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European CommissionThe Second Economic Adjustment Programme for Greece. Fourth ReviewΡar /ΡageMoU2.1.7.iMoU2.1.7.iiMoU2.1.7.iiiMoU2.1.7.ivMoU2.1.7.ivMoU2.1.7.ivAction Deadline Comments StatusThe Authorities: i. will propose a plan to prepare theremaining (not in the privatisation pipeline) real estateassets owned by the Hellenic Republic, and managed byETAD, for securitisation or direct privatisation. Currentlysome 80,000 public properties are under the managementof ETAD. Additional properties are under management bydifferent ministries. The status of these properties in manyinstances is unknown, or unverifiable. This implies wasteand limits possibilities for developing public property andderiving income from it. This plan should contain analysisof the status of properties and the steps needed to quicklyprepare properties for exploitation by the State.Contextually and based on this plan, ETAD will presentproposals to improve the governance, effectiveness andability to carry out these tasks by ETAD, to be completedin stages according to the plan.The Authorities will bring all remaining (non-operational)properties (e.g., those under the Ministry of Defence,Agriculture) under the management of ETAD.The Authorities will prepare a first progress report by June2013 on the numbers of properties by Ministry/PublicEntity, the nature, state and of these properties andproviding detailed information, where applicable, to itscurrent use;The Authorities will prepare a second progress report withthe number of properties already transferred to ETAD.The Authorities will prepare a third progress report withthe number of properties already transferred to ETAD.November2013November2013December2013June 2013August 2013October 2013The final action plan, that includes EC/ECB/IMF'scomments, was approved by ETAD's Board.The final action plan, that includes EC/ECB/IMF'scomments, was approved by ETAD's Board.2About 2.000 non-operational assets out of 16.000properties that were identified were brought underthe management of ETAD. The remaining 14.000operational real estate assets consist of 2.500archaeological areas/sites, 4.000 of traininfrastructure (GAIOSE), 1.800 offices of socialwelfare, 1.000 of defence and security services(army sites & police stations), 2.000 of MoH(hospitals) and 2.500 of Ministry of Education(Schools, Universities).Relevant progress report was delivered toEC/ECB/IMF at end-June which did not have acomplete directory with all Ministries' propertieswhich are barely or not at all exploitable so as to betransferred to ETAD for exploitation.A list was submitted to EC/ECB/IMF in November,with the assets per ministry that had been identifieduntil then.A list was submitted to EC/ECB/IMF in November,with the assets per ministry that had been identifieduntil then.Observed.Observed.Observed.N/AObserved.Observed.MoU2.1.7.ivMoU2.1.8MoU2.1.9MoU2.1.10MoU2.1.11MoU2.1.12The Authorities will prepare a final progress report withthe number of properties transferred to ETAD.The Authorities will ensure that there will be no transfer orwithholding of any real estate assets, without priorconsultation and agreement with the HRADF and theEC/IMF/ECB, to entities other than the HRADF, includingto municipalities and the recently established pension fundSPV or other dedicated legal entities, or until such time asthe assets necessary to supply the privatisation plan havebeen secured.The HRADF, drawing in particular from a report to beprepared by the ESM, will assess the possibility of raisingadditional revenues, or bringing forward future receipts,from the private sector, with a focus on internationalinvestors, by means of securitisation of assets, through theexploitation of assets not yet included in its privatisationplan and specified in paragraph 2.1.9.The HRADF will continue to be tasked with selling assetsas quickly and effectively as possible. In particular, therewill be no further political review once an asset has beentransferred to the HRADF.The HRADF will publish quarterly reports on its steps tofacilitate privatisations, financial accounts, including aprofit and loss statement, a cash flow statement, and abalance sheet, no later than 60 days after the conclusion ofevery calendar quarter.Securing privatisation receipts which, cumulatively sinceJanuary 2011, should be at least EUR 1.6 billion by end-2012, EUR 3.1 billion by end-2013, EUR 6.5 billion byend-2014, EUR 7.7 billion by end-2015, EUR 11.1 billionby end-2016.2.2 Tax policy reformMoU2.2.aMEFP(6)The Gonernment will adopt legislation to introduce a newIncome Tax Code that will simplify the existing law,increase its transparency, and remove ambiguities, whilstallowing easier administration, encouraging taxcompliance, and ensuring more robust revenue through thecycle. The new income tax code will reduce filingrequirements for pay-as-you-earn taxpayers and those whoreceive investment income, consolidate cross-bordermerger and reorganization provisions, and introduce antiavoidanceprovisions to combat international taxavoidance.January 2014 Final report was submitted on January 23rd, 2014 Observed.ContinuousContinuousContinuousQuarterlyContinuousPrior todisbursementOngoing procedure.Ongoing procedure.Ongoing procedure.Q3 2013 report was published in December 2013.Report for Q4/2013 was published on 12-3-2014.It is included in art. 1-72 of the Omnibus bill votedon 17/7/2013 (GG 167/A/23-7-13). A provision wasalso included (art. 46) exempting HRADF fromincome tax.Observed.Ongoing.Observed.Ongoing.Observed.Ongoing.Observed.Ongoing.Observed.80
