Liability of directors of Greek companies for taxes and social security contributions

Liability of directors of Greek companies for taxes and social security contributions

Α. tax obligations (Article 50 of Law 4987/2022)

The individuals who are executive presidents, directors, general managers, administrators, managing directors, authorized to manage and liquidators of legal persons and legal entities, as well as the individuals who exercise the management or administration of a legal person or legal entity, are personally and jointly liable for the payment of income tax, withholding tax, any imputed tax, VAT and ENFIA, imposed to these legal persons and legal entities, regardless of the time of the tax assessment, as well as for interest, fines, surcharges and any administrative monetary sanctions imposed on them, as long as the following conditions are cumulatively met:

1. the above individuals had one of the above qualities either during the operation of the legal person or the legal entity or at the time of their dissolution, or merger or during their liquidation,
2. the tax liabilities became overdue during their service under any of the above qualities.
3. the tax liabilities were not paid or were not attributed to the State due to the fault of the above individuals.

B. insurance obligations (Article 31 of Law 4321/2015)

The individuals who are legal representatives, presidents, administrators, managing directors, authorized to manage and liquidators of legal persons and legal entities, at the time of their dissolution or merger, are personally and jointly liable for the payment of insurance contributions, additional fees, surcharges and other charges owed by these legal persons and legal entities to the Social Security Institutions regardless of the time of their assessment, as long as the following conditions are met cumulatively:

1. the above individuals had one of the above qualities either during the operation of the legal person or the legal entity or at the time of their dissolution, or merger or during their liquidation,
2. the insurance obligations became overdue during their service under any of the above qualities
3. the insurance obligations were not paid or were not attributed to the State due to the fault of the above persons.

C. Criminal liability

The chairmen of the boards of directors, the managing directors, authorized or co-acting advisors, administrators, general managers or directors, as well any individual mandated either directly by law or by private will or by court decision to the administration or management or representation thereof, are considered as perpetrators of tax crimes, if by any act or omission they contributed to their commission.  If all the above individuals are missing, the members of the boards of directors of these companies are considered as perpetrators, as long as they actually temporarily or permanently exercise one of the duties mentioned above.

*             The information is accurate to the best of our knowledge as at the time of writing. We have no obligation to update it. We accept no responsibility against any third party who is not a client of the firm and has not signed the terms of our engagement.