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Survey on legal remedies in tax controversies

Tax litigation – unexploited opportunities

Deloitte Hungary conducted a survey among Hungarian medium and large companies regarding legal remedy proceedings launched in tax issues to obtain a clear view of Hungarian legal practice and potential unexploited opportunities.

Today, Hungarian courts hearing public administration cases and the European Court of Justice both play an increasingly important role in establishing legal practice in the field of tax controversies. The appropriate mapping of potential legal remedies is ever more important if taxpayers want to take an effective stand against authority resolutions in contested matters.

Key results

  • Even though taxpayers often disagree with the tax authority’s positions, nearly half of all companies only file an appeal when the amount contested is high.
  • Nearly 40% of those surveyed are still averse to taking legal action in tax issues than in the case of other matters.
  • Compared to the previous years, the percentage of those respondents that have filed a request for a supervisory procedure at least once has declined, despite the fact that the majority of those who used this form of legal remedy were mostly satisfied with the proceedings.
  • Nearly three quarters of respondents that have already initiated court proceedings are of the opinion that courts have little experience in evaluating tax matters.
  • 71% of the respondents know the fundamental regulations but are unaware of the detailed rules, although this would be essential for taking an effective stand against tax authority resolutions.
  • The provisions of EU law apply to tax issues; however, only 50% of the respondents possess detailed information in spite of the fact that, in recent years, Hungarian taxpayers have won numerous important tax lawsuits before the European Court of Justice.
Survey on legal remedies in tax controversies: Tax litigation – unexploited opportunities

"Deloitte Legal" means the legal practices of Deloitte Touche Tohmatsu Limited member firm affiliates that provide legal services. For legal and regulatory reasons, not all member firms provide legal services.

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