What cases do we represent?

In the context of representation, we prefer mandates in which the client entrusts us with representation in tax proceedings from the outset; as a standard, from the notification of the commencement of the tax audit (unless we are also charging the client at the same time). This is because tax proceedings are intertwined with various procedural rules, and in the later stages it may be more difficult (and sometimes impossible) to present a certain piece of evidence or engage in a certain line of argument.

Of course, in practice, we often take over cases at some procedural stage. And it is not only in such cases that our advice then also includes comprehensive legal advice in connection with the protection of client assets and the minimization of risks and potential damages.

Representation in tax proceedings requires a combination of legal and tax advice. As a firm that has repeatedly been named Tax Law Firm of the Year, and which is adorned precisely by the effective linking of law and tax under one roof, we are confident that we can add significant value to our clients at various stages of tax or court proceedings.

Prevention of tax audits

The issue of tax audits in Slovakia is a controversial topic in itself. Tax audits can interfere in a very invasive way (often disproportionately) not only with the existence of the company, but also with the existence of the natural persons who are its statutory and/or shareholders.

This is not only with respect to some of the decision-making activity of the decision-making bodies, which cannot reasonably be expected in a state governed by the rule of law, but also with respect to the overall administration associated with keeping track of the related paperwork and costs.

Our ambition in the context of consulting is also to prevent tax audits, for example, by setting up business structures with regard to the expected indicators and reasons for potential interference by the financial administration in relation to the client. Overall, the cooperation with Highgate Group also aims to minimise the likelihood of unwanted tax proceedings being initiated.

Minimising the damage caused by tax procedures

Preventing the materialisation of risks in connection with tax proceedings (especially in connection with tax audits) also includes appropriate and sensible set-up of clients’ businesses. This is because the right structure and relationships within the business can significantly help to increase client comfort even in situations where possible interventions by the tax administration would be more intense and/or invasive.

In this context, client protection must also be kept in mind, as the law does not provide an absolute flexible mandate in structuring a client’s business and asset protection. Certain steps aimed at asset protection (in particular steps in certain procedural phases of tax proceedings) can, in fact, bring not only a legal person but also a natural person into the criminal law arena. Our role as legal and tax advisors is to prevent these risks and to educate our clients about these risks.

What is our experience?

For example, we have the following experience with representation in tax proceedings:

• Representing mainly manufacturing, development and trading companies in VAT audits;
• representation of a tax dispute in connection with the application of VAT deductions for sponsorship;
• representing a tax litigant in connection with proving the status of suppliers and related supplies;
• representation in connection with controls on the “employment” of freelancers (the so-called “shvarc system”);
• representing a tax dispute related to international exchange of information;
• Setting up the structure of clients’ businesses to prevent risks from tax audits and minimize potential damages.