The dispute concerned various expenses deducted in ΧΑΜΙΩ ΑΒΕΕ’s declared taxable profits for 2013.
The tax authority had disallowed several of these, the most substantial being fees for “management services” allegedly rendered under intra-group agreements.
The Administrative Court of Appeal upheld the assessment, leading ΧΑΜΙΩ ΑΒΕΕ to file an appeal with the Supreme Administrative Court.
In its appeal, the company argued that the tax authority had failed to demonstrate that the disputed expenses were unproductive and that the court had unlawfully shifted the burden of proof to the taxpayer, particularly concerning the management service fees.
Judgment
The Supreme Administrative Court rejected the appeal and upheld the judgment of the lower court.
It ruled that the burden of proving the deductibility and productive purpose of the expenses rested with the taxpayer. In the Court’s view, the invoices and related contracts for the management services lacked adequate specificity regarding the nature, timing, and valuation of the services provided. This lack of clarity was deemed especially significant given the affiliated nature of the contracting parties. The supporting documentation submitted—such as contracts, client lists, and travel data—was considered insufficient to establish the required link between the expenses and the company’s business activity.
Click here for English translation
Click here for other translation