A declaration submitted after the deadline does not have to be expensive

Service-Tax

The declaration submitted after the deadline means that the entrepreneur may be punished with a tax mandate. The provisions of the Fiscal Penal Code do not, however, require tax office employees to impose absolute fines for each offense. Yes, when submitting and paying for the overdue tax declaration, the taxpayer is obliged to calculate and pay interest, but does not have to be punished with an additional tax fine.

Declaration submitted after the deadline - interpretations

In order to clarify the issue of the abuse of fines in relation to taxpayers who did not submit VAT returns on time, a parliamentary question was sent to the Minister of Finance (No. 16947). In response, the representative of the ministry pointed out that the mere failure to submit a declaration or declaration within the time limit agreed by law is: "an act of a formal nature, not related to the emergence of tax arrears". However, this is an act considered, in accordance with the Fiscal Penal Code, as a fiscal offense punishable by a fine.

In principle, therefore, it is difficult to prove that the imposition of a fine is a violation of regulations by the tax authority in a situation where the taxpayer did not submit the declaration on time. Unless the code provides otherwise, a fine may be imposed by way of a mandate in a situation where the person and the circumstances of committing a tax offense do not raise any doubts and when there is no need to impose a more severe penalty.

On the other hand, the Ministry of Finance itself notes that the role played by the provisions of the Act of 10 September 1999, Fiscal Penal Code, is to discipline taxpayers to act in accordance with the law and to intervene where the provisions have been violated. Therefore, the main role of tax authorities should not be to punish, but to carry out preventive and informative activities. Only when it is noticeable that the taxpayer repeats actions that violate the provisions, the penalties provided for by the Fiscal Penal Code should be applied.

Each case has an individual character, so the tax authorities should be sensitized to the purpose of their existence and the representatives of the tax office should be warned against imposing fines “automatically”. The code itself says that it is not a tax offense or a tax offense, a prohibited act with negligible social harm.Thus, if the taxpayer has paid the tax debt, but only has not submitted the declaration within the statutory deadline, it seems that in such a case it cannot be considered that the social harmfulness of the committed act is here greater than negligible, and the tax authority may then refrain from imposing tax fines on the taxpayer. .