Advice on objecting to tax penalties, tax examinations, settlement applications and litigation before the tax court.
Tax obligations are an inseparable part of the commercial and financial activities of individuals and legal entities. Examinations carried out by the tax administration, taxes assessed, penalties imposed, and late-payment interest applied can have serious financial consequences for taxpayers.
Tax Law is a field encompassing the legal rules governing the assessment, accrual and collection of taxes, tax examinations, tax penalties, the settlement mechanism, and the resolution of disputes between the tax administration and taxpayers through administrative and judicial means.
Our firm provides legal consultancy and attorney services regarding advice during tax-examination processes, legal assessment of tax/penalty notices, settlement applications, annulment lawsuits before the tax court, disputes over late-payment surcharges and interest, preliminary assessment of tax offenses, and a general assessment of companies' tax-related risks.
Tax Law is the branch of public law that regulates the rules the state must observe in exercising its power to tax, and the rights and obligations of taxpayers vis-à-vis taxation. The relevant tax laws, foremost the Tax Procedure Law, regulate the stages of assessment, notification, accrual and collection of tax, the procedures for tax examinations, tax offenses and penalties, and administrative remedies such as settlement and correction. As the time limits for administrative applications and filing lawsuits in tax disputes are, as a rule, specifically and narrowly set out in law, it is important to assess the legal situation without delay following the notification of a tax/penalty notice or an examination report.
During tax examinations conducted by the tax administration, the taxpayer has both procedural and substantive rights. During the examination process, matters that may be assessed include whether the examination was initiated in accordance with proper procedure, whether the taxpayer was informed, the production of books and records, the content of the examination minutes, and the legal basis of the report issued at the conclusion of the examination. Preparing the opinions and objections to be submitted against the examination report in a timely and well-reasoned manner may strengthen the legal position in subsequent stages.
After notification of a notice regarding tax assessed and penalties imposed by the tax administration, it is important to examine the legal basis of the assessment and penalty, the calculation method, and the facts on which they are based. Depending on the nature of the specific case, different legal avenues such as settlement, filing a lawsuit, or a request for correction may be assessed; which avenue to pursue is determined according to the type of notice and the taxpayer's priorities.
Where the conditions set out in law are met, it may be possible to pursue settlement with the tax administration with respect to the tax assessed and/or the penalties imposed. In the settlement process, the basis of the assessment, the evidence and grounds the taxpayer may submit, how the matter may be assessed by the administration, and the consequences settlement would produce for the taxpayer compared to litigation are assessed together. As the time limits for a settlement application are set out in law, it is important that the process is carried out without delay after notification of the notice.
Where the tax administration's transactions are considered unlawful, filing an annulment lawsuit before the tax court within the time limits set out in law may come into question. During the litigation process, the legal and factual basis of the assessment, the propriety of the examination procedure, the assessment of the evidence, and the lawfulness of the administration's transaction are examined by the court. Correctly monitoring the time limit for filing a lawsuit and the conditions for litigation in tax cases is critically important in order to prevent loss of rights.
With respect to taxes not paid on time, late-payment surcharges, late-payment interest, and other ancillary claims provided for in law may arise. The method of calculating these claims, their starting date, and the compliance of the applied rates with the legislation must be separately assessed on the basis of the specific case.
Certain tax violations may, in addition to administrative tax penalties, also give rise to consequences under criminal law where the conditions set out in law are met. In such matters, it is important to assess the relationship between the administrative process and the possible criminal process, and the taxpayer's legal situation, as a whole.
Companies' commercial activities, contracts and structural transactions (such as mergers, acquisitions and restructurings) can give rise to various tax consequences. Our firm can provide a general assessment aimed at identifying tax-related risks within the legal nature of the specific transaction; for detailed tax planning and tax-return processes, coordinated work with financial advisors and certified public accountants is recommended.
In tax law, the time limits for administrative applications, settlement requests and filing lawsuits are set out in law and are, as a rule, short. Missing these time limits may eliminate the taxpayer's ability to pursue legal remedies. For this reason, when a tax/penalty notice, a payment order, or an examination report is served, it is important that the legal situation be assessed without delay and that the course of action to be followed (settlement, a request for correction, or litigation) be determined in a timely manner.
After notification of the notice relating to the tax penalty, legal avenues such as a settlement application, a request for correction, or an annulment lawsuit before the tax court may be assessed depending on the circumstances of the specific case. Which avenue to pursue must be determined according to the type of notice and the applicable time limits.
The time limits for a settlement application are set out in law and begin to run from the date the notice is served. In order not to miss the time limit, it is important to carry out a legal assessment without delay once the notice is served.
The taxpayer has rights during the examination process, including being informed, objecting to the minutes, presenting a defense, and pursuing legal avenues such as settlement or litigation against the outcome of the examination. The scope of these rights may vary according to the type and stage of the examination.
The scope and consequences of the settlement may affect the right to litigate with respect to the tax and penalty that were settled. For this reason, it is important to assess the legal consequences of settlement before submitting a settlement application.
The time limit for filing a lawsuit may vary according to the nature of the transaction and the date of notification. For this reason, when a tax/penalty notice or other administrative transaction is served, it is important to calculate the time limit without delay.
Representation by a lawyer may not be mandatory in every case. However, due to the technical nature of tax law, the shortness of the time limits, and the complexity of the procedural rules, obtaining legal support can be important in preventing loss of rights.
If you have been served with a tax/penalty notice, a payment order, or a tax examination report, it is important, first of all, to assess the legal basis of the transaction and the applicable application time limits. If you need legal support regarding tax examinations, tax penalties, settlement, requests for correction, late-payment surcharges and interest, or litigation before the tax court, you may contact us so that the particular features of your matter can be assessed.