Filing an objection with the Tax and Customs Administration: here is how you do it

Objection to the Tax and Customs Administration: deadlines, procedure, and pitfalls

An assessment, decision, or ruling on an objection by the Tax and Customs Administration often feels final, but usually it is not. The National Tax and Customs Administration Act provide a structured legal process in which an incorrect decision can be challenged. Crucially, the time limits are strict: one day late and the path to the court is cut off. This contribution outlines the basic steps, the most common mistakes, and the strategic considerations.

The six-week objection period: strict and non-negotiable

An objection may be lodged against an assessment or a decision subject to objection within six weeks of the date of issue, pursuant to Article 6:7 read in conjunction with Article 22j of the General Tax Act (AWR). This period commences on the day following the date of the decision and ends on the forty-sixth day. An objection received one day late shall, in principle, be declared inadmissible. Only in very exceptional cases may exceeding the time limit be deemed excusable, for example in the event of serious illness or circumstances not attributable to the taxpayer.

The objection period also continues to run during holidays, illness of the bookkeeper, a move, or the non-receipt of mail due to an incorrect address in the BRP. Anyone who suspects risks would be well advised to file a pro forma objection in a timely manner, whereby it is merely announced that an objection is being made and the grounds are supplemented later. The inspector usually grants a reasonable additional period for this.

What is included in a good letter of objection

An effective notice of objection contains the name and address of the submitter, the date of the contested decision, the assessment or decision number, the grounds for the objection, and a signature. In the case of a power of attorney, the authorized representative must submit a signed authorization. The grounds must be concrete and substantiated: a statement that the assessment is too high is insufficient. Refer to articles of law, case law, or factual inaccuracies in the assessment.

The request to be heard must be explicitly recorded. The hearing offers the opportunity to explain the case once again and clear up any misunderstandings before the inspector issues a ruling. If a request for a hearing is made and the inspector does not respond to it, this constitutes a formal defect on appeal that may lead to referral back.

Evidentiary position and strategic considerations

The burden of proof varies by subject. In the case of an income tax assessment regarding turnover, the burden of proof rests in principle on the inspector, unless there is a reversal and increase of the burden of proof due to failure to comply with administrative obligations or failure to file the required return (Article 25 paragraph 3 and Article 27e of the General Tax Act). For deductions, the burden of proof lies with the taxpayer. Ensure that you submit supporting documents during the objection phase; on appeal, strict adherence is sometimes applied to what has already been submitted.

Strategically, it is important not to reveal all your trump cards to the inspector prematurely. A good objection procedure allows room for introducing additional arguments on appeal without them being disregarded as new claims. In cases involving significant interests, a dual approach is advisable: an objection on all grounds, with a strongly substantiated main point and subsidiary claims in case the main point fails.

Appeal, higher appeal and cassation

An appeal against the decision on the objection may be lodged with the District Court within six weeks of the dispatch of the decision. An appeal against the District Court's decision may be lodged with the Court of Appeal, and an appeal in cassation against the Court of Appeal's judgment with the Supreme Court. In cassation proceedings, in principle, only legal complaints are addressed; new factual arguments are not assessed. Anyone wishing to have a successful appeal in cassation must therefore prepare for this procedure starting from the objection stage.

Follow-up action

Have you received an assessment or decision that you believe to be incorrect, or are you facing an approaching deadline? Our tax law practice will review the case and assist with the timely and substantiated filing of an objection or appeal. Do not wait until just before the deadline: a well-substantiated notice of objection requires preparation time. Contact us immediately.