Chess

Facing a tax lawsuit? Take these 3 tips so you don't lose in the first minute

dr. Séra Gergely

Partner, Ügyvéd, EY Law Magyarország

A lost tax lawsuit can cause significant reputational damage to a company, not only financially.

We have collected the three most important tips on how to prove yourself right.

1. Learn about cases similar to yours

My first and most important advice is not to get involved in a lawsuit that there is a good chance we won't win. In order to get an idea of ​​the chances, a huge amount of data is available.  

Number of decisions made in tax cases per year
only by the Hungarian courts

We know all the important cases, as we deal with them on a daily basis. We need to know which ones are relevant, and thus it is easy to decide whether it is worth litigating with the tax authorities.

This may be strange advice from a tax litigation firm, but the most important thing is not to litigate for something that is not worth it. 

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2. Choose a strategy

 

Very strict procedural rules apply in a tax lawsuit. These determine when and what kind of new evidence can be introduced, or, for example, whether a new fact or circumstance can be referred to. You have to navigate this environment, which is impossible without a good strategy.

 

If we have assessed the chances with knowledge of the case law, and we also know what relevant evidence and facts we have - we can develop the steps that will help to support our right.

3. Choose a trump card

 

The most common is that you can list up to 10-15 arguments in favor of a company. However, this cannot be brought to court with equal weight.

We have to choose which are the two or three most important arguments on which we will build the case.

dr. Séra Gergely

Partner, Ügyvéd, EY Law Magyarország

Here, too, it is an irreplaceable advantage to know how decision-makers think and what judgments they have made in the past.

Summary

Without a proper strategy, it is almost impossible to win a tax case. However, with adequate preparation, companies' chances can increase significantly - and unnecessary costs can also be avoided.

About this article

dr. Séra Gergely
Partner, Ügyvéd, EY Law Magyarország
Ügyvéd, aki a tárgyalóteremben is otthon van. Sziklamászó a szabadidejében.
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    EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.