Press Release: Direct Taxation: Commission requests Greece to amend its tax provisions on tax deductibility of certain categories of consumer expenditure

The European Commission sent on 28 January 2010 Greece a formal request to amend its rules which only allows a tax deduction of certain types of consumer expenditure if it is incurred in Greece, and only allows Greek tax residents to carry out such a deduction. This effectively excludes non-residents from the deductions, even if they obtain the major part of their global income in Greece. This request is in the form of a reasoned opinion, the second stage of the infringement procedure under Article 258 of the Treaty on the functioning of the European Union (former article 226 of the EC treaty). If Greece does not amend its law within two months, the Commission may refer the case to the Court of Justice.