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Tax-i 140 - Source of Funds Declarations: New Provisions

By the recent law 4571/2018 the current legislation regarding the filing of the Source of Funds

Declaration (S.F.D.) and Declaration of Financial Interests by the liable persons is amended.
The most important amendments on the relevant legal framework, are summarized below:

Liable Persons

➢ The list of the liable persons is re-determined, including, inter alia, the General
Directors of the Ministries, the Editors of electronic and printed media, etc.

➢ It is further explicitly set that the obligation of filing a S.F.D. is further extended to
persons who have entered into a registered partnership with the liable person, whilst
such obligation applies also to separated spouses.

Content of Source of Funds Declarations (S.F.D.)

The content of the S.F.D. is re-determined and it is exceptionally stipulated that:

a) the first annual electronical S.F.D. includes the existing assets (real estate, property, deposits, investments, participation in funds/trusts, cars etc.) on the reference date (i.e. 31/12 of the previous year) as well as their acquisition value, if this is available.
b) the initial S.F.D. includes all existing assets at the time of acquisition of the capacity (not at the time of submission of the S.F.D.), their value and the acquisition method.

➢ The threshold of cash which should be disclosed (not including bank deposits) is increased from 15.000€ to 30.000€, whilst the minimum value of movable assets (paintings, etc.) is increased from 30.000€ to 40.000€.

Time of submission

➢ The Initial S.F.D. is submitted within 90 days from the acquisition of the liable person’s capacity (same provision).

➢ The Yearly S.F.Ds are submitted within 3 months after the expiration of the deadline
for filing the annual income tax returns (same provision).

➢ The S.F.Ds. are submitted annually during the liable person’s tenure and for the next year. For specific categories (e.g. judges, members of parliament, ministers, etc.) the
SFD will be submitted for 3 additional years after the expiration of their tenure/loss of
their capacity.

Exceptionally, non-submitted S.F.Ds and Declarations of Financial Interests

- initials with capacity acquisition during the years 2016, 2017 and 2018 and
- annuals of 2016, 2017 and 2018 (for tax years 2015,2016 and 2017)

will be submitted from 04.01.2019 by 04.03.2019.

➢ Liable persons who have already filed electronically SFDs for years 2016 and 2017 may just confirm them, in case no adjustment is required.

➢ Given that the relevant web application will remain out of order for 2 months after the publication of the law, persons falling for the 1st time in a category of liable persons, according to the provisions of the new law, should file their 1st (initial) S.F.D. within 90 days as from the publication of the law, without counting the period that the web application will remain out of order.

List of liable persons

➢ Yearly, by the end of February, the list of liable persons is filed electronically by the contact persons. The list includes liable persons who acquired, retained or lost their capacity during the previous year. It is noted that the non-existence of liable persons should also be declared electronically by finalizing a “zero” list.

Especially for 2018, the list of liable persons should be submitted by 17.12.2018

In case the contact person omits to file electronically the list of liable persons, imprisonment of at least 6 months is imposed.

Penalties of late/non filing

➢ The SFD may be submitted within 30 days as from the expiration of the relevant deadline, only by prior payment of an administrative fee of 200,00€, in case the liable person submits the SFD to the Parliament Committee and 100,00€, in case of submitting to the Anti-Money Laundering, Counter-Terrorist Financing and Source of Funds Investigation Authority.
➢ Upon lapse of 30 days and prior to the expiration of 60 days, the SFD may be submitted by prior payment of an administrative fee of 800,00€, in case the liable person submits the SFD to the Parliament Committee and 300€ for all other liable persons.

➢ Upon lapse of 60 days or in case of filing an inaccurate or incomplete SFD, a penalty up to 100.000€ and imprisonment may be imposed. The SFD is considered “inaccurate” if the assets declared may not be justified by the liable person’s income.

➢ If the liable person aims to conceal an asset with value exceeding 30.000€, imprisonment of minimum 2 years and penalty ranging from 10.000€ to 500.000€ is imposed.

Audit Deadline and competent Authority

➢ The audit is effected within 5 years as from the end of the reporting year. (The previous law did not provide for a deadline). For specific cases, the audit may be effected until the expiration of the limitation period applicable to crimes.

➢ The audit of the Source of Funds Declaration of Judges and District Attorneys, will be effected by the competent committee of the Parliament. (According to the previous law, the relevant audit was effected by the 3rd unit of the Anti-Money Laundering, CounterTerrorist Financing Authority).

 ➢ The number and the capacity of the Parliament Committee members is re-determined and increases to 11 from 9 by adding 2 judges in its composition.

You can download the pdf file here.

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