What Can Be Done When a Tax Penalty Is Issued?

Receiving a tax and penalty notice following a tax audit is a situation companies frequently face. Such a notice does not mean that the amount must simply be paid as it stands.

The taxpayer has several options. Settlement with the tax administration may be sought, penalties may be paid at a reduced rate in certain cases, and where the notice is considered unlawful, recourse to the courts is also available.

When choosing any of these routes, care should be taken not to lose the right to file a lawsuit. For this reason, rather than acting in haste once the notice is served, the taxpayer should first assess which route is most suitable.