Abstract

Tax loss is not a tax liability within the understanding of Article 5 of the Tax Ordinance Act. Statute of limitations on a tax liability somewhat automatically refers to a tax loss. A distinct position, according to which these elements do not fall within the statute of limitations, would lead to a situation when a taxpayer could never be certain of their legal situation because at any given moment they might be a subject to tax proceedings. Tax loss, just like a tax liability, is a result of a tax declaration for a specific period. Initiating criminal and tax proceedings only in order to accomplish the objective in a form of suspending the course of statute of limitations should be regarded by the court as an instrumental initiation of proceedings and recognised as irrelevant.