Tax audit of binding rulings From July 1, 2016, a new type of tax audit was introduced whereas binding rulings may be fact-checked by the tax authority. The tax authority may start this type of audit regarding a taxpayer’s past tax years to find out whether the facts and circumstances of the transactions covered by a binding ruling resolution are actually in line with the facts as they are set out in the resolution.
During the audit, the tax authority may only request documents which are specifically mentioned in the ruling resolution as the precondition of the fulfilment of facts and circumstances serving as a basis of the resolution. Following the audit, the tax authority issues a resolution confirming whether the respective binding ruling resolution is actually binding on the tax authority in respect of the reviewed tax year(s) based on the facts confirmed.
