Obligations of aided undertakings - Penalties
1. In case of abandonment of the investment at the stage of implementation,
for which the completion time limit, initially specified in the
decision on eligibil-ity, has expired, and the exclusive six-month
time limit of para. 7, article 6 has also expired, without submis-sion
of a request for a further extension, it shall be deemed ipso jure
that the decision on eligibility was never issued, and any paid
grant shall be immediately due and payable in its entirety. In case
that, upon ex-piry of any approved two-year extension period for
the investment implemented, no application is submitted for the
performance of a completion inspection, or ap-plication for additional
extension of the completion time limit, for reasons of proven force
majeure, the competent department shall remind the investment organisation,
by way of a document delivered by court bailiff, that if provable
reasons of force majeure apply, it has the possibility to submit
a relevant request for extension. By way of the same document, the
compe-tent department shall also set a time limit of fifteen (15)
days from the expiry of the above exclusive time limit, within which
the investment organisation shall be obliged to submit a request
for the performance of an inspection for the completion of the investment
In case the organisation shall not proceed to any of the above actions,
it shall be deemed ipso jure that the decision on eligibility was
never issued, and any paid grant shall be immediately due and payable
in its entirety.
2. If new organisations of para. 1, article 2, invest-ments and/or
equipment leasing programs thereof have been made eligible for a
grant and interest sub-sidy and/or leasing subsidy, in accordance
with the rule of para. 2a of the same article, and shall not fall
within the exceptions of para. 3 of the same article, during the
implementation of their investments and/or programs and until the
lapse of five years from the is-sue of the decision certifying the
commencement of their productive operation, are merged or absorbed
by another company or private undertaking constituting an old organisation,
in accordance with paragraph 1, article 2, or absorb another company
or private under-taking, or a branch of another company or undertak-ing,
that also constitutes an old organisation, or a branch that, according
to the aforementioned has been aided, is detached and incorporated
into an old organisation, it shall be deemed ipso jure that the
de-cision on eligibility was never issued, and any paid grant and
interest subsidy and/or leasing subsidy shall be immediately due
and payable in its entirety.
3. If, upon expiry of the equipment leasing term, the equipment
does not become property of the undertak-ing made eligible for the
equipment leasing subsidy, or if the undertaking transfers the equipment
prior to the lapse of a five year period from the issue date of
the decision certifying the commencement of the pro-ductive operation,
the paid leasing subsidy corre-sponding to the specific equipment
shall be due and payable in its entirety ipso jure. The same applies
to cases of contract termination and return of the equip-ment to
the leasing company, and until the expiry of the above five-year
period. The above provisions shall not apply if the equipment transferred
is replaced by another of equal value and same kind, within six
months, on condition that: i) the competent depart-ment shall be
notified prior to the replacement thereof, and ii) within a reasonable
time period from the re-placement, the competent department will
be notified on the relevant data concerning the transfer and re-placement.
4. If the undertaking made eligible for the grant and interest subsidy
and/or leasing subsidy for invest-ments and/or equipment leasing
programs or business plan, for any reason transfers fixed assets
that have received a grant and/or subsidy, during their implementation
and until the lapse of a five year period from the issue date of
the decision certifying the commencement of their productive operation,
it shall be deemed ipso jure that the decision on eligibility was
never issued, and any paid grant and interest subsidy or leasing
subsidy shall be immediately due and payable in its entirety.
The above provisions shall not apply if the trans-ferred fixed assets
are replaced by others of equal value and same kind, within six
months, on condition that: i) the competent department shall be
notified prior to the replacement thereof, and ii) within a rea-sonable
time period from the replacement, the compe-tent department will
be notified on the relevant data concerning the transfer and replacement.
5. An undertaking eligible for the grant and/or inter-est subsidy
and/or leasing subsidy for investments, and/or leasing program,
or business plan, may, within five years from the issue date of
the decision certifying the commencement of the productive operation,
lease the aided investment, either in its entirety, or lease part
of the fixed assets that have been aided, following the approval
of the competent body for the issue of the decision on eligibility.
