§ Representation in course of tax audits

We have great expertise in all different tax audit (inspection) types, as we are one of those few law firms, where all of our colleagues have worked for many years in different audit fields for the Hungarian tax administration, therefore we are from inside aware of the tax authority’s mentality and intentions. Due to our theoretical and practical experience, we are able to represent you or your company on a high level in course of different tax audits, irrespective whether you got a preliminary (target) audit or a difficult tax audit covering a longer period and more tax types. In case of all tax audits the most important thing is to mandate a professional with your representation as soon as possible, as wasting time, making a bad declaration, or filing an appeal not in time might have such consequences, which can be hardly remedied or cannot be remedied at all in a later stage of the procedure. We perform our work in favor of you and your company, in cooperation with the tax authority, where our aim is to reach equal opportunities, as not only the clients have obligations in course of the procedure, but the tax authority as well.

§ Tax litigation procedures

In many cases we have to go to court and initiate tax litigation procedures to achieve a positive result for our clients. We have much experience in tax litigation procedures, irrespective whether they are going on in front of ordinary administrative courts or the Supreme Court. As the applicable procedural rules have changed, tax litigation procedures (tax trials) have become faster, but the requirements applicable to court files and submitted documents have become stricter, the scope of extraordinary remedies has been narrowed, therefore it is very important to have an attorney at law with much professional experience in these tax litigation procedures. Besides tax litigation procedures, we have much experience in other administrative and civil litigation procedures as well, with special regard to litigation procedures initiated for the establishment of the liability of the company’s shareholder or managing director, which have recently been initiated in an increasing number by the tax authority. Our representation covers the full scope of the procedure, including to apply for all legal remedies.

§ Defense lawyer in economic criminal cases

The scope of expertise of our lawyer team is economic criminal law (tax fraud, embezzlement etc.), with special regard to cross boarder huge volume VAT (carousel) fraud criminal cases. We have experienced in the past very often that simultaneously with indicating a tax inspection by one audit department of the Hungarian tax authority, an inspection is indicated by the customs department of the tax authority as well, although the statement of facts are the same. In such case the actions that can be taken by the authorities are much wider (coercive measures, home search, confiscation etc.) and the procedural rules are much stricter. In many cases the clients are only aware of a simple preliminary (target) audit, although an investigation is going on against them, in course of which the investigators have a wider range to collect information confidentially (i.e. phone interception) or take actions against your company. Hence, the tax audits carried out by the tax auditors of the tax authority provide the opportunity to look into and examine the functioning/operation of your company, and if they collect such proof or data which raise the question of eventual criminal liability, the tax auditor is obliged to make a so called criminal signalization, based on which the tax investigators initiate a criminal procedure. According to the above it is very important to mandate a defense lawyer with your or your company’s representation, who has expertise in tax cases and economic criminal cases as well.

§ Tax advice, tax optimization

A company plans and prepares its business processes, contracts and decisions and tries to eliminate or minimalize the possible risks. Our team can help you and your company with this by providing you tax planning advice maximally taking into consideration the applicable laws and limits, irrespective whether your company is small, mid-size or large, a newly established one or one which has significant taxation experience. In course of tax planning, we always take into account the latest practice of the tax authority, the applicable domestic and EC Court decisions in order to create the most optimal taxation practice for you, or to provide you the best tax advice regarding a single business deal.

§ Participation in certain tax procedures

We provide assistance to our clients with great expertise in certain other tax procedures as well. Many managing directors of companies have to face a suspension from being an executive officer due to recklessness or due to reasons related to an ownership in a formerly owned company established in course of a tax registration procedure following the change of the company’s data (i.e. change of registered seat). The tax authority always has to examine in case of the change of the company’s data whether there are any excluding reasons which affect the member (owner) or the executive officer of the company. Even if such circumstances occur, there is a possibility to file reasons for exculpation. We undertake your full representation in all types of tax procedures, irrespective whether it is a simple registration, an extraordinary appeal, a request for a binding ruling, a procedure for the establishment of a secondary liability or a declaration required in course of another taxpayers audit.

§ Instalment payment (equity procedure), enforcement and liquidation

Many people are aware of the fact that if they cannot pay their tax debt in one lump sum, the tax authority may – under certain circumstances – wave the amount of the tax debt or provide an instalment payment or a defer payment construction. However, did you know, that in certain further cases an instalment payment option is automatically provided? Did you know, that the tax authority has the right – simultaneously with starting a tax audit – to lock/confiscate the amount of the supposed tax debt in course of a so called temporary warrant? In such case, your or your company’s possession (assets) may stay confiscated (blocked) as long as the audit is going on, which means a total economic blocking until you proof your innocence.

We have great experience in filing of instalment payment requests, irrespective whether we talk about tax debt remission, instalment payment or payment postponement. We undertake your representation in course of tax audits, enforcement procedures ordered by the tax authority or by court and in liquidation procedures, irrespective whether you are the debtor who is subject to the procedure or you are the creditor who initiates the procedures.

§ Classic legal services

Based on the contractual freedom, the parties may in a wide range determine relatively free the content of their contracts and agreements and their form. The provisions of civil law prescribe only in certain cases mandatory legal representation (sale and purchase of real properties, company procedures etc.), but we suggest to apply for the services of a professional legal expert in course of drawing the documents in order to avoid future legal disputes. In this case it can be granted, that the certain transaction will have the intended legal effect according to the intention of the parties.

We provide to our clients with great expertise the following legal services in the fields of civil law:

General legal advice in civil law cases

• Interpretation of contracts (i.e. examination of validity, effectiveness, breach of contract, faulty performance etc.)

• sale and purchase agreements, donation agreements
• contracts for work, contracts for services
• contracts for utility and distribution
• examination of liability for damages and losses, enforcement of compensation claim

• Assignment of ownership of real properties (sale and purchase, barter, donation etc.)
• examination of legal situation of real properties (burdens, side notes)
• parcel framing procedures
• legal representation in course of procedures for the clearing of encumbrances on real properties
• Preparation and review of agreements related to the use and utility of real properties (lease, rental or hire etc.)
• legal representation in front of land register and other authorities

In course of the presentation of our taxation services we already indicated that all of our lawyer colleagues have worked for a longer period at the Hungarian Tax and Customs Administration in various audit fields. Hence, one member of our attorney group has also worked in a court bailiff’s office and at the enforcement department of the Hungarian tax authority as well, so due to our practical and theoretical experience we can represent you or your company in the following fields:

Services in the fields of economic law

• general advice, due diligence of companies (if necessary, with the involvement of a cooperating judicial auditor and tax advisor, taking into account all agreements, the company structure and taxation as well)
• representation in course of bankruptcy, liquidation and winding-up procedures
• initiation of a liquidation, winding-up procedure
• issue of warranties for payment, initiation of enforcement procedures
• representation in course of enforcement procedures

• preparation of the deed of foundation (article of association) for each company form
• establishment of companies
• preparation of the deed of foundation of a domestic branch office in case of foreign companies
• preparation of deed of foundation of direct commercial agencies of foreigners
• agreements establishing civil law societies
• agreements establishing a condominium
• organizational and systemic regulations of condominiums

• establishment documentation of foundations
• preparation of deed of foundation of fellowship/societies and their forming minutes
• preparation of statutes of sport associations and their forming minutes
• preparation of statutes of sport leagues/other leagues and their forming minutes