AADE

The information in regards to the imposition of a tremendous on H&M, with the parallel closure of the shop in Syntagma for tax violations, by the choice of the AADE, lately exploded like a bomb in the marketplace.

Yesterday’s announcement by the Unbiased Authority in regards to the imposition of latest fines, and the closing of 4 different multinational shops for 48 hours in numerous components of Greece (Glyfada, Volos, Rhodes, Kalamata) made a fair higher sensation for the very same purpose: the issuance however non-transmission of receipts to AADE.

“What is occurring with H&M in Greece?” many puzzled, and never with out purpose. The questions raised are many and important. Primarily as a result of it’s a multinational large with a presence in 78 markets, over 4,800 shops and greater than 100,000 full-time staff worldwide.

And naturally with a robust presence in our nation as nicely, with 36 gross sales factors and over 1,000 employees (2022 information) and vital progress. Within the monetary 12 months of 2022 (it’s the final information out there) it confirmed a turnover of 182.8 million euros, recording a rise of 49.43% in comparison with 2021 whereas on the identical time it introduced income (after taxes) of three.75 million euros in opposition to losses 6, 63 million euros in 2021.

How can a multinational of such scope not adjust to the home tax regime? And mainly flout their legal guidelines?

In actual fact, for the time being when it proclaims that it advocates excessive human values, as it’s characteristically said within the monetary statements for the 12 months 2022 that “it’s guided by sturdy values ​​primarily based on the elemental respect of the person, his uniqueness and the assumption within the potential of individuals to make use of the their initiative”.

Virtually 200,000 receipts weren’t forwarded

The questions are made all of the extra urgent by the size of the breach. It’s attribute that the H&M retailer in Volos had not forwarded 125,000 receipts within the final three years (!), with a internet worth of two.4 million euros, plus VAT of 562,000 euros.

The length of the violation was simply as lengthy within the different shops that had been caught violating the legislation. For instance, 33,800 receipts had not been forwarded to the Glyfada retailer from 24/01 to 24/06, with a internet worth of 835,000 euros, plus VAT of 201,000 euros!

Additionally, 12,600 receipts had not been forwarded to Kalamata from December 2023 to June 2024, with a internet worth of 263,000 euros, plus VAT of 63,000 euros.

In complete, nearly 200,000 receipts, value greater than €5 million together with VAT, had not been forwarded.
They had been caught with the “goat on their again” and never a phrase

Questions additionally come up in regards to the perspective of the corporate’s administration. And particularly its response, when the corporate was “caught with the goat on its again”.

With chosen leaks within the press and never with an official announcement as he ought to have performed from the primary second and made certain to ship it to each media outlet and to the final nook of the nation he replied that he was knowledgeable in regards to the case from press stories (!), babbling on the identical time, how the “downside” will likely be tackled.

And at the moment, regardless of the uproar that has erupted, he chooses the “silent fish” once more till the second these strains are written. Regardless of the journalists’ efforts to contact and discover out firsthand what the corporate says and the way it will deal with the case. We await with specific curiosity the reply, as a result of sooner or later she must reply and the way precisely she is going to justify her motion.

As a result of the narrative left by numerous circles to move to the press that it’s a downside within the system of transmission of receipts and the problematic provider-partner can’t be believed. Primarily due to the length of the offence. A multinational of such energy can not go away such severe points to likelihood or entrust them… to amateurs.

And it is because they concern its repute, which – as it’s generally mentioned in enterprise circles – is the largest asset of an organization.

The “trick” with the costs – hearth from the guardian group

The “Jerusalem residents” are additionally impressed by the central charges that the subsidiary in Greece is required to pay to H&M’s guardian group in Sweden.

In accordance with the Monetary Statements for the 12 months ended 30 November 2022, H&M administration prices (central prices from the group) amounted to roughly €31 million in comparison with €21 million in 2021. That is an quantity elevated by 47.61% inside a 12 months.

Market gamers suspect that one thing else is behind it. Some even join the precise “apply” adopted by different multinationals on Greek soil and past, with their want to scale back the tax burden within the nation the place they function.

It’s mentioned that by placing numerous charges in favor of the guardian teams they’re attempting to extend the bills, in order to scale back the income they present with the last word purpose of avoiding paying excessive taxes.

Is that this entire trick with the excessive charges of the guardian corporations linked to the apply of intra-group transactions, to be able to form the costs in Greece?

Administration by… overseas residents

The truth that H&M has entrusted its common illustration in Greece to residents of… overseas additionally makes a robust impression. And particularly to residents of Sweden, as might be seen from the corporate’s announcement posted on GEMI on Could 1, 2024.

Amongst different issues, these in query are granted, amongst different issues, the appropriate to undertake cash, securities, dividend receipts, acquire cash, challenge, settle for and endorse securities corresponding to payments of alternate, promissory notes and cheques, obtain payments of lading, enter into contracts with pure and authorized individuals, with banks and with Personal Authorized Entities or Public Regulation for any transaction and customarily to carry out any authorized act of administration and administration of the Firm.

φωτ: Unsplash/Marcus Loke

The state… banana and the place does the audacity cease

“These are tax violations that quantity to a scandal as they provoke public sentiment,” market sources say. Violations that make the frequent folks surprise if these company giants, as they’ve established to be referred to as, deal with Greece not as a contemporary European State ruled by the legal guidelines, however as a… “banana”.

That’s, a rustic the place they will do no matter they need, with out being accountable to anybody. That they will disobey the legal guidelines and get away unscathed, with out anybody’s nostrils opening. That is why the case of H&M goes past the corporate itself.

It additionally comes at a time when there may be an ongoing public debate about how multinationals value their merchandise in Greece in comparison with different European international locations.

It’s essential to shed loads of mild on the case, to establish precisely what went incorrect, to be able to ship the message that Greece is certainly not… a “banana” and that there are guidelines and legal guidelines that have to be noticed and revered by everybody, no matter their dimension and energy.

Would the multinationals dare to do one thing related within the international locations the place they arrive from and preserve their headquarters?

Supply: ot.gr