A wave of notices is about to be sent out by the ADEA, focusing on pending audit cases that risk becoming time-barred, with the risk of losing significant tax revenue.

There are just 15 days left to notify auditees of the “bills” to avoid copying, with auditors speeding up procedures, especially for cases that expire on December 31, 2024.

Particular emphasis is placed on cases of heightened tax interest, such as bank account analyses, delinquency history, and tax year 2018 cases, which are the primary focus of audits.

The final date for notification of provisional tax correction acts is set for December 1, 2024, due to the time-consuming procedures required before a final act is issued.

The procedure is as follows:

1. Notification of Deed: The taxpayer has 20 days to respond and provide evidence to support or correct the findings.
2. Assessment by the AADE: The tax authority has 10 days to review the responses and issue the final act.
3. Final Notification: The process must be completed by December 31, 2024.

The existing legal framework, reinforced by decisions of the CoE (616/2020 and 618/2020), obliges the ADEA to complete the procedure within the deadlines, as the limitation period is not interrupted if the act is not notified in time.

The cases that are subject to the limitation period are the following:

– Year 2018: income and VAT returns, due or overdue until 31 December 2023 (5-year limitation period)
– Year 2016: Declarations filed late in 2022.
– Year 2013: Cases with additional information or unsubmitted VAT returns.
– Year 2008: Income tax returns not filed or filed late (15-year limitation period).

ADEA may extend the possibility of control in the following cases:

– New data: one-year extension if new returns are filed or new data arise within the 5-year period.
– International cooperation: extension until receipt of data from abroad and for one year thereafter.
– Judicial proceedings: One year after a decision on an appeal or judicial review.
– Mutual Settlement Procedure (MSP): Extension until completion of the procedure and for one year thereafter.
– Complaint Investigations: Extension for complaints involving collusion between a taxpayer and an employee of the IRS.

As the year winds down, the tax administration is intensifying efforts to ensure the collection of significant revenue and avoid losing critical tax cases.