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Application of tax relief

Who can benefit from relief?

Who can benefit from relief?

It is possible to obtain tax relief and this is an effective solution for taxpayers who have to pay significant amounts of tax resulting, for example, from the fiscal decision on their tax arrears.

Relief by way of instalments of the commitment, postponement of the payment deadline or waiver of part or all of the commitment is available to both companies and private persons.

The aid measures provided for in the Act may be applied only in specific situations, at the request of the taxpayer, and the decision in this respect is of a discretionary nature. Our experts have extensive experience in this subject, on the basis of the methodology developed, we know that in all cases it will be very important to justify the proposal.

What can we do?

We will write a complete application for a relief

We will examine the situation and help formulate the right argument

We will propose a comprehensive strategy for action

What is the solution?

Taxable persons having difficulty repaying their current tax obligations on the basis of  Article 67a(67b) Tax Ordinance may request:

  • postponement of the time limit for payment of the tax or distribution of payment of the tax per instalment;
  • postponement or distribution into instalments of the payment of the tax arrears together with interest on late payment or interest on outstanding advances on tax;
  • remission in whole or in part of tax arrears, interest on late payment or carry-over charges.

In the case of taxable persons who are unable to pay outstanding, long-term current liabilities, including VAT, the tax authority will certainly, in addition to the current financial situation of the taxpayer, draw attention to the reasons for the lack of payment, the fact that the taxpayer has regulated other current liabilities and to what purposes it has allocated available funds.

Our specialists, on the basis of their own observations and the support provided in this respect, indicate that taxpayers who apply for the distribution of the tax into instalments have the best chance of receiving assistance from the tax. It should be stressed that the repayment period in the event of obtaining an authorisation to distribute the tax into instalments, usually oscillates within the limits one one year, which already provides considerable support to a taxpayer facing short-term liquidity problems.

Furthermore, taxpayers often point to problems with the self- formulation of the proposal, as well as to ambiguities associated with where such a request should be submitted.

When the taxpayer is in a difficult financial situation, it may be much more effective to submit an application for the distribution of the tax in instalments at the time when the declaration is made than to apply for aid at the time when the tax arrears arise.

A qualified tax adviser will be able to determine whether, on the basis of his financial situation, the payer will be able to comply with the obligation as soon as the taxpayer submits a tax return, through his knowledge and experience.

If you have any questions or doubts about the subject, please contact us.

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