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Cooperation with the tax authority during the audit, and unsubstantiated accusations regarding the appearance of transactions and participation in the so-called "tax fine"

Control and tax proceedings are a particularly stressful moment for every taxpayer, and even more so at the time of unfounded accusations.

Control and tax proceedings are a particularly stressful moment for every taxpayer, and even more so at the time of unfounded accusations.

In such cases, it is important to bear in mind the rationality of your behaviour, as the lack of it may threaten with fiscal responsibility, and the key to such proceedings is to act in a consistent manner...

Control and tax proceedings are a particularly stressful moment for every taxpayer, and even more so at the time of unfounded accusations. In such cases, it is important to bear in mind the rationality of their behaviour, because their absence may threaten to be a tax liability, and the key to such proceedings is to follow acceptable legal standards which cannot expose us to this responsibility, or to the charge of obstructing the official's activities.

"[...] in practice, any form of obstruction of procedural activities may face a risk of punishment."

The criminal action remains such that the taxable person entitled to carry out checks, tax checks, tax checks or checks on specific tax supervision, e.g. customs, thwarting or obstructing the performance of the official activity. In particular, it is punishable not to show, contrary to the request of the controlling books or other documents relating to the conduct of business. Similarly, the penalty is for those who destroy, damage, render useless, hide or remove a book or other document.

However, the catalogue of prohibited acts does not end there. The taxpayer should bear in mind that in practice any form of obstruction of procedural activities may face a risk of punishment.

What should we be aware of during the initiated and ongoing inspection?

• Tax authorities’ practices in the field of auditing and tax proceedings

• Rights and obligations of taxpayers in tax proceedings

• Principles for tax and tax controls

• Evidence and finding of facts

  • Complaints: reservations to the control protocol, complaints on provisions, appeals against decisions
  • Court proceedings: action to the Provincial Administrative Court, cassation action to the Supreme Administrative Court
  • Personal liability for public liabilities

We recommend training: Cooperation with the tax authority during inspections – practical workshops

In practice, taxpayers make a lot of mistakes during ongoing checks, which lead to accusations, although they are often unfounded and concern the apparent nature of the transaction and the participation in the so-called "tax penalty".

There is no reason to be surprised, considering that such activities are very stressful and very often from the assumption of an entrepreneur is treated as a criminal.

Therefore, it is always worth considering whether we have the right knowledge and skills to come out of such a difficult situation with a defensive hand, if we cannot seek guidance on how to cooperate with the tax authority during inspection and tax proceedings with a specialist.

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