B Law & Tax
21 April 2023

Tax advisor: Is it possible for the management body to use the direct estimation even if it is not appropriate for calculating the Personal Income taxable base?

Article 136.2.c) of the General Tax Law allows the management bodies to examine records, documents and any other official book or document, excluding commercial accounting. The examination of these accounts is not permitted, but the documents supporting the transactions recorded or declared by the taxpayer may be examined. The review of commercial accounting within the the limited verification is used to cross-check the information contained in the declaration-settlement with the data in the documents and records, without extending beyond this subject.

In this case, according to the Supreme Court Order, of March 8th, 2023, the question is to determine whether the management bodies can use the direct assessment to set the tax base of a tax in a limited verification procedure in which the inapplicability of the objective assessment method is detected. The question is whether the management bodies can use the direct assessment and issue the resulting liquidation in this procedure or whether they can only do so in a tax inspection procedure.

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