Defective Decisions Irreversible After Five Years

Ruling description

In its ruling of 1 June 2015, case no. I FSK 1994/13, the Supreme Administrative Court (NSA) ruled that the statute of limitations in tax law is not only intended to protect the taxpayer but is also aimed at providing for the stability of tax relationships. As a consequence, upon the lapse of the time-barred period, a decision cannot be reversed even if it leads to the consolidation of errors made by tax authorities.

As a result of an inspection, in his decision of December 2009, the Head of the Tax Inspection Office defined the VAT tax liability for the period from May 2004 through December 2004 as a result of challenging the taxpayer's right to apply the 0% VAT rate in the exports of goods. A penal fiscal proceeding was instituted against the taxpayer in order to suspend the period of time-barring a tax liability. Namely, as stipulated in Article 70 § 6 clause 1 of the Tax Ordinance, the course of the limitation period for a tax obligation