Risks of Tax Authority Procedures
Tax audits and procedures are not merely administrative reviews—poorly handled audits can lead to criminal proceedings. The Hungarian Tax Authority (NAV) takes a strict stance against tax irregularities and may initiate immediate criminal proceedings in cases of suspected budgetary fraud or other tax and economic crimes.
Why Is Legal Representation Important in Tax Authority Cases?
- Serious Financial Risks: Decisions made during tax audits can result in substantial tax liabilities, fines, and late payment penalties. A well-prepared legal defense can reduce or even completely prevent sanctions imposed by the authorities.
- Effective Communication: Your statements during NAV proceedings play a crucial role. A poorly phrased response or incomplete documentation can lead to severe consequences. An experienced legal representative ensures that your interests are effectively protected.
- Preventing Criminal Proceedings: Experience shows that a timely legal strategy can often prevent criminal consequences or significantly reduce the associated risks. The collaboration between NAV and law enforcement agencies is becoming increasingly close, making it essential for taxpayers to receive proper legal protection from the very beginning. Any statement made or document submitted during a tax audit can later be used as evidence in a criminal case. If NAV detects suspected budgetary fraud or other violations, they are obligated to transfer the case to NAV's criminal department or the police.
- Utilizing Legal Remedies: If the tax authority issues an unfavorable decision, filing a timely appeal or legal remedy provides an opportunity for the decision to be reviewed and modified.
My Services
- Tax Audit Representation: Maintaining communication with the authorities, ensuring legal protection, preparing and submitting the necessary documentation during audit procedures.
- Tax Disputes and Appeals: Initiating legal remedies, requesting the review of decisions, and, if necessary, conducting court litigation.
- Mitigation of Sanctions: Reducing tax fines and other penalties through targeted legal arguments, influencing the authority’s decision with appropriate evidence and professional legal positions.
- Minimizing Criminal Risks: With the right legal strategy, criminal proceedings can be avoided. A tax audit can quickly turn into a criminal case if the authorities suspect budgetary fraud or other violations. A well-structured defense strategy can significantly reduce this risk.
Who Can Benefit?
- Businesses and company executives who want to ensure tax compliance and prevent potential regulatory sanctions.
- Individuals and sole proprietors undergoing tax audits who wish to avoid financial and legal consequences.
- Accountants and tax advisors seeking legal support for their clients in disputed tax matters, appeal procedures, or other tax-related legal issues.
- Companies subject to recurring tax audits, such as high-revenue businesses or those engaged in international transactions.
Don't Wait for the Situation to Escalate!
The sooner you secure proper legal representation, the greater the chance of avoiding sanctions and criminal risks. Timely expert intervention can not only help minimize financial losses but also play a crucial role in ensuring your business operates lawfully in the long run.
