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Interview: Spyros Aggelopoulos, Principal – Tax Diligence & Structuring Leader, Deloitte Greece

The Strategic Tax Risk Snapshot: Its Importance and Added Value for Businesses and Shareholders

The tax and business environment in Greece and globally is characterized by constant change, driven by developments in tax legislation, geopolitical shifts, and broader economic factors such as the evolution of international trade and the financial system.

Within this context, the need for a proactive and systematic update on a company’s or group’s tax position has become more relevant than ever.

The Strategic Tax Risk Snapshot (or Tax Review of Specific Purpose) serves as a tool of tangible added value, not only within the framework of tax compliance, but also as part of strategic planning, risk identification and management, and the uncovering of unrecognized value. It should not, however, be confused with the annual (optional) tax certificate issued by statutory auditors, as it differs in content, purpose, and intended audience.

What is a Strategic Tax Risk Snapshot, and how does digital transformation accelerate its implementation?

The Strategic Tax Risk Snapshot is a methodologically flexible process designed to overview the overall tax position of a company or business group. With the support of modern tools such as artificial intelligence and the increasing use of MyDATA, the process can be completed within a short time frame, providing management with clear insights and analysis of tax positions, risks, and opportunities to support any upcoming business decisions.

It involves an assessment of compliance with tax legislation, analysis of potential tax risks, and identification of possible tax opportunities (e.g., deferred tax assets, available incentives), while ensuring timely detection and management of risk.

Depending on the company’s structure or activities, the Strategic Tax Risk Snapshot can be further specialized into:

• Thematic Strategic Review: Focused on specific tax areas (e.g., VAT, customs duties, or sector-specific issues).
• Targeted Strategic Tax Snapshot of Specific Processes: For example, assessing how a new tax law affects the company’s existing structures and operations, or evaluating the predictability of tax and duty costs across the commercial chain before a new business action or investment takes place.

Why it matters

• Optimization of the Tax Position
Through strategic tax analysis, potential opportunities for optimization can be identified-such as the utilization of deferred tax assets, deductions, or incentives (e.g., those provided under Law 4172/2013). In many cases, a focused tax review may also reveal areas for reducing administrative and tax-related costs.

• Updating Internal Procedures and Strengthening Strategic Decision-Making
The Tax Review functions as a mechanism within the company’s internal control processes, enhancing operational systems and transparency. It reinforces credibility and trust among key stakeholders, including shareholders, investors, and financial institutions.
Timely tax mapping ensures that new strategic moves, such as complex contracts, market expansion, or corporate restructuring-are not accompanied by unidentified tax risks or complexities.

• Risk Prevention and Reduction of Potential Penalties
By identifying potential tax irregularities before a tax audit or the finalization of the annual tax results, the company can safeguard itself from future financial burdens, penalties, or reputational risks that might arise from a tax authority’s review.

• Preparation for Mergers and Acquisitions
A pre-transactional tax review (tax due diligence) is an integral part of any acquisition or investment process. It ensures a clear and reliable financial, legal, and tax picture of the target and allows for a proper allocation of liabilities in contractual agreements.
For shareholders, early preparation and determination of the optimal transaction structure are essential, as the short negotiation window between counterparties may not allow sufficient time for in-depth assessment. A proactive tax “health check” offers the opportunity to evaluate key issues, risks, and opportunities well before discussions with potential investors begin.

When should it be conducted?

• At regular intervals (typically annually or every two years)
• Prior to significant strategic business moves, such as entering a new market, preparing for share sales, group restructuring, or concluding complex new contracts.

Summary

A Strategic Tax Risk Snapshot should not be seen as a luxury, but as a decision of strategic importance that provides measurable added value for both management and shareholders.
Companies that adopt a strategic approach to tax management secure a competitive advantage in an ever-evolving and uncertain legal, economic, and geopolitical landscape.
With the support of technology, the efficiency and reliability of strategic tax reviews are significantly enhanced, without materially increasing the related cost.