Worldwide transfer pricing reference guide 2014

Greece (continued)
APA opportunity
The new Tax Procedures Code provides the possibility of an APA from 1 January 2014. An APA will cover any relevant criteria used for
the determination of the intra-group pricing.
These criteria mainly include the transfer pricing method, the comparable data to be used and any relevant adjustments to be made as
well as the critical assumptions under which the transfer pricing methodology approved will remain valid.
An APA term cannot exceed four years and a retroactive effect will not be possible.
Expected reaction to OECD Report on BEPS
The new Tax Procedures Code introduces a general tax anti-avoidance rule for the first time in the Greek tax law. The rule, whose
application scope seems rather broad, seeks to capture cases where taxpayers make use of artificial structures without any underlying
commercial substance and that have been implemented for tax avoidance purposes. This leads to the generation of tax advantages.
In cases where the rule is deemed applicable, the authorities may impose taxes while disregarding the artificially created structure.
Indicative criteria in order for an arrangement to be considered as artificial are included in the new provision, such as arrangements that
are not in line with ordinary business practices and tax benefits that are not proportionate to the risks assumed.
Apart from the aforementioned, there has been no reaction on the OECD Report on BEPS from the Greek tax authorities.
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