Council of State extends tax audit statute of limitations to 10 years

A decision by the Council of State (StE) has clarified the conditions under which the statute of limitations for tax audits in Greece can be extended from five to ten years. The ruling, decision 365/2026, stems from a case involving a company facing significant VAT discrepancies, additional taxes, and penalties for the years 2004 and 2005 due to the use of fictitious tax documents.

The company argued that the case was already time-barred, as the audit report from the Financial Crimes Investigation Unit (SDOE) was prepared after the standard five-year period had elapsed. The company contended that because SDOE is part of the state tax mechanism, its findings should not be classified as ‘supplementary evidence’ that could extend the deadline.

However, the Council of State rejected this argument. The court ruled that an SDOE report can, under specific circumstances, constitute ‘supplementary evidence’ even if it is drafted after the initial five-year period. This allows the tax administration to extend the statute of limitations to ten years for cases where such information could not have been known to the authorities earlier.