Joint Liability Of The “Administrators” Of Legal Entities

By virtue of the Circular No. Ε.2173/ 2020 of the Independent Authority of Public Revenue it is clarified inter alia that article 50 of L. 4174/2013 (Code of Fiscal Procedure), hereinafter the “Regulation”, which provides -under certain prerequisites- the personal and joint liability of the “administrators” of legal entities (e.g. executive Presidents, administrators, CEOs, liquidators etc.), regarding the payment of income tax, withholding tax, any attributable tax, VAT, and Unified Real Estate Property Tax (“ENFIA”) due from the legal entities, refers to two (2) categories of individuals, and in particular: Those who bear a specific title (e.g. CEO), as well as those considered to exercise “de facto” the management or administration of the company, irrespectively of their title (or capacity). Furthermore, as illustrated by the Tax Administration (Ministerial Circular Νο. 1103/2004), the capacities specified in the Regulation are considered acquired upon acceptance by those individuals of their appointment, meaning that merely the appointment does not suffice. Finally, as far as the joint liability of a legal entity’s President is concerned, it is clarified that same applies solely to Presidents performing executive tasks (executive President), and hence not to all Presidents indiscriminately, as provided under the previous state of legislation.