Greece - Joint Liability of Shareholders for Taxes Owed by a Corporation: The New Greek Rule
- E.I. Stavropoulou
- European Taxation, 2016 (Volume 56), No 10
- 14 September 2016
This note examines a new rule imposing personal liability on shareholders for the outstanding taxes due by their corporation, in particular, whether the rule is efficient as a means of controlling opportunistic behaviour. As the new rule disregards the fundamental principle of limited liability, it has far-reaching implications for equity investment. In this regard, the note considers the potential cost of the rule and critically assesses the adequacy of legal safeguards provided for by the legislator.