In a recent court decision the Tax Court ruled on determining the statute of limitations for the tax authority to impose penalties. Article 638 of the Tax Code presents the statute of limitations for imposing penalties as a result of tax filing discrepancies. The penalties may be imposed by the National Tax Authority either through an official reassessment decision or an official independent decision. The statute of limitations for issuing such official decisions is 2 years.
In the Tax Court´s opinion, the starting point of the statute of limitations, as provided by Article 638 of the Tax Court, depends on whether the offense is linked to a specific tax year. If the offense is linked to a specific tax year, the statute of limitations starts on the filing date of the tax return corresponding to the relevant tax year. If the offense is not linked to a specific tax year, the statute of limitations starts on the filing date of the tax return of the year when the offense occurred.