In case of lease without such approval, the paid grant shall be
due and payable ipso jure, either in its entirety, with regard to
a lease of the entire investment or equipment acquired through leas-ing,
or part thereof, equivalent to the leased part of the investment
or leased equipment.
6. a) If, for any reason, a pause of the productive operation of
the investment and/or equipment ac-quired through grant-aided or
subsidised lease, sub-ject to the provisions of instance (b) below,
is ascer-tained from the date the investment and/or program or business
plan was made eligible, until the lapse of five years from the issue
date of the decision certifying the commencement of the productive
operation, it shall be deemed ipso jure that the decision on eligibility
of the investment and/or equipment leasing program or busi-ness
plan was never issued, and any paid grant and subsidy shall be immediately
due and payable in its entirety.
b) The provisions under instance (a) above, shall not be applicable
in the event of a pause of the productive operation of investments
and/or equipment acquired through leasing, due to partial or total
destruction from fire, flood or other natural events. The obligations
of the organisations of the above aided investments and/or programs
or business plans, concerning the restoration of the destroyed investment
and their pro-ductive re-operation, shall be stipulated by virtue
of decision of the Minister of National Economy.
7. From the issue of the decision on eligibility of the investment
and/or equipment leasing program or busi-ness plan for the grant
and/or interest subsidy, and/or leasing subsidy, until the lapse
of a five year period from the issue date of the decision certifying
the commencement of the productive operation, or the decision certifying
completion with regard to business plans, the total number of stocks
or company shares of the organisations of the above investments
and/or programs or business plans, shall be blocked and may not
be transferred without the approval of the compe-tent body for the
issue of the decision on eligibility, in the following cases: a)
newly established companies, whether these are in the process of
being established, upon submission of the application seeking eligibility,
or they have already been established by that time, aiming at the
implementation of the specific invest-ment, and b) existing companies,
whether these, upon submission of the application seeking eligibility,
are exercising only the activity that will be the object of the
investment, or are exercising other activities, provided that their
own participation in the approved invest-ment, that will derive
from the taxable (extraordinary) reserve, or will constitute an
increase in the capital stock or company capital, shall be equal
to no less than 50% of the company capital existing at the time
of the submission of the application seeking eligibility. The above
may be effected after the submission of the relevant application
to the competent department, on exclusive responsibility of the
organisation and its shareholders or partners, and shall not bind
the judgement of the Advisory Committee, nor the deci-sion of the
Administration, concerning the approval of the transfer application.
In case of stock or company share transfer prior to the submission
of the relevant application, one per cent of any paid grant shall
be re-turned ipso jure.
If a transfer application is rejected, whether this was submitted
prior to or after the transfer, a part of the paid grant equivalent
to the percentage of stocks or company shares transferred, shall
be returned ipso jure. The obligation to return the paid grant shall
equally lie upon the shareholders or partners, who transferred their
stocks or shares. The above obliga-tion not to transfer stocks or
company shares without the approval of the competent body, shall
be included in the company statutes as a term which may not be deleted
prior to the lapse of a five year period from the issue date of
the decision certifying the commence-ment of the productive operation
or the decision on completion, with regard to business plans.
The provisions of this paragraph shall not apply to undertakings
listed in the Athens Stock Exchange, or in the listing process,
from the moment their stocks are introduced in the Athens Stock
Exchange for trad-ing and for the entire duration they are listed.
Fur-thermore, the consequences of this paragraph shall not be imposed
in case of transfer due to inheritance.
8. The expediting of the auctioning or any kind of liquidation of
an undertaking, made eligible for the provisions of Law 1262/1982,
Law 1892/1990 or these presents, prior to the lapse of a ten-year
period from the issue date of the decision certifying the com-mencement
of the productive operation, with regard to investments of Law 1892/1990,
or Law 1262/1982, or a five-year period from the issue date of the
decision certifying the commencement of the productive opera-tion,
with regard to investments of these presents, or at any time prior
to its completion, shall be null and void if the relevant act of
attachment and the auction program or the act of appointing a liquidator
have not been communicated to the Private Investments De-partment
of the Ministry of National Economy, within twenty (20) days from
being drawn up.
