IRS: At 5 years of notification to the taxpayer the limitation of cases

A change for the better for him is foreseen in the Finance Ministry’s bill ( ) which has been consulted since 31.3.2024, clearly setting the deadline for the limitation of tax cases. Although time does not substantially change, remaining in the 5 years with the prediction of extensions, clears the landscape about when the deadline begins to count. Thus, according to the bill of the Ministry of Finance , the limitation period for tax cases is set at five years from the date of notification of the transaction concerned to the taxpayer , instead of the date of issue thereof , which has been in force until now. This means that the usual case will be avoided to run out of time without being aware of the taxpayer as until now the tax debt or fine has been assured without informing the citizen immediately with the time to run in absentia. This is because, until now, the taxes on the last day of the year, December 31st, have confirmed taxes and fines, which were notified in the coming year, causing chaos and legal disputes with taxpayers who have denounced that the right to charge had been waived. Now the citizen will be able to know that time counts backwards from when it is informed by tax administration alone. Therefore, from now on tax legislation is in line with the requirements of the Council of State, which had decided to do so in the past, providing that the limitation of old tax cases is interrupted by the notification, within five years, of the accounting acts and not by their adoption. When the limitation period is extended In addition, in accordance with the legislation already in force, the five-year limitation period shall be extended by another year if, within the fifth year of the limitation period, an initial or amending declaration is submitted or new information is brought to the attention of the Tax Administration in a case which has been fully audited or in any other case come to the knowledge of the Tax Administration information from any source outside the Tax Administration, from which tax liability arises. This provision shall apply for tax years, periods, cases from 1 January 2019 onwards. Analyticalally: 1. For tax years , periods , cases from 1.1.2014 to 31.12.2018 , the five-year period shall be extended by 1 year if the taxpayer submits an initial or amending declaration within the fifth year of the limitation period . 2. For tax years, periods, cases from 1.1.2018 and after an act of administrative , estimated or corrective determination of tax may be issued within 10 years of the end of the year in which the time limit for the submission of the declaration or the last declaration expires in the event of the submission of more declarations provided that: the taxpayer has not submitted a declaration or after five years come to the knowledge of any Office of the Tax Administration new data or information which could not be in that knowledge within five years and it appears that the tax debt exceeds that established on the basis of a previous direct, administrative, estimated or corrective determination of tax and only on the matter to which they relate. The additional data may be derived, for example, from foreign banks to which the tax administration could not have access. The College’s plenary session has considered that the data on the balances and movements of bank accounts in the country, regardless of whether they constitute income acquisition, are not “additional elements”, i.e. they cannot justify the extension of the five-year limitation to ten years, given that the audit mechanism has access to bank account data. 3. For the years 2012 and 2013 and the fiscal years 2014-2017 , tax instruments may be issued within 10 years of the end of the year in which the reporting deadline for tax evasion expires. For information that comes into the knowledge of any Tax Administration Office concerning tax evasion, tax-determining acts shall be issued only if tax amounts exceed the limits set for tax evasion.