Tripoli, 18/1/2012

HELLENIC REPUBLIC REGION OF PELOPONNESE HEAD OF THE REGION

A.P.: 3034/1092

To: Mr. Michel Barnier European Commissbner for Internal Market and Services

Subject: Unconstitutional Tax Collection in front of Power Black-Out Dear Mr Barnier, We would like to draw your attention at an important issue that opposes to internal market and services regulations and ask for your actions. According to the provisions of article 53 of the law 4021/2011, an exceptional specific duty was introduced with the justification that allegedly with its immediate collection, the targeted fiscal goals for reduction of the public deficit of the country will be fulfilled. However, although the above comprises eminently a public income, the legislator transferred the authority of the Public Financial Services (Inland Revenue Authorities) to collect such a duty to the Public Power Corporation (PPC), which is a private legal entity and is operated under the legal status of a Societe Anonyme, as well as to alternative electric power suppliers, to which in this way the exercise of public power was assigned. As a result, the above mentioned exceptional specific duty constitutes, undoubtedly, in its substance a tax burden, the imposition of which is contrary to the provisions of the Constitution, the European Convention of Human Rights and of the International Convention of Civil and Political Rights. At first, the duty of PPC and the alternative electric'power suppliers is to provide a vital social good, and the cessation in its provision is threatened as a direct measure of enforcement for the collection of this tax. Indeed, in case that one cannot pay the above mentioned special tax is threatened with power black-out, regardless having paid for the provided services (electricity). However, this means of enforcement is directly opposed to Articled paragraph 1 of the Hellenic Constitution, as the deprivation of the above mentioned social good in this way violates the substantial human values and endangers human health and life. May we also stress the fact that the duties imposed by the PPC shall have retributive character, meaning that they provide a special benefit towards the property owners: Nevertheless, this "exceptional specific duty" is not connected to any kind of special benefit towards them. In fact, as mentioned above, this is undoubtedly a tax burden, which is directly opposed to the purpose, for which the above entities operate. Moreover, the amount of the tax is calculated by reference to the methods of calculation used by PPC, which means that the calculation is effected by authorization and, in particular, by private legal entities, and in this way Article 78 par. '1(and 4 of the Hellenic Constitution is violated, in which provisions the elements of taxation, which cannot be subject to legislative delegation of authority, are specifically defined. It should also be stressed that the delegation of exercise of public power, as the verification and collection of taxes by a private societe anonyme, blatantly violates the provisions of the Constitution as regards the separation of powers and the state of law and order
Ethn. Makariou Square 221 00 Tripoli, Greece

tel:+30 2713 601190-192

fax:+30 2713 601173 email: ppel@ppel.gov.gr www.ppel.gov.gr

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REGION OF PELOPONNESE HEAD OF THE REGION

Furthermore, this tax is imposed indiscriminately without any escalation dependent upon the ability of each taxpayer to pay taxes and without having taken into consideration objective and decisive factors, that which differentiate the value of properties, violating in this way the provisions of the Constitution and the international conventions regarding the equality of citizens in taxation, the right of judicial protection and the free development of personality. Moreover, the imposition of this tax constitutes in fact a re-taxation of the real estate property, which has already been taxed. Nevertheless, the repeated taxation of the same property within the same fiscal year is prohibited. Additionally, the provisions of the Constitution and the international conventions which guarantee the respect of property and ownership, are also violated, because excessive taxes are imposed on real estate properties, whether producing income or not, finally resulting in depriving the owners of their property. Consequently, from all the above mentioned, it derives that the imposition of the "exceptional specific Tax on Structured Surfaces supplied by electricity" violates substantial civil and social rights and is blatantly illegal and unconstitutional. Please, do inform us for any actions you may take. With

lis ernor of Peloponnese

Ethn. Makariou Square 221 00 Tripoli, Greece tel: +30 2713 601190-192 fax:+30 2713 601173 email: ppel@ppel.gov.gr www.ppel.gov.gr