia South Africa Spain Sweden Turkey Ukraine United Kingdom United States
Entry into force 1-06-2011
Entry into force 01-06-2011
ANNEXES 109
Bilateral agreements
List of Tax Information Exchange Agreements (TIEAs) or Double Tax Conventions (DTCs) signed by Greece as at 29 February 2012.
Jurisdiction 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Albania Armenia Austria Azerbaijan Belgium Bulgaria Canada China (Peoples Rep.) Croatia Cyprus
67
Type of EoI arrangement DTC DTC DTC DTC DTC Protocol DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC TIEA
Date signed 14 Jul 1995 12 May 1999 18 Jul 2007 16 Feb 2009 25 May 2004 16 Mar 2010 15 Feb 1991 29 Jun 2009 03 Jun 2002 18 Oct 1996 30 Mar 1968 23 Oct 1986 18 May 1989 27 Nov 2004 04 Apr 2006 21 Jan 1980 21 Aug 1963 10 May 1999 18 Apr 1966 29 Sep 2010
Date in force 13 Dec 2000 18 Jul 2002 01 Apr 2009 11 Mar 2010 30 Dec 2005 Not in force 27 Jun 2001 16 Dec 2010 11 Nov 2005 18 Dec 1998 16 Jan 1969 23 May 1989 18 Jan 1992 23 Aug 2006 01 Aug 2008 04 Oct 1981 31 Jan 1965 02 Oct 2002 08 Dec 1967 Not in force
Czech Republic Denmark Egypt Estonia Finland France Georgia Germany Guernsey
67.
1. Footnote by Turkey: The information in this document with reference to Cyprus relates to the southern part of the Island. There is no single authority representing both Turkish and Greek Cypriot people on the Island. Turkey recognises the Turkish Republic of Northern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of the United Nations, Turkey shall preserve its position concerning the Cyprus issue. 2. Footnote by all the European Union Member States of the OECD and the European Commission: The Republic of Cyprus is recognised by all members of the United Nations with the exception of Turkey. The information in this document relates to the area under the effective control of the Government of the Republic of Cyprus.
110 ANNEXES
Type of EoI arrangement DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC
Jurisdiction 20 Hungary 21 Iceland 22 India 23 Ireland 24 Israel 25 Italy 26 Korea (Rep.) 27 Kuwait 28 Latvia 29 Lithuania 30 Luxembourg 31 Malta 32 Mexico 33 Moldova 34 Morocco 35 Netherlands 36 Norway 37 Poland 38 Portugal 39 Qatar 40 Romania 41 42 Russia Saudi Arabia
Date signed 25 May 1983 07 Jul 2006 11 Feb 1965 24 Nov 2003 24 Oct 1995 03 Sep 1987 20 Mar 1995 02 Mar 2003 27 Mar 2002 15 May 2002 22 Nov 1991 13 Oct 2006 13 Apr 2004 29 Mar 2004 20 Mar 2007 16 Jul 1981 18 Jan 2006 27 Apr 1988 20 Nov 1987 02 Dec 1999 26 Oct 2008 17 Sep 1991 26 Jun 2000 19 Jun 2008 25 Jun 1997 11 Nov 2008 23 Oct 1986 05 Jun 2001 19 Nov 1998 04 Dec 2000 06 Oct 1961 16 Jun 1983 4 Nov 2010
Date in force 01 Jul 1985 07 Aug 2008 17 Mar 1967 29 Dec 2004 06 Mar 1998 20 Sep 1991 10 Jul 1997 20 Apr 2005 07 Mar 2005 05 Dec 2005 26 Aug 1995 30 Aug 2008 07 Dec 2005 11 Jul 2005 17 Nov 2010 17 Jul 1984 1 July 2006 16 Sep 1991 28 Sep 1991 13 Aug 2002 21 Mar 2010 07 Apr 1995 20 Dec 2007 01 May 2010 08 Jun 2010 23 May 1989 08 Dec 2003 19 Feb 2003 21 Aug 2002 20 Aug 1963 21 Feb 1985 27 Dec 2011
43 Serbia 44 Slovak Republic 45 Slovenia 46 South Africa 47 Spain 48 Sweden 49 Switzerland
ANNEXES 111
Jurisdiction 50 Tunisia 51 52 Turkey Ukraine
Type of EoI arrangement DTC DTC DTC DTC DTC DTC DTC
Date signed 31 Oct 1992 14 May 2007 03 Dec 2003 06 Nov 2000 18 Jan 2010 25 Jun 1953 20 Feb 1950 30 Dec 1953 01 Apr 1997
Date in force 29 Sep 2010 05 Mar 2004 26 Sep 2003 Not in force 15 Jan 1954 30 Dec 1953 15 Jan 1999
53 United Arab Emirates 54 United Kingdom 55 United States 56 Uzbekistan
112 ANNEXES
Annex 3: List of all Laws, Regulations and Other Relevant Material

