Council of State rules tax evasion statutes of limitations unconstitutional

The Greek Council of State (StE) has ruled that the 20-year and 10-year statutes of limitations for imposing tax penalties due to tax evasion are unconstitutional. Following decision 1246/2026, the standard five-year statute of limitations will apply in these cases.

The court found that the 20-year provision violated the constitutional principle of proportionality. Additionally, the 10-year provision—introduced via a 2019 transitional regulation—was deemed unconstitutional because it attempted to retroactively extend the audit period for the 2013 tax year, violating Article 78 of the Constitution.

This ruling significantly impacts the Independent Authority for Public Revenue (AADE), which must now operate within a stricter five-year window for many tax evasion cases. The decision creates a legal precedent for taxpayers who were previously subject to audits based on the extended timelines, particularly those involving the 2012–2017 tax years.