Europe calls for change to Greek shipping taxes

Brussels on 21 December sent a series of proposals to Athens that Greece is expected to adopt so the country’s law complies with European rules on equal taxation in maritime transport, or else face court action regarding illegal subsidies to shipping. The demands will change Greece’s existing shipping tax system completely, without exempting oceangoing shipping companies currently taxed based on each ship’s tonnage. The EC said it was concerned the Greek tonnage tax system was not well targeted and benefits the shareholders of both shipping companies and other related parties, beyond what is permitted. Companies, which manage merchant vessels such as dry bulk carriers, and tankers can only retain their privileged status if they do not reduce the share of their fleet under EU flags, in a bid to stop companies from resorting to registers of convenience. The EC also maintains said preferential tax treatment should be removed for the Greek cluster’s all-important services sector like insurance intermediaries, maritime brokers and other maritime intermediaries as well as the shareholders in shipping companies, arguing they do not conduct genuine maritime transport activities.