Appeal to the Provincial Administrative Court against a tax decision – formal requirements and deadlines
Receiving an unfavourable tax decision from the second-instance authority does not necessarily mean a definitive defeat in a dispute with the tax authorities. The taxpayer has the right to appeal against such a decision to the Provincial Administrative Court (WSA).
It should be emphasised, however, that the effectiveness of judicial protection is strictly dependent on compliance with strict deadlines and the fulfilment of formal requirements, which are subject to meticulous scrutiny at the preliminary stage of administrative court proceedings.
Conditions for the admissibility of an appeal and the jurisdiction of the court
An appeal to an administrative court is admissible only after all remedies in the administrative procedure have been exhausted. In practice, this usually means that only a final decision issued by an appeal body is subject to appeal. Administrative courts review the legality of decisions, examining whether, during the proceedings, there was a breach of substantive or procedural law to an extent affecting the outcome of the case.
The Regional Administrative Court (WSA) within whose jurisdiction the headquarters of the authority whose decision is the subject of the complaint is located has local jurisdiction to hear the case.
Time limit and procedure for lodging a complaint
The complaint must be lodged within 30 days of the date of service of the tax decision. This is a strict time limit, meaning that exceeding it results in the loss of the opportunity to challenge the decision. When calculating this period, it should be noted that the time limit begins on the day following the date of service of the decision. If the last day for lodging the appeal falls on a Saturday or a public holiday, the deadline is extended to the next working day.
Indirect procedure for lodging a complaint
The complaint is lodged through the authority that issued the contested decision. That authority then has 30 days to forward the complaint, together with the case file and a response to the complaint, to the competent court.
Essential elements of the complaint
The complaint must meet the requirements applicable to procedural documents, and any shortcomings in this regard will result in a request to rectify them within 7 days, failing which the complaint will be rejected. The essential elements of the document include:
- Identification of the parties: the taxpayer’s full details, including their address, as well as the name of the competent authority.
- Reference to the decision: the exact number and date of issue of the contested decision.
- Grounds for appeal: a precise description of the legal breaches committed by the authority during the proceedings.
- Statement of grounds: a logical legal argument supported by facts and evidence from the case file.
- Value of the subject matter of the appeal (WPZ): this is stated where the subject matter of the appeal is a decision involving a monetary claim, on the basis of which the amount of the court fee and any costs of the proceedings to be awarded are determined.
Court fees and the mechanism for suspending enforcement
Lodging an appeal requires the taxpayer to pay a court fee. In cases where the dispute concerns monetary claims, a proportional fee is payable, calculated as a percentage of the value of the claim. In all other cases, a fixed fee is payable.
It should be noted that the mere lodging of a complaint with the Provincial Administrative Court does not suspend the enforcement of a final decision. In order to avoid the difficulties associated with potential enforcement, it is essential to submit an application to suspend the enforcement of the decision. In this application, the taxpayer must demonstrate that the enforcement of the decision would entail a risk of causing significant harm or resulting in consequences that are difficult to reverse.
Summary
Under the current legal framework, with stricter limitation rules, an appeal to the Provincial Administrative Court is an important tool for protecting the taxpayer. Systematic monitoring of cases and a precise strategy developed with a tax adviser make it possible to block the tax authorities’ claims and protect the company’s capital. If in doubt, consult an accountancy firm or a tax adviser.