Time limits in tax proceedings

Matters in tax proceedings should be dealt with while respecting the general principles of: the rule of law, conducting the proceedings in a manner that inspires confidence in the tax authority, ensuring the party's active participation at every stage of the proceedings, taking the necessary steps to thoroughly explain the facts of the case and timely.

The proceedings are initiated at the request of a party or ex officio. In the event of starting the proceedings ex officio, it is necessary for the tax authority to issue a decision. And, as a rule, dealing with the matter takes the form of a decision.

Based on Article. 139 of the Tax Ordinance, the settlement of a case that requires evidence proceedings should take place without undue delay, but not later than within one month, and in a particularly complicated case - no later than within two months from the date of initiation of the proceedings, unless the provisions of the Tax Ordinance provide otherwise .

Tax proceedings are initiated at the taxpayer's request or ex officio (in the form of a decision). At the taxpayer's request, the date of initiation of the proceedings is the date on which the request is delivered to the tax authority. However, when the request is brought by a person who is not a party or for any other reasons, the proceedings may not be initiated, the tax authority will then issue a decision refusing to initiate proceedings against which the taxpayer is entitled to a complaint.

On the other hand, the date of initiation of proceedings at the request of a party, which was brought by means of electronic communication, is the date of entering the request into the ICT system of a given tax authority.

Finally, when the proceedings are instigated ex officio, the date of initiation is considered to be the date on which the party is served on the notification of the initiation of the proceedings (with some exceptions).

Example 1.

The tax proceedings were initiated by a decision of March 11, 2013. The decision was effectively served on March 13, 2013. The decision should be issued within a month from the date of delivery, i.e. April 13, 2013. As April 13, 2013 falls on Saturday, the deadline is moves to the first working day, April 15, 2013.

The general rule is that cases should be dealt with immediately if they can be examined on the basis of evidence presented by the party, including a request to initiate proceedings, or on the basis of commonly known facts and evidence known ex officio to the authority conducting the proceedings.

Settlement of the case in appeal proceedings should take place not later than within two months from the date of receipt of the appeal by the appeal body, and the case in which the hearing was held or the party submitted a request for a hearing, not later than within three months.

Example 2.

The taxpayer filed an appeal directly to the office on July 3, 2013. The tax authority has the time limit for dealing with the case until September 3, 2013. If the taxpayer placed a request for a hearing in the appeal, the time limit for dealing with the case is extended to October 3, 2013, regardless of whether the hearing happened or not.

The time limits for settling the case do not include the time limits provided for in tax law for the performance of specific activities, periods of suspension of the proceedings and periods of delays caused by the fault of the party or for reasons beyond the control of the authority. It should be borne in mind that these deadlines do not apply in the case of a tax audit, to which separate regulations apply.

Example 3.

The attorney, when filing a signed application by the taxpayer on 2 July 2013, did not attach the granted power of attorney. Basically, the authority has one month to consider the application, ie until August 2, 2013. On July 4, 2013, the party was requested to complete the request for a power of attorney. The formal deficiencies were supplemented on July 8, 2013. Thus, the deadline for settling the case on August 2, 2013 was extended by 4 days - until August 6, 2013.

Instructional term

When analyzing the course of time limits under the Tax Ordinance, it should be borne in mind that these deadlines are indicative for tax authorities. This means that the authority does not lose the right to examine the case and issue a decision after exceeding the time limit for handling the case. Thus, it does not affect the flaws of the decision.

Pursuant to Art. 140 of the Tax Ordinance, the tax authority is obliged to notify the party of each case of failure to settle the matter in due time, stating the reasons for the failure to meet the deadline and indicating a new deadline for settling the matter. Moreover, the same obligation rests with the tax authority also in the event that the failure to meet the deadline occurred for reasons beyond the authority's control.

If the matter is not dealt with in due time or in an additional time (Art. 140), the taxpayer is not defenseless. For it is for urging. As a rule, a reminder is submitted to a higher-level tax authority, and if the matter has not been settled by the tax or customs chamber, to the minister responsible for public finance.

The tax authority mentioned above, which considers the reminder to be justified, sets an additional deadline for settling the case and orders the explanation of the reasons and determination of persons guilty of not settling the case on time, and, if necessary, taking measures to prevent violating the deadlines for dealing with cases in the future. At the same time, the authority determines whether the failure to settle the case on time was in gross violation of the law.