ANNEXΡar /ΡageMoU2.2.bAction Deadline Comments StatusThe Gonernment will introduce legislation to Parliamentfor a new Tax Procedures Code (TPC) to enter into forceby January 1st 2014. The new TPC consolidates andstreamlines provisions existing in current legislation, andfills legislative gaps in enforced collection methods,requirement for mandatory data provision to the taxauthorities, interest and penalties, and internal reviewprocedures. This code should reduce the costs ofadministration and compliance and incorporate proceduralreforms in all major administrative areas that are necessaryto support modern tax administration (e.g., tax filing, auditand penalties, enforcement powers and debt collection).Prior todisbursementThe provisions are included in articles 1-67 of Law4174 (GG 170/A/26-7-2013).Observed.MEFP(6)Adopt a new tax procedures code (TPC). July 2013The provisions are included in articles 1-67 of Law4174 (GG 170/A/26-7-2013).Observed.MEFP(7)We will establish a working group in July consisting ofstaff of the revenue department of the MoF, GAO, and theGSPR with a mandate to develop a framework for the newproperty tax and identify needed actions to ensure adequatecollection of the new tax.July 2013The relevant MD was published (ΑΔΑ ΒΛ 4ΥΗ-ΛΞ4).Observed.MEFP(6)Establish a working group to implement the TPC. July 2013 The working group has been established. Observed.MEFP(6)Develop a project plan for TPC implementation. August 2013The project plan has been approved byEC/ECB/IMF.Observed.MEFP(6)We will amend legislation to consolidate domestic mergerand reorganization provisions into the income tax code.September2013Relevant provisions are included in Law 4223 (GG287/Α/31-12-2013).Observed.MEFP(6)We will review further and amend as necessary theprovisions concerning withholding of employment incomeand the advance payment of business taxes, as well asprovisions necessary to ensure consistency between theITC and TPC.September2013Relevant provisions are included in Law 4223 (GG287/Α/31-12-2013).Observed.MEFP(6)Adopt all necessary secondary legislation to support timelyimplementation of the Income Tax Code.October 2013Issuance of another 2 MDs is pending. The actioncompletion was rephased.Pending.MoU2.2.cMEFP(7)The Government will open a E9 filing period forsubmitting updated information on land and real estateassets.Prior todisbursementThe relevant application opened on 18/7/2013.Observed.MEFP(7)Complete the collection of updated comprehensiveinformation on tax payers' land and real estate assets (formE9).September2013The collection of information has been completed.Observed.MEFP(7)MEFP(7)MoU2.2.1MoU2.2.2MEFP (6,8)MoU2.2.3MEFP(6)(Table4)We will issue by end-August a time-bound action plan thatidentifies immediate steps and resources needed toimprove property tax collection rates.We will fully align property assessment values withmarket values. To this end, by end December 2013 we willdevelop a medium-term reform plan that outlines actionsneeded:(i) by January 2015, to adjust the zone prices to reflectmore accurately real estate market conditions and tochange the tax subject (individual properties rather thanaggregate holdings by individuals or holdings of propertyrights); and(ii) by January 2016, to align the property assessmentvalues with market values.The Authorities submit proposals for further simplificationand improvement of the Code of Tax Recording ofTransactions (formerly code of books and records) andcorresponding amendments required in the commercial andaccounting legislation in order to come into effect by1/1/2014.Amendments needed to the ITC in covering investment taxincentives will be completed. The reforms will replaceexisting tax incentives with standard tax incentives such asan investment allowance, an investment tax credit, and anaccelerated depreciation deduction. We will quantify taxincentives provided as tax expenditures under the new lawand record them as budget allocations starting with the2014 budget to enhance transparency and control revenuelosses.To ensure that the TPC will be fully implemented byJanuary 2014, the Government will adopt all secondarylegislation necessary to support implementation(structural benchmark).August 2013December2013October 2013September2013October 2013The action plan was submitted to EC/ECB/IMF on20/8/2013 and approved.Τhe medium-term reform plan was sent to IMF. Theaction completion was rephased in the new MEFPtext.The action wording changed and according to theupdated MoU text it should be complete by end-April 2014.Relevant ITC amendments are included in Law 4223(GG 287/Α/31-12-2013). New amendments areincluded in Law 4254 (GG 85/A/7-4-2014)Changes to TPC are included in Law 4223 (GG287/Α/31-12-2013). More changes to TPC areincluded in Law 4254 (GG 85/A/7-4-2014)Observed.Pending.N/AObserved.Observed.81
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OUTLINE OF THE REPORTEXECUTIVE SUMM
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LIST OF GRAPHSGraph 1. Economic cli
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ACKNOWLEDGEMENTSThe report was prep
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European CommissionThe Economic Adj
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1. INTRODUCTION1. INTRODUCTION1. Th
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2. MACROECONOMIC AND FINANCIAL DEVE
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2. Macroeconomic and financial deve
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Chart 3Graph 2.3. Exports of goods
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European CommissionThe Second Econo
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ANNEX 2: MACROECONOMIC FORECASTANNE
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ANNEXTable B1: USE AND SUPPLY OF GO
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ANNEXTable C1: FISCAL ACCOUNTS AND
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ANNEX 3: UPDATED PROGRAMME DOCUMENT
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OCCASIONAL PAPERSOccasional Papers
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No. 46No. 47No. 48No. 49The Western
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No. 80 2011 Pre-accession Economic
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No. 119No. 120No. 121No. 122Possibl
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No. 1582013 Economic and Fiscal Pro
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