Latest developments from the Council of State on the tax reassessment procedure

Latest developments from the Council of State on the tax reassessment procedure

When the tax authorities intend to reassess a taxpayer, they generally have until December 31 of the third year following the year for which the tax is due to do so.

The reassessed taxpayer, in turn, has the same time limit to file a claim challenging the reassessment made by the tax authorities, starting from the date of receipt of the reassessment notice.

However, when the tax administration legally benefits from an extended reassessment period — for example, ten years in the case of a reassessment concerning a hidden or undeclared activity — the taxpayer automatically benefits from the same extended time limit to submit a claim, even if the administration does not make use of that extended period.

This principle was recently confirmed by the Council of State in its decision of July 22, 2022 (No. 451206).