Tax disputes
Tax dispute support is for companies, sole proprietors and non-profit organisations that have received a tax audit report or a tax assessment notice with additional charges and penalties. There is no need to rush to pay: in our experience most audit reports contain errors by the inspectors that give lawful grounds to challenge the decision in full or in part.
The client receives an analysis of the report with an opinion on the prospects, drafted objections and appeals, and representation before the tax service and in court. What sets MK Audit apart is that auditors and lawyers work on the dispute together: the auditor checks the figures and the accounts, the lawyer builds the legal position. The firm has handled tax disputes for more than 20 years.
What is included
- analysis of the audit report and the tax assessment notice, assessment of the strengths and weaknesses of the company’s position;
- verification of the inspectors’ calculations: additional charges, fines, interest, the provisions applied;
- preparation of objections to the audit report and participation in their review;
- administrative appeal: complaint to the higher-level tax authority and participation in its review;
- judicial appeal: statement of claim, evidence, representation in administrative courts of all instances;
- support during the inspection itself: preparation of documents and explanations, communication with inspectors, monitoring of procedure;
- preparation for an inspection: a tax audit and correction of errors before the inspectors arrive;
- advice to the director and the accountant on how to act during questioning and information requests.
Who needs it
- LLCs, representative offices of foreign companies and sole proprietors that have received an audit report with additional VAT, corporate income tax, personal income tax or social contribution charges;
- non-profit organisations and charitable foundations threatened with removal from the non-profit register or charged tax on payments to individuals;
- donor-funded projects where inspectors question the targeted use of funds or the exemptions provided by international agreements; in such cases a grant audit is useful evidence;
- companies whose VAT invoices were refused registration or whose VAT limit was blocked;
- businesses that have received a tax information request and want to reply without triggering an inspection.
Administrative or judicial appeal
| Criterion | Administrative appeal | Judicial appeal |
|---|---|---|
| Where it is filed | With the higher-level tax authority | With the district administrative court |
| Filing deadlines | Short, counted in working days from receipt of the decision | Longer, depending on whether the administrative appeal was used |
| Payment of charges | The liability is treated as not agreed until the procedure ends | The liability is treated as not agreed until the court decision takes effect |
| Costs | No court fee | Court fee and more time |
| When appropriate | Obvious errors in the report, procedural violations | Dispute over interpretation, a large amount, rejection of the complaint |
The two routes can be combined: first an administrative complaint, then a court claim if it is rejected. Deadlines at every stage are short, so it is best to contact us as soon as the audit report arrives, not the assessment.
How the work proceeds
- Request and proposal. You send the report or the assessment notice, we assess the prospects and within 1 day send a proposal with an action plan.
- Contract and checklist. We sign the contract, agree the appeal strategy and the list of documents to be collected.
- Execution. We prepare the objections, the complaint or the claim, represent the company before the tax authority and in court, and respond to new arguments from the inspectors.
- Result and support. We deliver the decision, monitor its enforcement and help correct the accounts so that the situation does not repeat.
Documents you will need
- the audit report with annexes and the tax assessment notice;
- the inspection order and referral, tax information requests and your replies;
- primary documents and contracts for the transactions being challenged;
- tax returns and accounting registers for the audited period;
- for non-profit organisations: the charter, the decision on entry into the register, donor agreements;
- correspondence with counterparties if the dispute concerns the reality of transactions.
Timing
We prepare the analysis of the report and the opinion on prospects within two to three working days. Objections and the administrative complaint are filed within the deadlines set by the Tax Code, so it is important to hand over the documents immediately on receipt. Court proceedings at first instance usually take several months.
Leave a request in the form below: a commercial proposal after we review the task, reply within 1 day.
Do we have to pay the additional charges while the appeal is pending?
No. While an administrative or judicial appeal is pending, the tax liability is treated as not agreed and is not payable. The key is not to miss the deadline for filing the complaint or the claim.
Can we win if there really was an error in our accounts?
Often yes. Inspectors frequently miscalculate the amount, apply the wrong provision or breach the inspection procedure. The auditor recalculates the amount, the lawyer checks the procedure, and even with a genuine error the charge can be substantially reduced.
Do you work with non-profit organisations?
Yes, it is one of our core niches. We know the requirements for charters, reporting and payments to individuals, so we can prove to the tax authority that the organisation complies with the non-profit conditions.
Does the director have to attend the tax office and court?
No. Under a power of attorney we represent the company at all stages. The director’s presence is needed only in exceptional cases, and we prepare them for such meetings.