Decision Issued against a Contractor as Evidence in Tax Proceedings – an Important Judgment of the Supreme Administrative Court

In the course of tax proceedings, one may encounter the use – as evidence in the case of a taxpayer – of decisions (decisions, audit protocols or audit results) issued in relation to the taxpayer’s contractors. This practice of the authorities is often used in VAT proceedings, where the taxpayer’s right to deduct input tax is questioned due to irregularities at earlier stages of the supply chain. However, this is the subject of many controversies, which are reflected in the judgments of administrative courts.