Monthly Archives: April 2022

In early April, the Hungarian Tax Authority (NAV) published its audit plan for 2022. Below is a summary of the main areas of audit. The detailed document is available on the tax authority's website .

DISCLOSURE

As in previous years, the tax authority will continue to support taxpayers who behave lawfully and cooperate, while using all possible means to take action against taxpayers who deliberately evade tax.

The NAV determines the specific action (compliance investigation, tax and customs audit, support procedure) based on the risk analysis, the severity of the risks and the willingness of taxpayers to comply with the law.

FOCUS AREAS

Based on the 2022 audit plan, the audit activity of NAV will focus on four main areas.

1. Audit of activities with significant budgetary risk

This includes, among others:

• sellers on websites, portals,
• producers and distributors of food products; construction/building materials traders,
• (used) motor vehicle and motor vehicle parts trade/repair,
• real estate agents; persons engaged in the sale of computer products.

2. Verification of taxpayers with a fiscal revenue risk applying a targeted risk analysis based on available data

In this area, the tax authority mainly analyses data from online reporting, international information exchange and the "Employee Alert" system and takes the necessary audit measures where appropriate.

It is designated as a priority area:

• exploring chains of invoicing,
• audits of taxpayers associated with and earning profits from non-cooperative countries based on risk analysis, in particular transfer pricing,
• detecting fraudulent taxpayer behaviour related to high labour-intensive employment, such as temporary agency work, property protection and cleaning; and
• comprehensive audit of e-commerce and specifically import activity.

3. Audit of priority taxpayers

Audits of the top and highest-performing taxpayers remain in the focus of NAV's audit activity.

Within this, the risk analysis of data received from the international exchange of information (country-by-country reports, cross-border transactions) will be more focused on the audit of cross-border transactions in 2022.

4. Support for voluntary compliance

In this area, NAV conducts support procedures based on a continuous risk analysis according to the severity of the risks and the willingness of the taxpayers concerned to comply with the law.

On the other hand, it monitors fundamental deviations on an ongoing basis. The focus in this area includes:

• newly created enterprises and enterprises with personnel changes,
• data of the Online Invoice System and obligations relating to the Online Cash Register,
• companies that do not submit a VAT return, or that declare a zero tax liability however operate according NAV in-house audit, have a VAT difference when reviewed the data available at NAV in-house, or taxpayers "waking up from dormant status",
• tax returns containing personal income tax refund claims.

In addition to the above, the tax authority's audit plan details the main lines of the audits planned for 2022 (supporting procedures, ongoing tasks, thematic tasks).

 

A témához kapcsolódó korábbi cikkeink:

Mit lát az adóhatóság? – 1. rész – TruTax

Mit lát az adóhatóság? – 2. rész – TruTax

NAV: Mesterséges Intelligencia Munkacsoport – TruTax

Határon átnyúló ügyletek jelentése: gyakorlati kérdések és válaszok – TruTax

Székhelyszolgáltatók: működéssel kapcsolatos előírások és Pmt. szerinti ellenőrzési tapasztalatok – TruTax

In our first article, we looked at the work of judicial tax experts and their role in our legal system, whether it is an administrative, civil or criminal case, or a simple dispute between two parties. We looked at the difference between seconded and contracted work.

In the second part, we will look at the practical side of expert work, with a few examples. We briefly present issues and cases where the involvement of a judicial tax expert assisted to resolve the case in a professional and overall cost-effective manner, avoiding time-consuming litigation.

Example of specific expertise in estimating the tax base

In many situations in business life, the tax authority may conduct an investigation of a taxpayer who carries out an activity that is specific to his or her profession or business. If the unique nature of the business is not negligible, it should be taken into account, for example, when estimating the tax base. Clarification of this may require specific expertise, which may necessitate the appointment of an expert in the relevant tax field if it is relating to VAT, corporate income tax or personal income tax. In a number of cases, an expert has assisted, for example, in the review of a complex VAT apportionment method.

