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Violation of principle of defence leads to nullifying of additional assessment

  • Right to Notice and Response: The Supreme Court ruled that the Tax Inspector must provide explicit notice of the intention to impose an additional assessment, allowing the taxpayer a timely opportunity to respond, reinforcing the principle of defense under Union law.
  • Burden of Proof: The court emphasized that if a taxpayer claims a violation of the principle of defense, it is the responsibility of the Tax Inspector to prove otherwise. In this case, the Inspector failed to adequately notify the taxpayer before issuing the additional assessment.
  • Outcome of the Ruling: Since the Tax Inspector did not fulfill the notice requirements, the court nullified the additional assessment and quashed the decision regarding tax on interest, highlighting the importance of proper procedural conduct in tax assessments.

Source Deloitte

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