A disagreement with the tax administration usually starts with a notice of assessment, a payment order or a refund rejection. Each has a short deadline, and the deadlines often affect one another. To choose the right route, first determine where the finding is disputed: the facts, the calculation or the legal interpretation.
Our role
We prepare the tax-technical and accounting side of the dispute: analysis of the inspection report and calculations, document sets, administrative applications and preparation for the settlement meeting. Representation in court is reserved for lawyers under Article 35 of the Attorneys Law. At the litigation stage we work with the lawyer chosen by the taxpayer and prepare the technical basis of the case. The taxpayer may also file the lawsuit personally.
Which action, which deadline?
| Action | First route | Deadline |
|---|---|---|
| Tax / penalty notice | Penalty reduction, settlement or lawsuit | 30 days from notification |
| Payment order | Lawsuit before the tax court | 15 days from notification |
| Rejection of a refund claim | Lawsuit before the tax court | 30 days from notification of the rejection letter |
| Calculation or recording error | Correction application to the tax office; complaint to the Ministry if rejected | Within the limitation period |
| Result of an invitation to explain | Explanation, return or inspection process | Tax inspection and invitation to explain |
Under e-notification, a document is deemed notified at the end of the fifth day after it reaches the electronic address. We enter the deadlines in the calendar from that date.
Administrative remedies
- Penalty reduction (Tax Procedure Law Art. 376): If the finding is correct, the dispute is ended by paying the tax and the reduced penalty on time. If this route is chosen, no lawsuit can be filed.
- Settlement (Tax Procedure Law additional Art. 1 and additional Art. 11): Under Law No. 7524, the tax principal has been removed from the scope of settlement since 2 August 2024; only the tax loss penalty and irregularity and special irregularity penalties above a certain amount can be settled. Only one of pre-assessment and post-assessment settlement can be used. A post-assessment settlement application is made within 30 days of notification of the notice. If no settlement is reached, the litigation period continues with the time remaining at notification of the minutes; if less than 15 days remain, it is extended to 15 days.
- Correction and complaint (Tax Procedure Law Art. 116–126): If there is a calculation or taxation error, administrative correction may be requested before a lawsuit. A difference in legal interpretation is not a matter for correction.
Litigation before the tax court
- Deadline: As a rule, 30 days from notification (Administrative Procedure Law Art. 7); 15 days for a payment order.
- Collection: Filing a lawsuit against an assessment, as a rule, suspends collection of the disputed amount (Administrative Procedure Law Art. 27). If the case is lost, the amount is collected with late payment interest.
- Appeals: Appeal (regional administrative court) and, in certain cases, appeal on points of law (Council of State) against the decision; monetary thresholds are updated every year.
- Basis: The court looks at the documents in the file. Raising documents and explanations not submitted during the inspection may become harder later; preparation therefore starts at the inspection stage.
Choosing a route
| Situation | Usually suitable route |
|---|---|
| Finding correct, amount undisputed | Penalty reduction and payment |
| Facts correct, penalty disputed | Settlement application (penalty only) |
| Difference in legal interpretation or assessment of documents | Lawsuit (with a lawyer) |
| Obvious calculation or recording error | Correction application |
| Difficulty paying | Deferral and instalments; Deferral and instalments for tax debt |
How we prepare the file
- Establishing the notification date and deadlines.
- Line-by-line analysis of the inspection report and minutes.
- Comparison with the books, returns, e-documents, bank and contract records.
- Recalculating the tax and penalty; comparing the cost of the options.
- The application text and numbered annexes for the chosen route, or a technical note for the lawyer.
- Tracking notifications and deadlines throughout the process.
Related calculators: Tax loss penalty calculator · Late payment interest
Sources
Tax Procedure Law No. 213 (Art. 112 late payment interest, Art. 116–126 correction and complaint, Art. 376 penalty reduction, additional Art. 1–12 settlement); Administrative Procedure Law No. 2577 (Art. 7, Art. 27); Law No. 6183 on the Collection Procedure of Public Receivables (Art. 58); Attorneys Law No. 1136 (Art. 35); Law No. 7524.