The Extended Chamber of the Supreme Administrative Court (SAC) has ruled: the subjective time limit for filing a supplementary tax return for lower tax does not apply
As we have previously informed you, a legal question has been submitted to the Extended Chamber of the Supreme Administrative Court (SAC) for consideration as to whether or not, in addition to the objective time limit corresponding to the time limit for the determination of the tax, a subjective time limit, which would run until the end of the month following the month, in which the taxpayer discovered that the tax was to be lower than the last known tax, would also apply to the filing of a supplementary tax return for a lower tax.
This is while the long-standing administrative practice of the tax administration, confirmed by case law, has been that both of these deadlines apply and the expiry of either of these deadlines will extinguish the taxpayer’s right to file an additional tax return for the lower tax.
However, this previous procedure has now been rejected by the Enlarged Chamber of the SAC in its decision No. 2 Afs 363/2019 – 50 of 5 September 2023, in which it came to a positive conclusion for tax subjects, which was supported by many arguments that:
The taxpayer is entitled to file a supplementary tax return for the lower tax within the tax assessment period. The subjective deadline set out in the first sentence of Section 141(1) of the Tax Code (by the end of the month following the month, in which the taxpayer discovered that the tax should be higher than the last known tax) does not apply to the filing of a supplementary tax return for the lower tax.
Author: Lenka Kočerová, Jaroslava Půtová