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For the fiscal years that have not been inspected by the tax authorities (as reported in the above table), there
is a possibility of additional tax imposition. Therefore the Group assesses, on an annual basis, the contingent
liabilities regarding additional taxes from tax inspections in respect of prior years andmakes relevant provisions
where this is deemed necessary. The Management assesses that apart from the recorded provisions which as
at 31.12.2013 amount to € 2,5mil., any tax differences that may arise in the future will not have a material
impact on the financial position, results and cash flows of the Group.
Starting with the year 2011 and in accordance with paragraph 5 of Article 82 of Law 2238/1994, the Group
companies whose financial statements are audited by mandatory statutory auditor or audit firm, under the
provisions of Law 2190/1920, are subject to a tax audit by statutory auditors or audit firms and receives annual
Tax Compliance Certificate. In order to consider that the fiscal year was inspected by the tax authorities, must
be applied as specified in paragraph 1a of Article 6 of POL 1159/2011.
For the fiscal year 2012, the Group companies which were subject to tax audit by statutory auditors or audit
firm, under para.5 Article 82 of Law 2238/1994, received a Tax Compliance Certificate free of disputes.
For fiscal year 2013, the tax audit which is being carried out by the auditors are not expected to result in a
significant variation in tax liabilities incorporated in the financial statements.
In the meanwhile, for the parent company Mytilineos S.A and for the fiscal years 2007-2010 the tax audit is
being carried out by the relevant authorities of Ministry of Finance.
The income tax recognized in the Company and Group statements of comprehensive income for the financial
year 2013, was mainly affected by income tax rate changes, according to law requirements 4110/2013 and
4172/2013,that resulted into a total deferred tax asset of €16.2 million for the Group and a total deferred tax
liability of €10.5 million for the Company.
Other Contingent Assets & Liabilities
On 27/7/2011, the Greek Government, via the Ministry of Environment, Energy and Climate Change, announced
to ALUMINIUM S.A. SA, a subsidiary of the Group, the decision of the European Commission finding the
difference between the energy sale price imposed on Aluminium S.A. by PPC in application of the high voltage
regulated tariff (A-150) and the price arising from the application of the Contract of 1960 for the period from
January 2007 to March 2008, in application of a decision of interim measures of the Single-Member First
Instance Court of Athens claiming that the Contract of 1960 has not expired and ordering the return of the
tariffs to the framework of the said contract, discordant with the Community state aid rules. The said difference
between the two tariffs, the recovery of which is asked by the European Commission with its above decision,
amounts to €17.4 million.
The arguments of the European Commission focus on the following:
i) Selective application of the “preferential tariffing” only for Aluminium S.A..
ii) The Commission believes that the seller (PPC) had no right to charge “reduced rates”. Taken into account
that PPC declined the extension of the 1960 Contract, there are reasonable grounds (for the Commission)
that the extension of the agreement secured an advantage given that it did not correspond to the ‘usual
rate” for the big industrial consumers.
iii) Finally, the commission considers that this tariffingmethod distorts competition and affects the transactions
between member states, because the preferential tariffing was used in a company active in sectors whose
products are widely traded among member states.
According to the Management, the EC decision on the recovery of the amount of € 20.3 million (€ 17.4 million
