Amendments to the Tax Ordinance are under way
The commencement of proceedings for a tax offence will no longer suspend the running of the tax limitation period. Such changes are to take place from June 2023. - According to media information on the Ministry of Finance's work on the draft amendment to the Tax Ordinance.
The draft itself has not yet been published, so it is difficult to assess the specific proposals. However, if, in fact, the commencement of proceedings for a tax offence or misdemeanour will not suspend the running of the limitation period – there will be a very big change. So far, in practice, it has been very common for such proceedings to be initiated just before the expiry of the 5-year limitation period. All just to suspend it.
The same draft is also to introduce regulations that will allow tax officials to block entrepreneurs’ savings accounts, and for a longer period of 96 hours. Today, the blocks only apply to company accounts and can be blocked for a maximum of 72 hours.
The draft is currently at the internal consultation stage. When it is published, we will certainly analyse it and discuss the planned changes.