Amendments to the Law include both new provisions and changes to the existing ones. What is particularly important is that the respective changes indicate the increase of tax discipline, i.e., control of the application of regulations and sanctioning of improper conduct.
New provisions
The following new provisions of the Law are of special importance:
- It is now prescribed that the Tax Administration, i.e., Tax Police shall appoint an ex officio defence attorney to a suspect who failed to provide such attorney for the hearing in the pre-investigation procedure, instituted due to the existence of grounds for suspicion that he/she has committed a tax offence for which a prison sentence of eight years or more is prescribed. No appeal is allowed against this decision, whereas the Tax Administration shall pay the reward and necessary expenses of the ex officio defence attorney.
- Criminal offense of Unauthorized sale of fiscalization equipment was introduced.
- Also, criminal offense of Illegal sale of accounting and other software was established.
Changes to the existing provisions
In addition to the above-mentioned amendments to the Law, certain provisions thereof were amended as follows:
- An exception has been introduced to the rule that the tax return must be submitted in electronic form, by prescribing that tax payers – natural persons who are required to submit a tax return which is not related to the performance of their business activities, can submit the tax return in both electronic or written form – directly or by post, except for the tax return for the annual personal income tax, which is submitted exclusively in electronic form.
- In relation to the commencement of the forced procedure of tax collection, the provision pursuant to which the Tax Administration was not obliged to issue a decision on the forced tax collection if the request for postponement of tax payment was submitted within the deadline prescribed by the Law – until a decision on such request is made, and provided that other prescribed conditions have been met, has ceased to exist. Accordingly, this possibility of postponing the decision of the Tax Administration on forced tax collection is no longer prescribed by the Law, thus such conduct is not allowed.
- It is prescribed that the measure of prohibition of performing business activity shall be imposed on a taxpayer who has been found to have certain irregularities in the course of a tax audit: (i) for a duration from 15 days (instead of up to 15 days) if an irregularity is determined for the taxpayer for the first time; (ii) for a duration from 90 days (instead of up to 90 days) if an irregularity is determined for the second time; and (iii) for a duration from one year (instead of up to one year) if an irregularity is determined for the third time. Exceptionally, for a taxpayer who performs its business activity in the venue of manifestations (fairs, festivals, exhibitions and other manifestations as part of cultural, musical, sports and other social activities) this prohibition shall be imposed for the entire duration of such manifestation.
- Additionally, it is stipulated that, if the taxpayer – within two years from the final and binding conviction for the following misdemeanours: (i) the taxpayer did not file a tax return, calculate or pay the tax; (ii) the taxpayer did not file a tax return, whereas it calculated and paid the tax; (iii) the taxpayer filed a tax return, but did not pay the tax; (iv) the taxpayer did not file a tax return in cases where it is prescribed by the Law not to carry out self-taxation, or upon the order of the control authority; commits the same misdemeanour, in addition to a fine, a protective measure of prohibition of performing certain activities for a period of six months up to three years may be imposed on the taxpayer. This is also prescribed with respect to a responsible person with the taxpayer – legal entity.
Entry into force
The respective amendments to the Law entered into force on the eighth day following their publication in the Official Gazette, i.e., on December 20, 2022.