Tag Archives: tax authority

ILN Today Post

How to win a tax lawsuit… easily, quickly and simply

Winning a tax lawsuit is a difficult and lengthy process, and often there are no guarantees of victory even when you’re totally confident that you correctly accounted for every transaction. So it’s worth paying particular attention to the opportunities for triumphing over the tax authority relatively easily and without any complications. What is more, recent case law has expanded the range of these options.

Okay, but who’s signature is that?

Tax authority resolutions have to be signed, just like any other official document. But the matter of precisely who signs a given resolution is by no means irrelevant. The laws specify who is authorised to sign a given resolution, but the rules aren’t always followed to the letter.

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ILN Today Post

Exactly what it seems

One of the most frequent areas of dispute between the tax authority and taxpayers relates to the conditions under which a taxable entity participating in a chain transaction can deduct the VAT passed on to it. The tax authority (NAV) was recently struck another blow in the tussle when the Supreme Court, in a precedent-setting ruling, took issue with the tax authority’s practice of regularly reclassifying the participants in chain transactions as agents. What’s more, the Curia’s ruling goes significantly further, and questions in general the tax authority’s right to reclassify the transactions of taxable entities on a whim.

NAV has very broad powers to classify a transaction for the purposes of taxation, based on its actual economic content. This reclassification does not affect the business or civil-law aspects of the relationship between the parties, but it can entail a serious additional tax and penalty payment obligation.

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ILN Today Post

The operation was successful… the patient is deceased

There is no use of winning a lawsuit against the tax authority if the enterprise goes bankrupt before the judgement is rendered. And such an outcome is by no means uncommon, as under the current laws the tax authority can initiate enforcement proceedings against a business while the suit is still in progress. What’s more, experience shows that the tax authority doesn’t shy away from enforcement even in the absence of the solid legal grounds for pursuing that route.There is no use of winning a lawsuit against the tax authority if the enterprise goes bankrupt before the judgement is rendered. And such an outcome is by no means uncommon, as under the current laws the tax authority can initiate enforcement proceedings against a business while the suit is still in progress. What’s more, experience shows that the tax authority doesn’t shy away from enforcement even in the absence of solid legal grounds for pursuing that route.

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