Constitution of the Hellenic Republic - Excerpts Greek Civil Code (Presidential Decree No 456 of 1984) - Excerpts Greek Criminal Code (Presidential Decree No 283 of 1985) - Excerpts Greek Commercial Code (Presidential Decree of 1 May 1835) Excerpts Greek Civil Procedure Code (Presidential Decree No 503 of 1985) Greek Criminal Procedure Code (Presidential Decree No 258 of 1986)
Tax Laws and Regulations

Law No 1828 of 1989; Article 38 Code of Books and Records (Presidential Decree No 186 of 1992) - Excerpts Presidential Decree No 249 of 1998- Excerpts Income Tax Code (Law No 2238 of 1994) - Excerpts Law No 2343 of 1995 - Excerpts Circular POL No 1169 of 23 May 1997 Circular POL No 1053/2011 Law No 2523 of 1997 - Excerpts Presidential Decree No 154 of 1997 - Excerpts Decision No 1027411/842/DM of 26 February 1998 VAT Code (Law No 2859 of 2000) Law No 3296 of 2004 Law No 3312 of 2005 Presidential Decree No 85 of 2005 - Excerpts
ANNEXES 113
Decision No 1070576/2627/DM/POL1102 of 14 July 2005 Presidential Decree No 276 of 20 October 2010 - Excerpts Law No 3842 of 2010; Article 20 Law No 3943 of 2011 - Excerpts Law No 3986 of 1 June 2011 Excerpts Circular POL No 1177 of 23 August 2011
Anti-money laundering laws and regulations

Law No 3691 of 5 August 2008 BOG Decision No 281 of 17.3.2009 BOG Decision No 285 of 9.7.2009 BOG Decision No 290 of 11.11.2009 BOG Decision No 300 of 28.7.2010 HCMC Decision No 1/506/8.4.2009 HCMC Decision No 34/586/26.5.2011 HCMC Decision No 35/586/26.5.2011 Ministry of Finance Decision No 1051027/20340/DE-E/2010 Law No 3875 of 2010 Law No 3932 of 2011 Law No 3994 of 2011
Commercial laws and regulations

Law No 2190 of 1920 Law No 3190 of 1955 Law 959 of 1979 Law No 3419 of 26 December 2005 Law No 3853 of 17 June 2010 Joint Ministerial Decision K1-802 of 23 March 2011 Excerpts and POL 1081/18.4.2011
114 ANNEXES
Financial laws
Legislative Decree 1059 of 1971 - Excerpts Legislative Decree 1325 of 1972; Article 2 Law No 1806 of 1988; Article 40
Other laws and regulations

Necessity Law No 2039 of 1939 Royal Decree No 20 of 22 December 1939 - Excerpts Legislative Decree No 3026 of 1954; Article 49 Law No 3329 of 1955; Article 12 Presidential Decree No 331 of 1985; Article 155 Presidential Decree No 503 of 1985 - Excerpts Presidential Decree No 258 of 1986; Article 212 Presidential Decree No 226 of 1992; Article 16 Decision No 623 of 1997; Article 5 Law No 2472 of 1997; Article 5 Law No 3528 of 2007; Article 26 Law No 3693 of 2008; Article 21 Presidential Decree No 9 of 2011 Law No 2830 of 2000 Law No 1587/1950
EOI material
EOI provisions contained in DTCs signed by Greece
ANNEXES 115
Annex 4: People Interviewed During On-Site Visit
Ministry for Finance

