Tax administration principles: responsiveness and decency in tax proceedings
Following the principle of responsiveness and decency, tax administrators should try to accommodate persons involved in tax administration. At the same time, both parties to the proceedings should avoid any impoliteness or indecency. Is this principle a 'mere' reflection of administrative etiquette, or can compliance with this principle also bring tangible benefits to taxpayers?
Although tax administrators may dispute facts asserted by taxpayers in tax proceedings, even a heated exchange of arguments should keep within the limits of polite language and formal communication. The situation may not be easy for either party, as there are usually considerable financial resources at stake, but both should respond to each other's arguments in a factual and respectful manner, and not try to lecture or belittle the other party or their arguments.
If the above principle is adhered to, the tax administrator will be more likely to accommodate taxpayers during tax proceedings and will avoid burdening them with excessive bureaucracy or prolonging the duration of individual administrative acts.
What if the tax administrator does not comply?
If you feel that the tax administrator is acting contrary to the principle of responsiveness and decency, you can file a complaint against their behaviour under the Tax Procedure Code. The tax administrator will investigate the facts set out in the complaint and decide within 60 days of the complaint being filed whether it is justified and, if necessary, seek redress.
We would like to point out that such a complaint cannot be held against you, i.e., the tax administrator should not take it into account when deciding on other matters even if it is found to be unjustified.
Polite and helpful behaviour also benefits taxpayers
However, it is not only the tax administrator who should follow this principle. Polite and forthcoming communication with the tax administrator will also pay off for you. Your manner of communication can play a very tangible role in the tax administrator's decision to, e.g., waive tax-related penalties and interest. There is no entitlement to such waivers, and it is therefore entirely within the tax administrator’s discretion whether to grant them.
Hence, if you apply for a waiver of a penalty, the tax administrator will consider your cooperation in the proceedings leading to the assessment of an additional tax when determining the extent of the waiver. If the tax administrator does not find other reasons to reduce the waived penalty, you may be granted a waiver of up to 75% of the penalty solely on the grounds of your cooperation and good behaviour.
Therefore, please communicate with your tax administrator in a friendly and polite manner. In our experience, it usually pays off, and not just financially.