Will the "right to make a mistake" soon go into effect?

Since the adoption of the 2024 Budget Act in the fall of 2023, any taxpayer who encounters an error by the tax authorities regarding the tax base or the calculation of taxes is now automatically entitled to interest on late payments. 

Previously, regulations required filing a lawsuit to obtain a refund and receive this interest.

The 2024 Budget Act, passed by Parliament in the fall of 2023, introduced measures aimed at ensuring that all taxpayers are treated equally by the tax authorities. Some of these measures have significantly simplified the compensation process for those affected by tax errors, according to a report by Capital on Tuesday, January 23, 2024.

In the event of an error by the tax authorities regarding “the determination of the tax base or the calculation of taxes,” the affected taxpayers are now entitled to interest on arrears. In accordance with the General Tax Code, the rate of this interest is set at 0.2% per month of the amount refunded due to the error, and it applies “from the date of payment” of the tax, according to the Ministry of Economy and Finance.

The procedure that was previously required has been eliminated. Before the 2024 budget law was enacted, the payment of this interest was subject to certain conditions. 

Taxpayers had to initiate legal proceedings to claim a refund of the amount erroneously collected and to receive the corresponding interest. This process involved filing a claim with the tax authorities or appealing to the Administrative Court, as stipulated by the General Tax Code.

From now on, if the tax authority “grants a tax refund” to correct an error related to the tax base or the calculation of taxes, the automatic payment of late-payment interest is provided for the taxpayer in question. This change is intended, in particular, to protect individuals who may not be aware of the various remedies available to them.