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Code of Books and Records Amended
Proposed legislation on the abolition of the Greek Code of Books and Records has been submitted to and ratified by the Greek Parliament. This is to be partially replaced by a new 'Code of Tax Depiction of Transaction'. Taxand Greece discovers what this new legislation entails.
The main objectives of the new legislation is to rationalise, simplify and modernise fiscal provisions in order to limit
the fiscal obligations of companies. This will reduce the complexity of administrative procedures and the operating costs incurred by companies, as well as to enhance transparency in the relations between the Greek tax authorities and companies.
In the past, lack of formality could lead to the characterisation of a business entity's accounting books as "inaccurate" or "inadequate" and therefore could result in the imposition of exhaustive tax penalties and fines or in some cases to the arbitrary determination of net profits.
As it appears from the corresponding Explanatory Memorandum, the new legislative framework introduced by the "Code of Tax Depiction of Transactions" will disconnect non-compliance from the validity of the company's accounting books.
According to the provisions of the new legislation, the new "Code of Tax Depiction of Transactions" will be applicable from 1 January 2013. It is also noted that the new "Code of Tax Depiction of Transactions" will be further simplified since certain provisions will cease to apply from 1 January 2014. Multinationals should note the newly enacted legislation will probably generate the necessity for changes in the way accounting books are being maintained, as well as in the way fiscal documents are being issued or received in Greece.