Objection to Inheritance Tax Assessment

Objection to a Transfer Duty Assessment

How and Within What Timeframe May a Taxpayer File an Objection?

• The objection must be filed within two (2) months from the date on which the taxpayer is notified of the collection order for the duty due, or from the date on which the duty is paid before notification. Otherwise, the objection may be rejected on procedural grounds.
• The objection must be submitted to the tax administration by means of a written petition stating the grounds for objection and accompanied by copies of the supporting documents.
• Other taxpayers benefit from the objection even if they have not filed individual objections themselves.
• The competent tax administration may issue a decision that reverses, partially confirms, or fully confirms the contested decision, and the administration must notify the objector of the outcome in all cases.
• If the competent administration accepts the objection and considers it justified, it shall correct the assessment after obtaining the approval of the Revenue Director.
• The objector may appeal a tax administration decision rejecting the objection in whole or in part before the Objections Committees within two months from the date of notification of the tax administration's decision following its review of the objection.

Decision of the Objections Committee

The Objections Committee reviews the file, and the committee rapporteur notifies the committee's decision to:

• The competent financial department through the administrative procedure.
• The objector within thirty days from the date of issuance of the decision, subject to the notification requirements of Articles 27 and 28 of Law No. 44 dated 11 November 2008 (Tax Procedures Law).

The taxpayer may not raise before the committee claims other than those included in the original objection. The committee may not examine issues that were not raised by the taxpayer, nor may it rule on amounts exceeding those contested. Any concealed revenues must be referred to the competent tax administration for assessment.

Can the Decision of the Objections Committee Be Appealed?

• Both the taxpayer and the financial department may appeal the decision of the Objections Committee before the State Council within one month from the date of notification.
• The appeal must be submitted directly to the State Council.
• Admissibility of the appeal is conditional upon the appellant depositing security equal to five percent (5%) of the contested amounts of duty and penalties, excluding the late-payment penalty.
• The security deposit must be paid together with the court fees into the designated fund of the State Council within the appeal deadline. Any appeal not accompanied by a receipt proving payment of the security deposit shall be rejected.

How Is the State Council Decision Applied?

• If the appeal is rejected, the security deposit is forfeited to the State Treasury. If the State Council rules in favor of the taxpayer, a portion of the security deposit proportionate to the approved claims is refunded, provided no tax remains due. Otherwise, it is applied toward payment of the tax due.
• Where the objection is accepted in whole or in part by the tax administration, the administrative courts, the Objections Committees, or the State Council, a taxpayer who has already paid the assessed amounts is entitled to recover any excess amount paid together with the statutory interest due on that balance.
• The late-payment penalty provided for in Article 55 of the law continues to accrue throughout the objection period, provided that this period does not exceed 12 months from the date on which the objection was filed within the legal deadline before the tax administration.
• If the final decision is issued in favor of the tax administration by rejecting the objection on procedural grounds, the collection penalty is recalculated from the beginning of the period during which its accrual had been suspended.
• If the objection is accepted procedurally but rejected or amended on the merits, the collection penalty applies from the date of issuance of the final decision.