Greece Council of State limits tax statute of limitations

The Council of State (StE) has issued decision 1246/2026, establishing new limits on the ability of tax authorities to impose taxes and penalties for older cases. The ruling reinforces the five-year statute of limitations and declares a twenty-year period for tax evasion cases unconstitutional, citing the principle of proportionality.

Additionally, the court ruled that the transitional provision of Law 4646/2019, which allowed for a ten-year statute of limitations for certain older periods, is unconstitutional due to its retroactive application. This decision specifically impacts tax years 2012 and 2013, as well as tax years 2014 through 2017 in cases of tax evasion.

The court noted that taxpayers should not remain in uncertainty regarding their tax obligations for excessive periods. It emphasized that while tax authorities must have sufficient time for effective audits, the process must remain reasonable and predictable, especially given the availability of modern electronic data and risk analysis tools.