GREECE Law and Practice Contributed by: John C. Dryllerakis, John Papadakis and Nikos Kalantzis, Dryllerakis Law Firm
Dryllerakis Law Firm 5 Chatzigianni Mexi Street, Athens, GR 115 28, Greece Tel: +30 211 000 3456 Email: lawoffice@dryllerakis.gr Web: dryllerakis.gr
1. Sources and Principles 1.1 Domestic Sources of International Tax Law The sources of international tax law in Greece are determined by a constitutionally structured hierar - chy of norms comprising the Constitution, European Union law, ratified international agreements, domestic legislation, administrative guidance and judicial inter - pretation. The constitutional framework is foundational. Article 78 of the Greek Constitution enshrines the principle of legality in taxation, requiring that the essential ele - ments of any tax be established by formal statute. Article 4 (5) establishes the principle of equality in public burdens according to ability to pay, while the general principle of proportionality also applies in tax matters. Of particular importance for international taxation is Article 28 (1), which provides that international con - ventions, once ratified by statute and entered into force, form an integral part of domestic law and prevail over any contrary statutory provision. Consequently, double taxation treaties (DTT) and other ratified tax treaties have supra-legislative force in the Greek legal order, although they remain subordinate to the Con - stitution. European Union law constitutes a distinct and bind - ing source of international tax law. As an EU Member State, Greece is bound by the Treaties, secondary leg - islation and the jurisprudence of the Court of Justice of the European Union. EU law enjoys primacy over conflicting domestic provisions and significantly influ -
ences the design and interpretation of Greek interna - tional tax rules. Administrative guidance is issued by the Independent Authority for Public Revenue (AADE) in the form of cir - culars, interpretative guidelines and other instructions concerning the application of domestic tax law and tax treaties. Such instruments are binding on the tax administration but do not formally bind the taxpayers nor the Courts. Judicial interpretation plays a central role in shaping international tax law in Greece. The Council of State (Supreme Administrative Court) is the highest judicial authority in tax matters and has developed substan - tial jurisprudence on the interpretation of treaty pro - visions, the interaction between domestic law and DTAs, the application of anti-avoidance principles and the impact of EU law on direct taxation. In interpreting tax treaties, Greek courts frequently rely on the OECD Model Convention and its Commentary as persuasive interpretative materials, in accordance with the prin - ciples reflected in the Vienna Convention on the Law of Treaties. Greece maintains an extensive network of double taxation treaties, numbering 58 treaties in force. The structure and wording of Greek DTT generally follow the OECD Model Convention, particularly with respect to provisions on permanent establishment, business profits, associated enterprises, dividends, interest, royalties and exchange of information. 1.2 Hierarchy of Sources In Greece, domestic and international sources of tax law are hierarchically structured and their relationship
170 CHAMBERS.COM
Powered by FlippingBook