Only 30% of taxpayers who appeal to the Dispute Resolution Division (DDR) of the Independent Public Revenue Authority (AADE), contesting tax and fine imposition decisions of the tax administration, he is right, while for the remaining 70% the appeals are rejected, essentially leading the cases to the administrative courts.
For the “lucky” ones the TEN, after examining their cases, canceled fines, surcharges and extra taxes imposed by the tax control mechanism for tax violations.
According to the official data of AADE between January and June 2023, 4,173 cases were referred to the TEN and 4,011 taxpayer appeals were adjudicated. Of these cases, the TEN ruled that in 1,210 cases or a percentage of 30.2%, the taxpayers were right to request total or partial cancellation of imputed taxes, surcharges and fines.
On the contrary, the remaining 2,553 were rejected with the percentage being high as it reaches 63.4%, 21 entered the file due to the resignation of the appellants and 247 were implicitly rejected, because the 120-day margin for the examination of appeals expired.
Appeal to the courts
As ertnews.gr writes, businesses and commercial entities that are not vindicated by the TEN have the option of appealing to the administrative courts, since, based on the current legislation, tax cases must first “pass” through the Dispute Resolution Division before reaching the courts.
According to the consolidated data of AADE, since 2013, when the TEN began to operate, 85,855 appeals have been submitted, of which 81,903 have been adjudicated. Moreover, based on the results, in 19,817 cases the TEN annulled the decisions of the tax audit mechanism and vindicated the taxpayers, while 43,432 appeals were rejected.
From the beginning of 2023 and specifically from February 1st, when single-page appeals must be submitted only electronically, the number of businesses and professionals choosing this particular path before going to court is increasing.
The mandatory online submission of an appeal it does not apply to taxpayers resident abroad, who are provided with the option of handwritten submission as an alternative. Also, according to ertnews.gr, in case there is a proven inability to submit digitally, handwritten submission to the competent tax authority is possible.
The application
Taxpayers who choose to resolve their disputes with the tax administration out of court should be aware that:
– The application is submitted, exclusively electronically, on the website www.eefdd.gr and receives an electronic file number.
– The application is signed by a lawyer and mentions the name, surname, patronymic, tax registration number, e-mail address and the exact address of the residence of the taxpayer, his legal representative and his representative, if designated, and if submitted by a legal entity, association of persons or property group, their name and registered office, tax registration number, as well as the name, surname, patronymic, tax registration number, e-mail address and the exact address of residence and workplace of their legal representative.
– In the application, a brief reference is made to the reasons, which, in the judgment of the applicant, establish the request, namely:
a) Limitation of the State’s right to impose the disputed tax or fine due to the lapse of time, within which the Tax Administration had the right to charge them.
b) Prescription of the State’s right to impose the disputed tax or fine due to receipt of a tax certificate without reservation.
c) Incorrect calculation of the tax or fine due to a manifest lack of tax liability or a numerical error.
d) Retroactive application of the most favorable tax sanction in accordance with what has been accepted by the jurisprudence of the Supreme Court.
e) Reduction of additional tax, interest, surcharges and fines.
– The Committee decides by majority and the meeting can also be held electronically. In the event that the Commission deems the application inadmissible, it notifies the applicant of the cancellation of the out-of-court settlement. If the application is deemed admissible, the claims are examined based on the case law and the established practice of the Tax Administration. In these cases, the application may be partially or fully accepted.
– The applicant may accept the Commission’s proposal, within 5 working days of its notification, by signing himself in the case of a natural person or his legal representative in the case of a legal person and posting a scanned copy of the proposal on the website www.eefdd.gr Committee, in which he has put his signature, with a view of its authenticity, until the expiration of the 5th working day from the electronic notification to him of the above proposal. Partial acceptance of the Commission’s proposal is not allowed.
– Upon resolution of the dispute and provided that at least 30% of the main tax due is paid by the taxpayer, within 10 working days of signing the compromise, the amount of the debt is paid in up to 24 installments and a discount is provided on additional taxes, interest, surcharges and fines which amount to 75% if paid in 1 installment, to 65% for 2-4 installments, to 55% for 5-8 installments, to 50% for 9-12 installments, to 45% for 13-16 installments, in 40% for 17-20 doses and in 35% for 21-24 doses.
– If a percentage of at least 30% of the main tax due is not paid, within the prescribed period from the acceptance of the Commission’s proposal, and the payment of the whole amount is not legally allowed, as well as if 2 consecutive monthly installments are not paid or the payment of the 2 is delayed of the last installments for the respective period, the settlement is retroactively reversed, it is deemed never to have occurred and any sums paid are deemed to have been paid against the original debt.
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