Suspension of the limitation period due to notification ofthe legal successor about the initiation of proceedings ina case concerning a tax crime or tax off ense

The article discusses the controversies related to Article 70 6 point 1 of the Tax Ordinance Act of August 29,1997, which provides for the suspension of the limitation period for tax liabilities in the event of initiating proceedingsfor a tax crime or tax offense. Referring to the controversies previously discussed in doctrine and case law,concerning the lack of a requirement to notify the taxpayer about the initiation of proceedings and subsequentlythe instrumental use of tax crime proceedings to suspend the limitation period for tax liabilities, the article raisesthe question of the effectiveness of suspending the limitation period due to notifying the taxpayer’s legal successor.The practice of initiating proceedings against the legal successors of the taxpayer after the cessation of itslegal existence or transformation of its legal form applies, for example, to situations where a company, againstwhich tax authorities have initiated a control or tax proceedings, undergoes a division through acquisition. Adoptingthe primacy of the literal interpretation of Article 70 6 point 1 of the Tax Ordinance, it should be consideredthat the suspension of the limitation period due to notification of the legal successor is ineffective. On the otherhand, applying a purposive interpretation allows preventing practices of avoiding tax liability by taxpayers undergoingreorganization.