Bulgaria objects to new Greek tax rules in letter to EU

Written by on March 30, 2015 in Business - Comments Off on Bulgaria objects to new Greek tax rules in letter to EU

Bulgaria’s Finance Minister Vladislav Goranov has objected to recent amendments to the Greek tax code in a letter to EU economic and financial affairs commissioner Pierre Moscovici, arguing that the new regulations breached EU law.

Goranov’s letter, posted on the Finance Ministry’s website on March 30, refers to new Greek regulations that impose a 26 per cent tax on all transactions carried out by Greek companies with firms in countries with “preferential tax regimes”, referred to as Law 4321/2015 in the correspondence.

The list includes three EU member states – Bulgaria, Cyprus and Ireland – that have a lower corporate tax rate than Greece.

“It is assumed that all transactions, originating from sources in the three EU countries mentioned intend tax fraud or tax evasion, based again only on the more favourable tax conditions in these member states,” Goranov’s letter said. “Obviously, such taxation reform is discriminatory and disproportionate to the intended goals.”

Bulgaria’s Finance Minister argues that allowing Greece to proceed with the new taxation practice would have “an immense negative impact and would compromise and impair the overall functioning of the EU internal market”.

To read the full story, click here.

(Photo: Clive Leviev-Sawyer)

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