State Council of Greece: Tax "sane income" recognized as constitutional

The State Council made a decision according to which for individual entrepreneurs Constitutionally admit the calculation of tax Based on “The alleged (sane) income.”

Plenum State Council (Στε – συμβούλιο της επικρατείας, the Supreme Court of Greece) decided that the definition of the minimum annual tax is “Constitutionally acceptable”.

In particular, the president στε Mikhail Pikrvenos In his statement, he noted that the Plenum στε at a closed meeting by a majority vote recognized the method of determining the minimum annual net income of individual entrepreneurs based on alleged income. However, the taxpayer has the right to dispute his alleged income. He can:

1. Submit an administrative protest (Greek ενδικοφανής προσφυγrma, Andicophanis Prosfigi – an administrative protest) against the act of determining the tax based on the alleged income in Dispute resolution department (Δ.ε.δ. – διεύθυνση επίλυσης διαφορών).
2. At the same time apply to administrative courts.
3. Submit a tax audit request to the tax office (Δου – δημόσια οικονομική υπηρεσία) to which he belongs.

The statement of Mr. Pikrveno regarding the results of the discussion of the cases considered at the Plenum on March 28, 2025 is as follows:

“On April 14 and May 2, 2025, the Plenum of the State Council conducted a discussion of seven cases related to the establishment of the alleged method of determining the minimum annual net income of individual entrepreneurs in accordance with Articles 28A – 28) of the Law 4172/2013 (α΄ 167), with the speakers – advisers to K. Lazaraki (κ. Λαζαράκη) and V. Mosh (β. Μόσχου).

The court rejected the application for the cancellation of the decision α1055/9.4.2024 (β΄ 2284) of the chapter Aaδε (Ανε wedifyάρτητη αρχή δημοσίων εσόδων – independent management of state revenues), published on the basis of paragraph 8 of Article 28a 4172/2013, which determines the procedure for contesting paragraphs 3 and 4 of the same article. In particular, the court by a majority vote ruled:

1. The specified method for determining income based on the alleged income is constitutionally permissible.
2. The taxpayer who wants to challenge his alleged income (paragraph 4 of Article 28a) may simultaneously submit a tax audit request (according to Article 4 of the decision of the chapter Aαδε) and an administrative protest (Greek ενδικοφανής προσφυγrma, monasticanis of the Profigi) in δ.ε. sec. Against the act of determining the tax based on the alleged income (Article 4, paragraph 1, subparagraph β΄). If the protest is rejected, he can apply to the administrative court in accordance with the general provisions of Articles 72 (New) of the Code of Tax Procedures [закон 5104/2024 (Α΄ 58)] and 63 of the Code of Administrative proceedings [закон 2717/1999, Α΄ 97]indicating the same arguments as in the request for verification.

The act of corrective determination of the tax issued after the audit in accordance with Article 5, clause 1, subparagraph β΄ challenged decision is also subject to administrative protest (Greek ενδικοφανής προσφυγή, defhysfigi endofanis), according to the above provisions. In case of deviation of the protest δ.ε.δ., this decision, in accordance with Article 63, clause 7 of the Code of Administrative proceedings, is considered additionally disputed within the framework of the current trial regarding the legality of the act Δ.ε.δ., which was rejected by an administrative protest against the act of determining the tax.

The taxpayer may indicate this subsequent act δ.ε.δ. Additional grounds for the claim that he already indicated in his administrative protest against the act of corrective tax determination.

In fact, this means that the tax takes the right independently determine your income, Based on your costs, movements on the account, or for personal motives of a particular tax inspector.

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