Who bears the burden of proof in tax proceedings and why is it important to know?

The questions of who bears the burden of proof in tax proceedings and when has plagued many a taxpayer and even tax administrators. The burden of proof is distributed between them and during tax proceedings usually shifts from one to the other. The…

Information obligation: what question may tax officers ask?

The tax authorities often call upon taxpayers – both formally and informally – to provide them with information or documents. While the information obligation towards the tax administrator is rather extensive, it does have its limits. Sometimes,…

When do penalties for additional tax returns arise? How to avoid them?

Generally, no penalty arises if the incorrectly paid tax is corrected in an additional tax return. Unfortunately, the amendment to the Tax Procedure Code effective from 1 January 2021 gives rise to situations where an additional tax return can lead…

Need more time to respond to tax authorities? Apply for deadline extension

Imagine a tax administrator's notice arrives in your data box. The deadline is insufficient, and you are rightly concerned that you will not be able to prepare your standpoint and collect the necessary documents in time. The Tax Procedure Code takes…

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…