Tax assessment notices are issued following tax audits. They contain additional tax assessments or penalties. For businesses, this poses a direct financial risk. Appealing against tax assessment notices is a standard means of defence. It is effective provided one acts in a timely manner and adopts the correct legal position.
A tax lawyer plays a key role in such disputes. They assess the legality of the decision and devise a defence strategy.
What are tax disputes and tax assessment notices?
Tax disputes arise when a taxpayer disagrees with the findings of the tax authority. Most often, this is the result of a tax audit. A tax notice-decision is an official document that specifies the amount of tax liability or penalty. A tax notice-decision is usually based on:
- reports of documentary or factual audits;
- tax return data;
- the findings of the supervisory authority.
It is important to understand that it is the tax assessment notice itself that creates the obligation to pay the amount. An audit report is not, in itself, a decision.
Grounds for appealing against tax assessment notices
An appeal begins with an analysis of errors made by the tax authority. Most often, these relate to:
- incorrect interpretation of source documents;
- breaches of the audit procedure;
- arithmetic errors in calculations;
- lack of sufficient evidence.
In such cases, a tax litigation lawyer reviews the case file and formulates arguments for the annulment of the tax assessment notice.
How are tax assessment notices appealed?
There are two main avenues of defence: administrative and judicial.
Administrative appeal
In this case, a complaint is first lodged with a higher-level tax authority. The process involves:
- preparing a written complaint;
- substantiating the breaches;
- submitting documents and evidence;
- consideration of the complaint by the supervisory authority.
This stage allows the dispute to be resolved without going to court. However, the outcome here depends on the quality of the arguments put forward.
Judicial appeal
If the administrative route proves ineffective, the case is referred to court. To do this
- a claim is filed to set aside the tax assessment notice;
- the evidence from both parties is examined;
- the legality of the tax authority’s actions is assessed.
It is the tax lawyer who formulates a comprehensive legal position and represents the client’s interests.
Time limits for challenging tax assessment notices
Time is of the essence in such disputes. Missing deadlines complicates the defence. Key time limits:
- administrative complaint – up to 10 calendar days from receipt of the tax assessment notice;
- judicial appeal – up to 3 months in general;
- following administrative proceedings – 1 month to bring the matter before the court.
Whilst appeals against tax assessment notices are pending, the amounts assessed are not deemed to have been agreed.
Legal assistance in tax disputes
In tax disputes, it is not only the position that matters, but also the evidence supporting it. A tax lawyer performs the following tasks:
- analyses the tax assessment notice and the audit report;
- identifies procedural irregularities;
- formulates a legal position;
- prepares complaints and claims;
- represents the client in court.
The more complex the case, the more important professional representation becomes.
Benefits of consulting Svarog’s lawyers
Challenging tax decisions requires experience in dealing with regulatory authorities. Mistakes made at the outset often cost businesses money. Svarog’s lawyers deal with tax disputes systematically. We:
- assess the case’s prospects before the appeal begins;
- prepare documents without unnecessary risks;
- handle the case at every stage;
- defend the business’s interests in court.
Seeking expert advice helps minimise financial losses and maintain business stability. So do not delay – bear in mind the deadlines and contact Svarog’s lawyers for assistance.
Questions / Answers
What is a tax assessment notice?
It is an official document issued by the tax authority. It specifies the amount of tax liability or penalty that the taxpayer must pay.
How do you appeal against a tax assessment notice?
There are two routes: administrative and judicial. First, a complaint is lodged with the tax authority. If the decision is not revised, a claim is filed with the court.
Which is better to choose: an administrative or judicial appeal against a tax assessment notice?
Usually, the administrative procedure is used first. It is quicker and simpler. If the outcome is negative or the tax authority’s position is weak, the case is taken to court.
What documents are required in tax disputes?
Source documents play a key role. These include contracts, certificates of completion, delivery notes and payment orders. Accounting records and tax returns are also important.
What is the time limit for appealing against a tax assessment notice?
Usually, an appeal must be lodged within 10 calendar days of receiving the tax assessment notice. A judicial appeal may be lodged within 3 months, depending on the situation and the previous stage of the appeal process.
Is it possible to avoid paying the amount specified in the tax assessment notice whilst the appeal is ongoing?
Yes. Whilst the appeal procedure is ongoing, the amount is considered unresolved. This means that it is not subject to enforced collection until the dispute is resolved.
Is a lawyer required to appeal against a tax assessment notice?
It is not compulsory to engage a lawyer. However, in practice, this significantly increases the chances of success. Tax disputes are complex, and errors in argumentation or deadlines usually result in losing the case.
How much does legal assistance with appealing a tax assessment notice cost?
The cost depends on the complexity of the dispute, the amount of the additional tax assessed and the scope of work involved. In straightforward cases, this involves consultation and the preparation of the appeal. In complex cases, it involves full representation before the tax authorities and in court.