WRITE-OFF OF TAX ARREARS JUSTIFIED BY IMPORTANT ECONOMIC INTERESTS OF THE TAXPAYER
WRITE-OFF OF TAX ARREARS JUSTIFIED BY IMPORTANT ECONOMIC INTERESTS OF THE TAXPAYER

Summary/Abstract: According to Article 67a of the Tax Code, the tax authority may write off a tax arrearage in a situation justified by important interests of the taxpayer or the public interest. Decisions to grant relief from tax liabilities are within the discretion of the tax authority, but cannot be arbitrary. It should be remembered that the public interest is not necessarily the same as the fiscal interest. It is in the public interest for taxpayers to regain financial self-reliance. The institution of remission is an exceptional provision, as it allows tax authorities to remit tax arrears or interest only in exceptional cases justified by important interests of the taxpayer or the public interest. The legislature left it to the tax authorities to assess whether such grounds exist. Therefore, there is no basis for granting relief unless it is supported by "important interests of the taxpayer" or "public interest.".

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