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BABIS VOVOS INTERNATIONAL TECHNICAL S.A.
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Comment on Press Publications
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November 8, 2007 In response to press releases regarding the amendment which was submitted to parliament, and refers to the taxation of reserves that were formed according to the articles 2 and 3 of Law 3220/2004, the management of BVIC S.A. announces: The press releases refer to companies, including certain listed companies that have created tax-exempt investment reserves according to articles 2 and 3 of L.3220/2004. The aforementioned press releases state that BVIC S.A. has formed tax-exempt reserves of Eur 18.7m that will be taxed. It should be clarified that BVIC S.A. has formed a tax-exempt reserve amounting to approximately Eur 18.5m, according to article 6 of L.3220/2004 that relate to surpluses that arise from sale and leaseback agreements. Therefore, it should not be included in the reserves that will be taxed, since article 6 of L.3220/2004 is still valid and supplements the Code of Revenue Taxation (L.2238/1994). Moreover, BVIC S.A. has created a tax-exempt investment reserve according to article 2 of Law 3220/2004 amounting to Eur 270,000. This reserve is also tax exempt, according to the above amendment, since the tax that would arise from the taxation of this reserve is less than Eur 100,000. Therefore, there is no tax liability regarding the reserves of BVIC S.A. arising from the aforementioned amendment to the law.
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