Taxpayers should be asked to explain tax irregularities before being fined, says CoS

Taxpayers should be invited by tax authorities to provide explanations for any irregularities before being slapped with a fine, the Council of State ruled on Tuesday.

The ruling concerns a company which was audited and fined with 493,015 euros for the year 1998. The company went to court claiming that the legal procedure deriving from article 20, which obliges tax authorities to invite the company to explain any discrepancies, was ignored.