Managing tax disputes is a specialised skill that demands extensive knowledge of tax laws, proficiency in procedural matters, and the strategic acumen to navigate the process successfully and achieve the best possible outcomes. KPMG is an established, significant, and professional service provider in managing a wide range of tax dispute processes, as demonstrated by last year's statistics.
In 2024, the Supreme Administrative Court (SAC) resolved a total of 58 tax cases (this figure does not include decisions on extraordinary requests, which were not published as precedents). Of the decisions issued by the SAC, 29 were published while the remaining 29 were unpublished. KPMG's contribution to the tax case decisions issued by the SAC was substantial: we served as the representative or managed the process in almost one out of every four decisions. Focusing solely on the published decisions of the SAC, KPMG's involvement was even more pronounced, representing around 31 %, meaning nearly one in three published decisions involved cases where KPMG provided assistance to the taxpayer.
Considering the numerous service providers available for assistance in tax disputes and the fact that taxpayers can navigate the regular appeal process without representation, KPMG's involvement in the resolutions by the Supreme Administrative Court is notable. KPMG's significant share of SAC's decisions highlights our active role in shaping new case law and defending taxpayer rights.
In 2024, KPMG's vast expert network and robust tax dispute expertise were demonstrated through the diverse range of cases we handled, spanning substantive issues across various types of taxes as well as intricate procedural questions.
In 2024, we supported our clients in Supreme Administrative Court cases on various matters, including the deductibility and timing of connexion fees for wind farms, inheritance tax relief for business succession, the tax treatment of trusts, the deduction of losses from group contributions, and value-added tax on parking services. Highlighting the extensive expertise of KPMG's specialists, it's notable to mention the Court of Justice of the European Union's judgement in case C-39/23, which addressed the free movement of capital and the differing tax treatments between domestic public-law pension funds and foreign public-law pension institutions.
Interpretation of Tax Laws and Tax Dispute Processes
Tax laws are often subject to interpretation, making their application in specific cases complex and ambiguous, which can create significant tax risks for economically substantial arrangements. In such interpretative situations, taxpayers should generally seek to determine the correct tax treatment of a legal act in advance, either through a written advance ruling process or, in the case of corporations, via a preliminary discussion with the Tax Administration. If a taxpayer ultimately disagrees with the tax authority's interpretation of the law, they have the opportunity to challenge this interpretation through the appeals process.
A tax dispute can also arise from a tax audit or a disagreement during the regular tax assessment process, such as questions regarding the taxability or deductibility of an item reported on a tax return. Even if the outcome is initially favourable to the taxpayer, the Tax Recipients' Legal Services Unit can initiate an appeal to seek a revision of a positive decision granted by the authorities.
How can KPMG help?
It is recommended to seek expert assistance from the outset when interpreting tax laws. Our specialists in various tax areas can help obtain an advance ruling if necessary. Should disagreements with the authorities arise regarding the correct interpretation of tax law, our experts in tax disputes will professionally defend our clients' rights.
KPMG is a skilled and reliable partner for resolving tax disputes of varying natures and magnitudes. Our experts possess extensive experience in tax dispute processes, efficiently assisting clients while steadfastly defending their interests. A key strength of KPMG lies in our broad, international team of top specialists. When necessary, KPMG experts with specialised knowledge in areas such as valuations, finance, corporate law, and mergers and acquisitions, seamlessly and effectively contribute to the tax dispute resolution process.
