Appeal against wrong decision of the tax authority?

Service-Tax

The taxpayer does not have to agree with the decision of the head of the tax office, the director of the customs chamber or the director of the tax chamber. If he believes that the decision is incorrect or the procedure has been defective, he may appeal to a higher instance body. How do I properly file an appeal?

Knowledge of the structure of the tax apparatus is an extremely important factor in the entire process of running a business. The final effect of any tax disputes depends on the knowledge or ignorance of the taxpayer. In short, the entire tax apparatus is differentiated into the tax collection apparatus (tax offices and tax chambers), the customs apparatus and the fiscal control apparatus (fiscal control offices, tax inspectors, General Inspector of Fiscal Control). The superior body that controls the overall fiscal apparatus is the Ministry of Finance headed by the Minister of Finance. However, pursuant to Art. 223 § 1 of the Tax Ordinance, an appeal against a decision is submitted to the competent appeal body via the body that issued the decision. However, it is worth remembering that the taxpayer is obliged to comply with the first decision issued by the tax office, and only then to challenge the decision and assert his rights.

Where to appeal against the decision of the tax office?

Any entrepreneur who believes that the decision issued by the tax office examining his case is wrong, has the right to appeal to the director of the tax chamber. However, this may take place within 14 days from the date of receipt of the decision. Pursuant to the applicable law, the appeal, made in writing, is addressed to the director of the tax chamber with jurisdiction over the place of residence. They are submitted to the head of the tax office who issued such a decision (in person, by registered mail or by an official e-mail). This is because the tax office is authorized to verify its own mistakes. Therefore, it may happen that the head of the tax office recognizes the appeal and issues a new decision, then it will not be necessary to consider the case in the tax chamber.

What happens if the tax office does not recognize the appeal?

If the head of the tax government does not recognize the taxpayer's appeal, he is obliged to submit the letter to the competent tax chamber within 14 days from the date of receipt of the letter. Along with the appeal, the tax office provides the chamber with the case files.He must also respond to the charges presented by the taxpayer. The tax office is not obliged to inform the taxpayer about the transfer of the appeal to the tax chamber, however, as a rule, a notification is sent to the party to the proceedings about this fact.

When the case is submitted to the tax chamber, it has two months to consider it. However, in some cases, when the dispute is too complex, the time limit may be extended. When such a situation occurs, the tax chamber must send a notification to the taxpayer and justify the extension of the time limit for considering the case and provide the approximate time of its completion. During the investigation, the taxpayer may take part in the taking of evidence, has the right to ask questions to witnesses and experts, and may provide explanations. It may also withdraw its appeal.

Pursuant to Art. 233. § 1 of the Tax Ordinance, the director of the tax chamber, after considering the appeal, may:

  • maintain the decision of the tax office in force - if it decides that it is lawful, the taxpayer was wrong,
  • revoke the decision of the tax office in whole or in part and rule on the merits of the case in this respect - if it fully or partially takes into account the taxpayer's reservations,
  • revoke the decision of the tax office in whole or in part and discontinue the proceedings in the case - if, after conducting its own explanatory proceedings, it comes to the conclusion that the contested decision is defective and should be eliminated, and further proceedings have no legal basis

The director of the tax chamber may also, in accordance with Art. 233. § 1 of the Tax Code, after considering the appeal:

  • revoke the decision in its entirety and refer the case for reconsideration to the competent tax office - when the case requires re-examination,
  • discontinue the appeal procedure - when it has become redundant.

Where to appeal against the decision of the tax chamber?

The decision of the tax chamber is irrevocable. This means that the taxpayer is no longer entitled to appeal against the decision. When issuing a decision, the Tax Chamber should, however, take a position on all the allegations raised by the taxpayer in the appeal. If the taxpayer has not complied with this requirement or if the taxpayer still has reasonable doubts as to the correctness of the decision issued by the tax chamber, he may take legal action and bring an administrative process to the tax chamber. Complaints against the decision of the tax chamber are submitted, through this chamber, to the voivodship administrative court within 30 days from the date of its receipt.

Where to lodge an appeal against the decision of the customs office?

The same appeal process as in the case of the tax office also applies to appeals against decisions of the head of the customs office. An appeal against the decision, addressed to the director of the customs chamber, may be lodged within 14 days of receipt of the decision by the head of the customs office. Also, the head of the customs office, as the first instance body in the matter of settling disputes of taxes and customs duties, has the right to 14-day verification of own errors and to favorably respond to the taxpayer's appeal. If the head does not find an error in issuing the decision, then the taxpayer's appeal, together with the case files, must be forwarded to the customs chamber. The customs chamber must respond to the situation within 2 months. And if the taxpayer still does not agree with the issued decisions, the case may be appealed against to the provincial administrative court.