Tax cases are filed by notification of the accounting operations within 5 years

The decisions of the Council of State, according to which the old ones are interrupted by the notification, within five years, of the accounting acts and not of their adoption, align tax legislation, in accordance with the ERT. With the new Code of Tax Procedures, which is to be promoted over the coming period in the House, it will be clearly defined when the countdown begins for the limitation of tax cases. The audit authorities will not be able to issue and send the accounting operations after the cases have been closed. For many years the entire country’s taxes have been under orders from tax administration to exhale each year, to deal with tens of thousands of cases, which were set aside for five years. The tax collectors on 31 December confirmed taxes and fines, but notified in the following year, causing strong reactions from taxpayers who argued that the right to charge taxes and fines had been waived. This practice resulted in court disputes starting on several occasions, while in others taxpayers were surprised to pay significant amounts to the tax office. At the same time, with the proposed changes, a maximum duration of checks will be established to limit pending cases in the auditors’ drawers, while any extension will be given in particular cases. In particular, tax control cannot be extended beyond one year. The basic limitation time for tax cases is five years, but there are exceptions which extend the limitation time by another year. This shall be done if, within the fifth year of the limitation period, an initial or amending statement 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 information from any source outside the Tax Administration, from which tax liability arises. This provision shall apply for tax years, periods, cases from 1/1/2019 onwards. Where no declaration has been made to income taxation, a 15-year limitation shall apply. Therefore, the IRS can control the uses from 2008 onwards. Where additional information came to the knowledge of the tax authorities shows that the income of the taxpayer exceeds what was declared, a 10-year limitation shall apply. The additional data may be derived, for example, from foreign banks to which the tax administration could not have access. Where the income tax declaration or the forms and statements accompanying it prove inaccurate, a 10-year limitation shall apply.