Abstract

The initiation by tax authorities of proceedings for a tax crime or misdemeanor in the course of tax proceedings in a situation when the limitation period for a tax liability is approaching for years has been controversial. In many cases, it is used by the bodies of the National Revenue Administration the right to initiate penal fiscal proceedings was limited to notifying the taxpayer pursuant to Art. 70 § 6 point 1 of the Tax Ordinance without the tax authority taking any steps under the fiscal penal procedure. The financial bodies of the preparatory proceedings intended only to have the effect of suspending the limitation period for the tax liability. On the other hand, the continuation and termination of this proceeding remained beyond the scope of their interest. The critical position towards this kind of practice of the tax authorities has been expressed in the judgment of the Supreme Administrative Court of 30 July 2020, file ref. no.I FSK 128/20 and reference number act I FSK 42/20. It indicated that the instrumental initiation of fiscal penal proceedings, constituting an abuse of constitutional principles and rules that are upheld by EU law, does not have the effect of suspending the limitation period for a tax liability. This ruling, although binding only in individual cases, gives taxpayers hope to discontinue fiscal penal proceedings initiated against them, which is an important step towards eliminating reprehensible practices of tax authorities aimed in fact at extending the limitation period for tax liabilities.