A new tax law will allow Hungarian tax authority APEH to suspend a company’s tax registration number if it does not submit a balance report by the required date, reports napi.hu. Previously, the Court of Registry was responsible for taking this action.
Following the previous year’s statutory provision changes, the Court of Registry no longer has to process submitted balance reports, which will now be taken care of by the Company Information Service. The Court of Registry will only step in if the Company Information Service commences judicial review proceedings. Consequently, as of next year, APEH will be sending out notices to defaulters to submit their reports.
In the even of an eight day delay, the defaulter will have fifteen days to sort their account. If the company fails to accomplish this in the fifteen days, their tax registration number will be suspended by APEH for sixty days. If even this proves ineffective, APEH will inform the Court of Registry, who will initiate measures to delete the firm’s registration.
The new procedures will not cause any problems for the tax authority, Péter Polgár, its vice president said. Estimates are that about fifty to sixty thousand companies do no meet their balance report obligations. While some of these companies are inactive or no longer exist, others simply avoid paying fees. What remains to be determined is whether these companies are one-time offenders or if they regularly are.