Limitation period for taxes

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

One of the most difficult disputes in law practice are tax disputes, where the most important issue when bringing a subject to administrative responsibility is the statute of limitations for taxes. The legislation establishes a certain period during which the debtor is supposed to collect payment, but it depends on the specific situation. In some cases, only an experienced lawyer can resolve the issue.

The general limitation period for taxes and fees is set by tax legislation at three years. Civil law adheres to the same rules, but in some cases the limitation period for taxes can be extended or reduced. To date, there are three types of statute of limitations:

- minimum (2 months to make a decision on the recovery of unpaid amounts);

- shortened (up to 1 year);

- total, duration, which corresponds to the time allotted by law (3 years).

For example, the statute of limitations for transport tax until 2010 was not prescribed in any legislative act, so the general term was used in litigation. Based on the amendments made, it was found that the tax inspectorate can present a taxcollection only for the previous 3 years. In other words, if in 2013 you received a notification from the tax service about the payment of transport tax for 2012-2009, then the receipt for 2009 can be safely sent to the trash can - no one has the right to oblige you to pay tax for which the statute of limitations has expired.

Any coercion will be considered illegal. In case of non-payment of taxes for the current periods, the tax inspectorate has the right to apply to the court. In addition to the fact that there is the prospect of lengthy litigation, you will also not be able to go on vacation abroad. Therefore, it is better to solve problems as they arise.

The general tax limitation period applies to taxpayers of all categories. During this time, liability may arise in the event of any violation or tax evasion. But only the last three years of management, including the current one, are subject to verification. In the event of obstruction by the taxpayer, the period may be extended. If, during the audit, violations were revealed, within 1 calendar year, the tax inspectorate may hold the guilty person liable. This period will not be shortened or extended under any circumstances. If the decision was made, but the tax authorities did not go to court, the taxpayer is not obliged to comply with the decision.

This is why the tax statute of limitations is causing so much litigation. The absence of a clear, defined system leads to the fact that both taxpayers and tax inspectorates cannot accurately determine the correct time period for applying to the court, which negatively affects the state of the country's budget. The amount to be written off due to the statute of limitations is already enormous.