Head (competent authority) and representatives, Directorate of International Economic Relations Representatives, Directorate of Tax Audits Representatives, Directorate of Books and Records Representative, Directorate of Operational Planning Representative, Directorate of Income Tax Representative, Directorate of National Legacies Representative, Tax office for Large Enterprises Representative, General Secretariat of Information Systems Representatives, Economic Enforcement Unit
Registry
Representatives, Independent Department of General Commercial Registry, Ministry of Development Representatives, Directorate of S.A., Ministry of Development
Anti-money laundering
Representatives, Bank of Greece Representatives, Hellenic Capital Markets Commission Representatives, Hellenic Bank Association
116 ANNEXES
Others
Representatives, Financial Prosecutor Office Representatives, Hellenic Accounting and Auditing Standard Oversight Board Representatives, Ministry of Justice Representatives, Athens Bar Association Representative, Hellenic Notary Association
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

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Global Forum on Transparency and Exchange of Information for Tax Purposes
PEER REVIEWS, COMBINED: PHASE 1 + PHASE 2,
incorporating Phase 2 ratings GREECE

The Global Forum on Transparency and Exchange of Information for Tax Purposes is the multilateral framework within which work in the area of tax transparency and exchange of information is carried out by 120 jurisdictions, which participate in the Global Forum on an equal footing. The Global Forum is charged with in-depth monitoring and peer review of the implementation of the international standards of transparency and exchange of information for tax purposes. These standards are primarily reected in the 2002 OECD Model Agreement on Exchange of Information on Tax Matters and its commentary, and in Article 26 of the OECD Model Tax Convention on Income and on Capital and its commentary as updated in 2004. The standards have also been incorporated into the UN Model Tax Convention. The standards provide for international exchange on request of foreseeably relevant information for the administration or enforcement of the domestic tax laws of a requesting party. Fishing expeditions are not authorised but all foreseeably relevant information must be provided, including bank information and information held by duciaries, regardless of the existence of a domestic tax interest or the application of a dual criminality standard. All members of the Global Forum, as well as jurisdictions identied by the Global Forum as relevant to its work, are being reviewed. This process is undertaken in two phases. Phase 1 reviews assess the quality of a jurisdictions legal and regulatory framework for the exchange of information, while Phase 2 reviews look at the practical implementation of that framework. Some Global Forum members are undergoing combined Phase 1 and Phase 2 reviews. The Global Forum has also put in place a process for supplementary reports to follow-up on recommendations, as well as for the ongoing monitoring of jurisdictions following the conclusion of a review. The ultimate goal is to help jurisdictions to effectively implement the international standards of transparency and exchange of information for tax purposes. All review reports are published once approved by the Global Forum and they thus represent agreed Global Forum reports. For more information on the work of the Global Forum on Transparency and Exchange of Information for Tax Purposes, and for copies of the published review reports, please refer to www.oecd.org/tax/transparency and www.eoi-tax.org.
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GLOBAL FORUM ON TRANSPARENCY AND EXCHANGE OF INFORMATION FOR TAX PURPOSES

Peer Review Report Combined: Phase 1 + Phase 2, incorporating Phase 2 ratings

ISBN 978-92-64-20565-9 (print) ISBN 978-92-64-20566-6 (PDF)

Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda.

ABOUT THE GLOBAL FORUM 5

About the Global Forum

The tax system

Overview of the financial sector and relevant professions

Hellenic Association of Insurance Companies: www.eaee.gr/cms/eng/uploads/ grmark-i-en.pdf. www.eaee.gr/cms/eng/uploads/grmark-v-en.pdf.

Anti money laundering/combating financing of terrorism legislation

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 21

Compliance with the Standards

22 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 23

A.1. Ownership and identity information

24 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

Companies (ToR 20 A.1.1)

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 25

Information held by government authorities

26 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

SAs and LLCs incorporated prior to 4 April 2011

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 27

28 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 29

30 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 31

32 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

Information held by companies

Information held by service providers

22. 23. 24.

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 33

34 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 35

Bearer shares (ToR A.1.2) LLCs

36 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 37

38 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 39

Partnerships (ToR A.1.3)

40 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

Information held by government authorities Registration

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 41

42 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 43

Information held by partnerships

Information held by service providers

Trusts (ToR A.1.4)

44 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

Information held by trustees

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 45

Information held by service providers

Foundations (ToR A.1.5)

46 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

Information held by government authorities Registration

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 47

Information held by foundations

Information maintained by service providers

48 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

Other relevant entities or arrangements

Enforcement provisions to ensure availability of information (ToR A.1.6) Corporate law

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 49

50 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 51

52 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION

A.2. Accounting records

General requirements (ToR A.2.1)

COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION 53

54 COMPLIANCE WITH THE STANDARDS: AVAILABILITY OF INFORMATION