Tax audits, appeals and the limitation period on public liabilities

The tax and social security procedural code governs how the Revenue Agency conducts checks and audits, how its acts are appealed, and when public liabilities become time-barred. Unlike the substantive tax statutes, it does not say how much tax you owe — it says how that is established and collected.

A check versus an audit

A check is a narrower procedure for establishing facts, and does not necessarily end in an assessment. An audit is a full procedure that ends in an assessment establishing specific liabilities — principal, interest, and in the case of offences sometimes administrative penalties as well.

The key deadlines

The assessment is appealed administratively to the director of the appeals directorate, and thereafter — if rejected or only partly upheld — through the courts.

Limitation on public liabilities

The general limitation period for public receivables (taxes, contributions) is 5 years, running from 1 January of the year following the one in which the liability fell due. There is also an absolute 10-year limitation period, which applies regardless of any suspension or interruption — once it expires, the liability is extinguished for good.

What interrupts or suspends limitation

• The issue of an act establishing the liability.
• The taking of enforcement action.
• An appeal against the assessment — limitation is suspended for the duration of the proceedings.

Conclusion

Knowing the procedural deadlines is often the difference between a successful appeal and a lost opportunity — the 14-day window is short and brooks no delay.

How to prepare for an audit

• Have complete, well-ordered primary documentation for the period under audit — invoices, contracts, bank statements.
• Respond to requests for documents on time and in writing.
• Do not sign records whose content you disagree with, without registering an objection.
• Observe the 14-day appeal deadline — it runs from service and is not extended.

Frequently asked questions