Is the transformation of the global tax system an opportunity for Greece to modernize its taxation framework and lay the foundations for a better future?
Historically tied to economic trends, taxation now intersects with social developments. The international tax system is targeting profit shifting and saw significant progress with the EU’s adoption of Pillar II in 2023, signalling a push towards a global 15% minimum tax, despite the slower pace of implementation in other key jurisdictions.
In these complex times, multinational enterprises find themselves grappling with amplified reporting and compliance obligations across jurisdictions, as tax considerations become integral to broader ESG strategies. The advent of generative AI further complicates matters, promising automation that could streamline data management, reporting, and tax audits, albeit with lingering questions about its objectivity.
Having regard to this momentum, the pivotal importance of tax strategy arises. Looking ahead, the evolving landscape of tax consultancy demands a proactive approach from professionals. Recognising tax’s pivotal role in business sustainability and governance, there is a growing expectation for tax advisors to shape strategic initiatives from inception to execution. Businesses vie for the mantle of tax consciousness as part of their broader ESG commitments, underscoring tax’s significance, beyond mere compliance, as a competitive advantage.
While globally there is constant change toward a fairer and more data driven tax system, Greece’s has long aimed at aligning with international paradigms. From a legislation perspective, international tax rules and interpretative guidelines issued by the OECD in all areas of taxation along with EU Directives dominate the Greek tax system to a large extent, as internationally originated legislation appears to take ground over domestic. Yet it is also high time for Greece to take domestic measures against tax evasion on the one hand and to modernize its tax administration and tax audit systems on the other. It is in this context that initiatives such as the myData fiscal platform have been launched in recent years. At the same time, efforts to entice foreign investment through different types of incentives and reforms to enhance tax certainty further elevate Greece’s appeal to investors. This is especially true in sectors such as energy and tourism, coupled with burgeoning industries such as technology and pharmaceuticals, while the infrastructure and construction sectors are also expected to flourish, with major projects underway.
One should not fail to mention the judiciary’s role, exemplified by landmark decisions addressing double taxation and audit prescription, toward a higher level of confidence in Greece’s tax environment. It is in this context that one reflects on the challenges facing tax practitioners in Greece. While it has always been difficult for its own reasons, in this momentum, and with the prospects facing Greece, tax consultants are also in front of an opportunity to address and implement the international changes towards a better tax environment that will further reinforce the country’s much needed economic growth. In a socially conscious and fair taxation system, one could say that Greece is well positioned to address a coherent tax system in line with international trends that does not create concerns raised by low tax jurisdictions. The opportunity should not be missed to further modernise the country’s tax framework, ensure tax certainty, reduce bureaucracy, and foster transparency and collaboration among stakeholders, laying the groundwork for a more progressive future.
