Significant extension of investigation and assessment periods for income tax and VAT

With the Act of 20 November 2022, the legislator is giving the tax authorities a procedural boost.

The Act creates an additional means of pressure in the field of income tax and VAT, which should allow the tax authorities to force the taxpayer and third parties to cooperate in tax investigations with the help of court-imposed penalty payments. The Act also aims at weakening the prior duty of the tax administration to justify suspicions of fraud before being allowed to extend the ordinary three-year investigation period for income tax to (what has now become) ten years in cases of suspected fraud. These changes will mainly affect taxpayers who obstruct investigations and/or are suspected of tax fraud.

Source Eubelius

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