According to the draft amendments to the Tax Ordinance Act (currently the draft is at the stage of inter-ministerial consultations), evidence exclusion, known, inter alia, from civil proceedings are to be introduced to tax proceedings. In other words, it means that the taxpayer will have to submit all arguments justifying his position before the end of the tax proceedings and will not be able to rely on additional, previously not submitted evidence at a later stage.

The proposed amendment is to add a provision specifying the obligation of a party to the proceedings to refer to all facts and evidence in their possession at the stage of tax inspection or customs and tax inspection without undue delay, not later than by the end of the inspection. According to the authors of the draft, this is to enable the shortening of tax procedures and prevent delaying processes by submitting evidence motions after the deadline.

If the changes come into force, it means a complete change of the rules in the taxpayer-tax office relationship and a significant weakening of the taxpayer’s position during the audit. It is noteworthy that the taxpayer during the audit is not always sure which transactions and for what reasons raise doubts of the inspectors. Limiting the right to invoke new facts only until the end of the duration of the inspection significantly complicates the procedural situation of the taxpayer and deprives him of full rights of defense at the stage of submitting an appeal to the second instance authority. For these reasons, even more important than before may be the use of a professional representative already at the initial stage of verification of the settlement by the tax office.