Appeal of Tax Assessment Notices

A tax assessment notice-decision is a document by which the tax authority determines the amount of a taxpayer’s monetary obligation, penalties or interest, or reduces certain tax reporting indicators. For a business, such a decision may mean not only an additional financial burden, but also the risk of tax debt, pressure on operations, issues with banks, counterparties and business reputation.

Challenging a tax assessment notice is necessary when the tax authority’s conclusions are based on an incomplete review of documents, incorrect application of tax law, a formal approach to business transactions, errors in the tax audit report or procedural violations by the controlling authority.

VINCO’S attorneys help assess the prospects of the dispute, prepare the legal position, file an administrative complaint with the tax authority or a claim with the administrative court, and support the client until the tax assessment notice is cancelled or amended.

Challenging a tax assessment notice-decision is a legal procedure for protecting a taxpayer against an unlawful or unsubstantiated decision of the tax authority. Such a decision may be challenged administratively before a higher-level tax authority or directly in court.

Administrative appeal allows the taxpayer to file a complaint with the tax authority, submit documents, calculations and explanations, and attempt to cancel the decision without court proceedings. Judicial appeal involves filing a claim with the administrative court seeking to declare the decision unlawful and cancel it.

The correct strategy depends on the type of tax, the amount assessed, the available evidence, the quality of the audit report, the date of receipt of the decision, whether objections to the audit report were submitted, and the risk of tax debt.

• after receiving a tax assessment notice following a tax audit;
• if the tax authority assessed corporate income tax, VAT, single tax, personal income tax, military levy, excise tax or another payment;
• if penalties or interest were imposed;
• if VAT refund or negative VAT value was reduced;
• if the tax authority’s findings do not match primary documents and actual business operations;
• if the audit report contains errors, assumptions or formal conclusions;
• if the tax authority failed to consider submitted documents, explanations or objections;
• if it is necessary to prevent tax debt or enforced collection;
• if the business wants to assess the prospects of an administrative or court dispute before filing a complaint or claim.

A taxpayer may choose either an administrative or a judicial path of protection. In some cases, it is advisable to first file a complaint with the tax authority in order to suspend the finalisation of the monetary obligation, submit additional documents and record the legal position before going to court.

In other cases, immediate court proceedings may be more effective, especially where the tax authority’s position is formal, the dispute requires judicial assessment of evidence, or the administrative procedure has no realistic prospects.

Before choosing the method of protection, it is important to calculate the deadlines correctly, assess the evidence and determine whether the chosen strategy may create additional risks for the taxpayer.

In tax disputes, deadlines are one of the key factors. As a general rule, administrative appeal of a tax assessment notice is subject to a short deadline calculated from the day following receipt of the decision. If the deadline is missed, its restoration requires separate justification and evidence of valid reasons.

Court deadlines depend on whether the administrative appeal procedure was used, what decision is being challenged and what claims are being filed. Therefore, before filing a complaint or lawsuit, the attorney must verify the date of receipt of the notice, the method of service, the date of completion of the administrative procedure and the current court practice.

Missing a deadline may result in the complaint being rejected, the claim being left without consideration, or the loss of an effective opportunity to cancel the tax assessment.

• the date and method of receipt of the tax assessment notice;
• the type of tax, assessment amount, penalties and interest;
• the audit report, inspectors’ findings and annexes;
• whether objections to the audit report were filed and considered;
• whether the tax authority complied with the procedure for initiating, conducting and documenting the audit;
• whether tax law and secondary legislation were applied correctly;
• whether transactions are supported by primary documents, contracts, payments, invoices and other evidence;
• whether there is relevant court practice on similar assessments;
• whether it is better to file an administrative complaint or go directly to court.

• violation of the procedure for appointing or conducting a tax audit;
• failure to serve documents properly on the taxpayer;
• incorrect application of substantive tax law;
• unfounded denial of the reality of business transactions;
• disregard of primary documents, explanations or objections submitted by the taxpayer;
• errors in calculating tax liabilities, penalties or interest;
• lack of proper reasoning in the audit report;
• exceeding the subject matter or period of the tax audit;
• violation of deadlines for issuing or serving the tax assessment notice.

• Initial review of the tax assessment notice, audit report, deadlines and amount in dispute.
• Review of documents, tax returns, contracts, primary documents and correspondence with the tax authority.
• Assessment of prospects for administrative and judicial appeal.
• Preparation of a defence strategy and a list of evidence to be collected.
• Preparation of an administrative complaint to the tax authority or a claim to the administrative court.
• Preparation of annexes, calculations, explanations, motions and other procedural documents.
• Representation of the client during complaint review or court proceedings.
• Analysis of the decision of the tax authority or court and determination of further steps: appeal, cassation or enforcement.

• the tax assessment notice and envelope or evidence of the date of receipt;
• the tax audit report or certificate with annexes;
• objections to the audit report and the tax authority’s response, if submitted;
• audit order, referrals, requests from the tax authority and responses to them;
• tax returns, amended returns and other reporting for the disputed period;
• contracts, acts, invoices, bills, payment documents, consignment notes and other primary documents;
• correspondence with counterparties, banks or public authorities;
• accounting certificates, trial balances and accounting registers;
• court decisions or materials of previous disputes, if any.

When preparing a court appeal, the court fee must be calculated separately. It depends on the nature of the claim, the status of the claimant, the amount in dispute and the applicable rates on the filing date.

It may also be necessary to account for expenses related to expert opinions, accounting analysis, document translation, collection of evidence or other procedural actions required to prove the taxpayer’s position.

Self-managed appeal often consists of a general disagreement with the tax authority’s conclusions without a detailed review of the audit report, primary documents, tax returns and court practice. In tax disputes, this is usually not enough.

The most common risks include missed deadlines, wrong choice of protection method, insufficient evidence, poorly formulated claims, incomplete rebuttal of the audit findings, and filing a weak complaint or claim that is difficult to strengthen later in court.

If the decision is not challenged on time or is challenged only formally, the tax assessments may become final, and further dispute resolution will be much more difficult.

VINCO’S Legal Company supports appeals against tax assessment notices at all stages: from the initial review of the decision and audit report to administrative or judicial protection of the taxpayer’s interests.

We analyse the grounds for the tax assessment, review the audit procedure, prepare objections, complaints, claims and procedural documents, build the evidence base and represent clients in disputes with tax authorities.

The goal of VINCO’S is not just to file a complaint or lawsuit, but to build a strong legal position, reduce tax risks and help the business protect its funds, documents and reputation.