Transfer pricing as a special area of taxation

It is also good to know that the involvement of an expert can be initiated in a procedure by the tax authority, but also by the taxpayer itself. In fact, the taxpayer may also propose the expert in a transfer pricing case, for example, if it is of the opinion that specific transfer pricing expertise is required. The taxpayer may have good reason to do so - which has already happened in several court cases - for example, if the tax authority is investigating a complex transaction between related parties e.g. being a licensing, financing transaction or sale of goods, supply of services.

In such cases, an international database search can be used to make a well-founded case and, for example, to find comparable contracts or, where applicable, comparable companies, which can help to convince the tax authority or the opposing party regarding the correctness of the corporate income tax or local business tax base and the innovation tax base, thus preventing the assessment of tax shortage and significant penalties.

Determining the value of companies, or estimation of profits not generated or damages

In many cases, a tax expert or an auditor may be delegated when the market value of a company's shares, participations or assets needs to be determined. The purpose of this may be, on the one hand, to establish whether tax avoidance has taken place in relation to companies or even individuals. In such cases, the expert will consider the particularities of the company or asset in question and, on the basis of all the circumstances of the case, determine the valuation method or set of methods (for example, by weighting several methods) by which the market price can be determined.

On the other hand, it is very common for an expert to be appointed in matrimonial property division cases, so that the court can decide on the correct division of the property involved. In such cases, the expert can assist the court in "deciding" the dispute between the parties on the basis of facts and data, based on calculations that are well known in the profession (the role of the judge of facts).

It also happens that in a compensation case, the expert helps to determine the amount of lost profit or damage, for example in relation to an activity, using well-known economic method(s).

Summary

As can be seen, the range of cases in which the involvement of a judicial tax expert can be useful in resolving a dispute can be extremely wide. It may therefore be worthwhile to consult such an expert if you have a different view on a tax issue from the opposing party being a company, an individual or the tax authority.

Finally, we would like to draw our readers' attention to the fact that the court may not avoid the appointment of a judicial tax expert if it is necessary for the resolution of the dispute and the legal conditions for his/her appointment are met.

Adótanácsadó cégünk további fejlődésnek indult, így ha megfelelsz az alábbi elvárásoknak és tetszenek az általunk biztosított feltételek, akkor mindenképpen vedd fel velünk a kapcsolatot az  e-mail címen.

Below we collected the most important notices and guidelines published on the Hungarian Tax Authority’s website in recent weeks.

Ukrajna – Behozatali korlátozás (2022.03.01.)

Fizetési nehézségek kezelése például a Sberbank ügyfelei számára (2022.03.03.)

Felhívás az orosz-ukrán konfliktus miatt elrendelt uniós szankciókról (2022.03.03.)

Adózási könnyítések a kisbenzinkutaknak (2022.03.08.)

7004/2022. felhívás a belarusz helyzetre tekintettel elrendelt uniós szankciókról (2022.03.08.)

Jövedéki adó fajtakódok (2022.03.11.)

Tájékoztatás az Oroszországgal és Belarusszal szemben elrendelt kiviteli szankciók módosításáról (2022.03.11.)

A Sberbank végelszámolásával kapcsolatos adózási kérdések (2022.03.12.)

Tájékoztató a jegybanki alapkamat változásáról (2022.03.22.)

Jegybanki alapkamat/ Central Bank base rate/ Leitzins der Zentralbank/ Taux de référence de la Banque Centrale (2022.03.22.)

Tájékoztatás az Oroszországgal és Belarusszal szemben elrendelt újabb szankciókról (2022.03.22.)

7007/2022. felhívás az Oroszországgal szemben elrendelt új uniós szankciókról (2022.03.23.)

Támogatja az online hitelkérelmezési folyamatot a NAV elektronikus keresetkimutatása (2022.03.29.)