Liability of a Legal Representative of a Foreign Company Without Permanent Establishment in Greece
- The Story
Our law firm successfully represented a client before the Administrative Court of Athens, contesting an individual tax notice amounting to €2,872,721.61. The case revolved around the issue of joint liability for the legal representative of a foreign company without a permanent establishment in Greece. Our argument emphasized that merely holding the position of a representative does not establish joint liability; rather, substantive involvement in the company’s management is required.
- The Outcome
The Court ruled in favor of our client, canceling the individual tax notice. It recognized that the legal representative of a foreign company without a permanent establishment in Greece does not bear joint liability under Article 50 of the Tax Procedure Code, as they do not exercise actual management but serve as a formal representative only. This decision provided significant relief to our client and underscored the legal protections available to representatives acting in a limited capacity.
Successfully contested an individual tax notice of €2,872,721.61, saving the client from substantial financial liability.
Established that joint liability requires substantive involvement in management, not merely holding the title of representative.
Reinforced the rights of legal representatives with limited roles, providing a critical precedent for similar cases.
