The Resource Council of State Case 435/2017

Council of State Case 435/2017

Council of State Case 435/2017
Council of State Case 435/2017
Judgment by the Greek Council of State, judgment date 15 February 2017. The taxpayer, a tax resident of Russia, declared nil income in Greece from 2007 to 2010. He also filed annual personal income tax returns in Russia from 1994 to 2014. In 2010 he transferred from Greek bank accounts to foreign destinations substantial sums exceeding the income he had declared in tax returns in Russia. This was treated by the Greek tax authorities as income deriving from an unknown source. The Greek Tax Authorities issued a corrective assessment for the income derived in 2010. The taxpayer argued that he was not required to pay tax in Greece on such income under the terms of the Greece-Russia double taxation convention. Article 14(1) of that convention provided that income from professional services was only to be taxed in the state of residence save under conditions which did not apply in this case. Article 21(1) provided that "other income" was taxable only in the state of residence. The Council of State rejected his claim, ruling that articles 14 and 21 are not applicable because the treaty does not apply to income from unknown sources. This means that the treaty does not apply if the regime covering accumulation of wealth deriving from an unknown source or cause applies. Furthermore, the Council of State ruled that article 21(2) of the treaty was not applicable
Citation source
In: International tax law reports. - London. - Vol. 20 (2018), part 3 ; p. 223-258
Geographic coverage
  • Asia
  • European Union
  • Europe
Language note
Baker, P
  • case law
  • individual income tax
  • other income
  • tax treaty
Council of State Case 435/2017

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