International requests for information and time limits for tax assessment: what case law says

International requests for information are a common feature of tax proceedings with a cross-border element. The law provides that, for the duration of handling such a request, the time limit for tax assessment is suspended. However, case law refines this approach. The mere submission of a request is not sufficient; what matters is whether the request is genuinely justified.

According to the courts, in order to affect the running of the limitation period, the request must meet three fundamental criteria:

• it must be objectively necessary,
• it must be substantively related to the matter at hand, and
• it must be made in a timely manner.

If these conditions are not met, the request may not suspend the limitation period, and the authority to assess tax may lapse.

In his article for EPRAVO.CZ, Ondřej Málek summarises recent case law and demonstrates how courts assess these situations in practice.

The article is available here.