Minimising sanctions: other options to reduce default interest

As a sanction associated with an additionally assessed tax, default interest can often be more severe than a penalty. Default interest waiver options, discussed in the previous issue of the Tax and Legal Update, are very limited where tax…

Minimising penalties: how to claim a default interest waiver?

The January amendment to the Tax Procedure Code has brought relatively significant changes to default interest, introducing a single default interest rate for both tax administrators and taxpayers of 8% + repo rate. However, taxpayers have tools at…

Minimising penalties - how to claim a waiver?

Depending on the results of a tax inspection, a penalty of 20% of the additionally assessed tax or 1% of the amount by which a tax loss was reduced may become due. This amount is fixed, and cannot be reduced by tax administrators on their own.…

How to minimise additional tax assessment sanctions?

The conclusion of a tax inspection resulting in an additional tax assessment is associated with sanctions: a penalty plus default interest; the latter, while technically not a sanction, may be many times higher than the penalty. The Tax Procedure…

Initiation and termination of tax inspections after amendment to Tax Procedure Code

The Tax Procedure Code has been amended, with changes already effective since 1 January 2021. How has the amendment affected tax inspections, in particular their initiation and termination? One positive aspect is that it will definitely help…