When a deadline to be observed by taxpayers starts upon expiry of the year in which the tax is incurred and when the year ends on a Sunday, a public holiday or a Saturday, the assessment deadline for claims under the tax obligation will only end upon expiry of the subsequent business day.
Tax authorities had rejected assessment
In a case decided by the Federal Fiscal Court, a tax deduction had been made from the taxpayer’s income from employment. In this case, an assessment is only carried out upon application, which is made by filing an income tax return within the assessment period expiring at the end of the year. The end of the assessment period for the taxpayer’s application was a Saturday (December 31). Since the taxpayer had filed the application only on the business day following the Saturday, thus on Monday, January 2, of the subsequent year, the tax authorities had rejected the assessment.
Assessment period was a defined, determined or determinable period
The Federal Fiscal Court allowed the taxpayer’s complaint and held that the assessment period was a defined, determined or determinable period, which therefore did not end on a weekend or holiday. Since the filing of a tax return additionally is an application that is stopping an expiry, the assessment period would not expire prior to issuing a final decision on said application.
Although the proceedings ended favorably for the taxpayer, the following applies: When it comes to deadlines, close attention should always be paid and advisers need to be informed in time. The tax authorities will show no ‘mercy’. Our specialized attorneys are looking forward to assisting you with any tax issues.
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