Tax Litigation

An objection asks the assessing office itself to reconsider and is optional; a Tax Tribunal appeal is decided by an independent body and (or an alternative review) is a mandatory step before court litigation (Framework Act on National Taxes arts. 55, 56). The right route depends on the nature of the issues, how ready your evidence is, and whether facts are disputed. Each step has its own deadline, so seek advice early after receiving the assessment.

Within 90 days from the day you became aware of the assessment — usually the day the tax bill was received (Framework Act on National Taxes art. 68). If an objection was filed first, 90 days run from notice of that decision. The deadline is strictly enforced; even one day late means dismissal without a merits review. Ninety days is not long for organizing facts, gathering evidence, and drafting, so fix the receipt date and start preparing at once.

Late-payment penalties accrue continuously, and after a demand notice, enforced collection follows — seizure of bank accounts, wages, and real estate (see the National Tax Collection Act). Large arrears can bring exit bans, public disclosure of delinquents, and credit reporting. Relief exists: payment deferral or installments where lump-sum payment is genuinely difficult, and unlawful or excessive seizures can themselves be challenged. Options narrow the longer arrears continue, so organize the amounts and assets and plan a response early.

The roles differ. Tax accountants excel at filings, bookkeeping, and day-to-day audit handling; attorneys focus on contesting the legality of assessments and managing statements and evidence. Court litigation can only be conducted by an attorney (see Attorney-at-Law Act art. 3), and where a criminal tax investigation or referral is possible, a single statement can carry criminal consequences. In practice, your accountant and attorney work together sharing records and issues — start by confirming what combination your stage of the case requires.

Fees depend on the stage (pre-assessment review, Tax Tribunal appeal, court litigation), the complexity of the issues, and the amount in dispute. At the first consultation we assess the assessment and its issues, then provide a written, stage-by-stage scope and fee; any change in scope is discussed in advance. The structure of fees, including any performance-linked component, is explained precisely in consultation in light of the case type and applicable rules. Procedural costs also differ by stage, so plan fees alongside the overall timeline.

Filing an appeal does not suspend the duty to pay. Late-payment penalties keep accruing past the due date and enforced collection can proceed separately (deferral of seizure and sale is available under the National Tax Collection Act in some cases). In practice, taxpayers who can afford it often pay first, contest, and recover with refund interest if successful. Depending on the case, collection deferral may be available — set the payment strategy with counsel alongside the appeal.

A lawsuit must be filed within 90 days of receiving notice of the Tribunal (or NTS review) decision (Framework Act on National Taxes art. 56(3)), and this deadline is strictly enforced. Litigation follows formal rules of evidence and argument, so the case must be re-designed from the Tribunal record. The rejection decision states why your arguments failed — it is the starting point for litigation strategy, so review it with counsel immediately.

The facts supporting taxation must in principle be proven by the tax authority. Courts, however, shift the practical burden to the taxpayer where the relevant materials lie within the taxpayer’s control, and many issues — proving expenses, rebutting gift presumptions — effectively require the taxpayer’s substantiation. Outcomes turn less on abstract doctrine than on who presents books, contracts, and money flows more coherently. Start by assessing what your records can prove.

Yes. A denial of a correction claim is itself an appealable disposition: within 90 days of the notice you may file a Tribunal appeal and then a lawsuit to cancel the denial (Framework Act on National Taxes arts. 45-2, 68). In denial cases the grounds and evidence in the original claim form the skeleton of the whole dispute, so also assess whether grounds can be added or reinforced at the appeal stage.