9. A special legal office shall be created in the Pri-vate Investments
Department in order to monitor the above cases.
10. The manner and details for the control of con-formity to the
provisions of these presents, and of the act on eligibility for
the provisions of these presents, of undertakings which have received
a grant or subsidy, or have in any way been aided, based on the
provi-sions of these presents, shall be stipulated by virtue of
decisions of the Minister of National Economy.
11. i) From the certification date of the commence-ment of the investment's
productive operation and for a five-year period, during which the
undertaking shall be obliged to maintain a certain number of created
new permanent jobs provided for in the decision on eligibility,
the grant-aided undertaking shall be obliged to submit, within one
(1) month from the end of each semester, starting from the completion
of the invest-ment, a statement of the personnel employed during
the previous six-month period, attested by the local competent labour
inspection authority of the Ministry of Labour, to the competent
department of the Ministry of National Economy as well as the regional
ii) In case a reduction is ascertained in the number of created
new permanent jobs, as specified in para.2, article 6, and provided
that the grant received in rela-tion to the existing jobs exceeds
the amount of 15 mil-lion drachmas per job, part of the grant shall
be re-turned in order to maintain the above grant amount per job,
by virtue of decision of the Minister of National Economy, according
to the provisions of the Code of Public Revenue Collection.
iii) Revocation of the tax allowance and payment of taxes due.
(a). The tax-free reserve created under the provi-sions of these
presents, shall be added to the under-taking's profits and shall
be taxable in the accounting period during which:
1. Fixed assets were sold before the lapse of five (5) years from
their purchase, or machinery of which the right to use was acquired
through leasing was no longer used and the contract was terminated,
for an amount of the tax-free reserve equal to the value of such
fixed assets. This provision shall not apply, if the undertaking
replaces these fixed assets with new ones of at least equal value,
conforming to the condi-tions of the aided expenditure of the investment
or leasing, specified in these presents, within six (6) months from
the end of the accounting period in which the sale of the assets
or the discontinuity of leasing thereof took place.
2. An amount of the tax-free reserve shall be distrib-uted or withdrawn,
for such amount.
3. The private undertaking or the company is dis-solved due to death
of the owner or a member of the company.
(b) Additionally, the tax-free reserve formed shall be taxable:
1. In case of retirement of a partner, in his name, on the date
of retirement and for the amount falling to the share thereof, based
on the percentage of his partici-pation in the company.
2. In case of a transfer of company shares, in the name of the person
implementing the transfer, on the date of transfer and for the amount
falling to the share thereof, based on the percentage of his participation
in the company.
3. In case of a withdrawal from the reserve by a partner or the
heirs thereof, in the name of the person making the withdrawal,
on the date of withdrawal, and for the amount withdrawn.
4. In case of death of a partner and provided that the company continues
its lawful operation only among the other partners, in the name
of the heir and for the amount corresponding to him, based on the
percent-age of his participation in the company.
5. In case the equipment shall not become the prop-erty of the undertaking,
after the expiry of the lease.
(c). In case of non completion of the investment and/or failure
to acquire the leased equipment within the five-year term specified
in para. 27, article 6, the undertaking shall be obliged to submit
additional in-come tax returns for each financial year, and for
the segment of the profits that were exempted from taxa-tion due
to the formation of a tax-free reserve.
The above tax returns shall be considered overdue, and the obligors
submitting them, or failing to submit them, or submitting them incorrectly,
shall be subject to the penalties of Law 2523/1997 (Government Ga-zette
179 A'). The total amount of income tax or addi-tional tax due according
to the tax return under this paragraph, shall be payable in five
(5) equal monthly instalments, of which the first shall be payable
upon submission of the tax return, and the remaining four, on the
last business day of the four months following the submission of
the tax return.
12. Grants, interest subsidies and leasing subsidies provided for
in these presents, shall be returned ac-cording to the procedure
for the collection of public revenues, while the amounts returned
shall be in-creased by the amount of legal interest accrued from
the date of their payment.
The relevant payment receipts of grants from the State, constitute
documents for the certification of debts by the Public Revenue Department.
For the col-lection of debts to the State, the provisions on the
col-lection of public revenue shall apply.