The taxpayer is a natural person, a 70-year-old retiree, previously self-employed as an inspector of electrical equipment. For health reasons, the taxpayer failed to fulfil his tax obligations in the years 1996–1999.
As part of an initiated tax inspection, the tax authority proceeded in accordance with the provisions of Act No. 337/1992 on the Administration of Taxes and Fees, and set out the level of tax in accordance with tax aids. The additional assessments were paid by the taxpayer in 2010, but in 2011 the tax administrator calculated a penalty from the additional tax assessment that was a similar in amount to the original additional assessment.
In light of the unaffordable tax obligations and an unfavourable economic and social situation, the taxpayer requested that the penalty and interest on late payment be waived. The request was denied because of the effectiveness of the transitional provisions of the Tax Code, which did not allow such requests to be granted. And so the appeal of the taxpayer was rejected. The tax authority ordered tax execution by the sale of the property which the taxpayer used as his permanent place of residence.
From the file of the taxpayer, it was ascertained that no action was initiated on the party of the tax authority to suspend or extend the course of the 6-year limitation period for the payment of tax. According to the Tax Code, the right of the tax authority to enforce collection of the unpaid tax had expired. This fact was confirmed in discussions with the tax authority, the time-barred penalty was cancelled and the tax execution was abandoned.