Amendment to Act Tax Regulations – change tax control and amount of default interest

Amendment to Act Tax Regulations will come into effect on 1/1/2021. This amendment brings changes to tax control.

Expected result is simplification of whole tax control process. Part of this simplification is the possibility to start the process by delivering a notice of start of the tax control. In line with this change it will be possible for the whole process of tax control to be completed through correspondence as opposed to the current requirement of presence of the tax subject (e.g. in offices of tax subject). These changes endeavor to prevent arguments about the exact time of the start of the process, as it is not possible to file additional tax return forms once this process starts.

Another part of the amendment enable that responsible taxation authority, in cases of assess tax return additionaly, to request additional tax return from taxed subject, otherwise it will not be possible to apply fine.

Whole process of tax control is finished by delivery of notice of completion and tax control´s report, which also means that the report will no longer require signature of the tax subject.

Amendment also changes related sanctions, namely it lowers default interest (according to Tax Regulations) to the level stated by Civil Code – i.e. repo rate + 8 percentile points instead of current 14 percentile points.