Are you dissatisfied with a decision made by the Tax Administration and considering filing a claim for adjustment regarding your taxation?
Appeal Regarding Income Tax Matters
An appeal regarding income taxation must be submitted to the Tax Administration, as a general rule, within three years from the beginning of the year following the end of the tax year. After this period, the right to appeal is lost.
For example, the deadline for filing an appeal regarding the income tax for the year 2021 is calculated from the beginning of 2022, and the appeal must be submitted by 31 December 2024 at the latest.
Due to changes in the regulations concerning appeals, it is still possible this year to exceptionally appeal the taxation for the year 2016. Therefore, before the end of the year, you can still file an appeal for a tax decision related to the income taxation of the years 2016 or 2019, with such appeals needing to be received by the Tax Administration by 2 January 2023.
Appeal in Inheritance and Gift Taxation
If the recipient of an inheritance or gift notices an error in their taxation, an appeal must also be filed regarding inheritance and gift tax within three years from the end of the tax year. In this context, the tax year refers to the year of the deceased's death or the year in which the gift was received.
Example: You received a taxable gift on January 31, 2020, and submitted the gift tax declaration on April 20, 2020. Later, you receive clarification on the value of the gift, prompting you to file an appeal. The gift taxation was issued on June 20, 2020. Since the gift was received in 2020, the appeal must be received by the Tax Administration by January 1, 2024, at the latest.
Before the end of the year, you can still file an appeal regarding a decision on inheritance and gift tax for an inheritance or gift received in 2019. This year, you can exceptionally file an appeal even if the deceased passed away or the gift was received in 2016, but the inheritance or gift taxation was issued only in 2017.
Filing an Appeal
In the first stage of the appeal process, a change is requested through an appeal to the Tax Adjustment Board. An appeal from the Tax Adjustment Board’s decision is made to the Administrative Court, and from the Administrative Court’s decision, further appeal can be made to the Supreme Administrative Court, provided that permission to appeal is granted.
The appeal must specify the tax year, the claims, and the reasons for those claims. Although the appeal is addressed to the Tax Adjustment Board, the Tax Administration may resolve the matter to the extent that the taxpayer’s claim is fully accepted. It is therefore important that the appeal is carefully drafted, covering the key regulations and case law, already in the first stage of the appeal process.
To ensure a favorable outcome for the taxpayer, it is advisable to focus on the appeal process early on. In order to stop the process as soon as possible, the claims and their justification in the appeal should be effectively targeted and clearly take into account the relevant legislation, previous case law, and the opinions expressed in legal literature. The Tax Administration’s guidelines can also be relied upon if the tax decision is contrary to them. Understanding the relevant regulations and case law is crucial, so it is recommended to consult a tax expert if the matter is ambiguous or financially significant.
