Tax litigation – unexploited opportunities

Survey on legal remedies in tax controversies

Today, Hungarian courts hearing public administration cases and the European Court of Justice both play an increasingly important role in establishing legal practice in the field of tax controversies. The appropriate mapping of potential legal remedies is ever more important if taxpayers want to take an effective stand against authority resolutions in contested matters. 

Deloitte Hungary conducted a survey among Hungarian medium and large companies regarding legal remedy proceedings launched in tax issues to obtain a clear view of Hungarian legal practice and potential unexploited opportunities.

Main topics of the survey: 

  • Appeals against tax authority resolutions 
  • Judicial review and supervisory procedure 
  • Introducing the option of legal remedy
  • Opinion on the courts

In spite of the positive tendencies in the expertise of courts, companies do not yet trust that court resolutions will go against authority positions. Our experience, however, shows that such fears are unjustified: contested authority resolutions may efficiently be challenged based on well structured and represented legal arguments. Other concerns are the length of procedures, the required resources and additional costs, which can be greatly reduced e.g. through a success fee arrangement or by engaging an expert who learned about the case already during the administrative phase. Taxpayers are typically not aware of the detailed rules (especially regarding court procedures) even though these are essential. If, however, one disposes of the appropriate technical knowledge and experience, challenging unlawful authority resolutions before the court should be considered; further, authority resolutions should also be reviewed in light of the provisions of EU law.

Click here to read more about the survey on legal remedies in tax controversies.

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Szarvas, Falcsik and Partners Law Firm - Correspondent law firm of Deloitte Hungary