The government’s amendment of Act No. 563/2009 Coll. on Tax Administration (Tax Code) entering into force on 1 January 2017 was published in the Collection of Acts on 15 November 2016 under no. 298/2016. The amended act is an effort to work towards fulfilling the current Action Plan to combat tax fraud and evasion, to which Slovakia has made a full commitment.
The complete text of the act can be found online at https://www.slov-lex.sk/pravne-predpisy/SK/ZZ/2009/563/20170101, while we highlight the most important changes and new features below that you should be aware of and that enter into force on 1 January 2017:
New institute in imposition proceedings – IMPOSITION ORDER – (§68a – Abbreviated imposition proceedings)
Tax administrator may issue an imposition order in an abbreviated imposition proceeding, if:
- the taxpayer does not resolve deficiencies in their tax return, even after being summoned by the tax administrator, and such deficiencies have an impact on the amount or applied entitlements without the commencement of a tax audit;
- tax administrator has sufficient evidence collected during tax administration to issue such order.
Within an abbreviated imposition decision, the tax administrator may issue a decision (“imposition order”) that levies a tax, or the difference in tax between the levied tax, or defines an amount, or a difference in the amount the taxpayer was obliged to pay under a specific regulation, or to which it applied entitlement under a specific regulation.
An appeal may be lodged against an imposition order within 15 days of the delivery of the imposition order itself, whereby
- such appeal must be objectively justified, and
- documents referenced in the appeal must be provided concurrently with the appeal, or other evidence related to the reasons presented in the appeal must be indicated.
An imposition order may only be examined by a court.
Amendment of §50 – Preliminary injunction
The primary objective of this measure is to ensure the timely detection and prevention of tax offences committed by taxpayers on a repeat basis that result in significant tax evasion. A taxpayer must do what the tax administrator requests in this preliminary injunction. If there are justifiable concerns that outstanding or un-levied tax will not be paid when due, or will otherwise be uncollectible, or if tax collection efforts encounter significant difficulties, the tax administrator may order the taxpayer to lodge a specific financial amount on the tax administrator’s account, or refrain from disposing of property or rights specified in individual decisions.
If the tax administrator orders a taxpayer to lodge a specific financial amount and if there is concern that the specified financial amount will not be lodged within the period identified by the tax administrator, the preliminary injection decision shall be exercisable on the date of issue and becomes enforceable!
The tax administrator simply delivers such a decision to the bank in which the taxpayer maintains an account. The bank then blocks their account for an amount equal to the tax arrears. If a taxpayer’s account balance is insufficient, the bank may then proceed to block all incoming payments.
- If an issued decision regards real estate, the tax administrator shall deliver the decision to the taxpayer and the real estate cadastre;
- If an issued decision regards a vehicle, the tax administrator shall deliver the decision to the taxpayer and the police;
- The tax administrator shall report the effective date of the decision to the real estate cadastre and the police.
Legal actions conducted in violation of a preliminary injunction are null and void!
New text and consequences for failure to comply with calls per §17 – Censure proceedings
Deficiencies are divided between those that affect tax and those that do not affect tax
- If deficiencies are identified in a taxpayer’s tax return that DO NOT affect the amount of tax (for instance, an incorrect SK NACE code or country is entered), the tax administrator shall call on the taxpayer in the censure proceeding to remedy the deficiencies within a term of no less than 15 days. If the taxpayer does not remedy the tax return deficiencies upon the call of the tax administrator, the tax administrator shall simply amend or conduct such remedy ex officio. If a tax return is not signed, or is submitted using the form that is not valid for the given tax period, the tax administrator shall send a call to remedy such deficiency in the tax return without penalty.
- If deficiencies are identified in a taxpayer’s tax return that DO have an impact on the amount of tax, or the amount that the taxpayer was to pay under a specific regulation, or to which it applied entitlement, the tax authority shall conduct a tax audit of the taxpayer, or levy tax in an imposition proceeding, or the difference in tax compared to the levied tax, or define the amount, or difference in the amount that the taxpayer was to pay under a specific regulation, or to which it applied entitlement under a specific regulation.
Consequences may be combined into a single call from the tax administrator.
The amendment limits the application of a lien for tax arrears up to €3,000 – §57 – Deferred tax payment and permission of instalments
Upon taxpayer request, the tax administrator may permit the deferral, or payment of tax in instalments exclusively if secured by a lien; security is not required if the amount of tax or unpaid taxes does not exceed €3,000.
The amendment lays down a more flexible approach for summons and presentation – §20
The amended act eliminated the tax administrator’s obligation to repeatedly summon a party whose involvement is required for tax administration purposes. The tax administrator must request that the responsible police department secure the presentation of such party.
Qualified electronic signature – legislative changes
Electronic filings are submitted via the electronic filing desk, or using the electronic filing desk on the central public administration portal and must be signed using a qualified electronic signature of the party submitting such filings. The term certified electronic signature is changed to “qualified electronic signature” as of 1 January 2017.
