Any of the above conditions will qualify the taxpayer as a risky taxpayer:
- The seat of the company is registered with a registered office service provider and, after 1 January 2017, NAV imposed a procedural penalty in an effective decision, taking effect in the year concerned or in the three preceding years, due to the obstruction of a tax administration procedure.
- In the past one year, the company was included in the published list of taxpayer having a substantial amount of tax shortage or tax debt.
- In the past one year, the company was entered into the published list of taxpayers employing non-registered employees.
- The tax authority repeatedly applied closing of business within one year against the company.
- The company undergoes a forced cancellation procedure.
- The aggregate amount of the tax differences established by NAV to the debit of the taxpayer in the year concerned and the preceding five years exceeds 70 percent of the tax performances established for the taxpayer for the year concerned. (All tax differences established by NAV to the benefit of the taxpayer in the year concerned and in the five preceding years shall be deducted from the tax differences established to the debit of the taxpayer.)
- The aggregate amount of default penalties and excise penalties imposed on the company by HU TA and due in the two tax years preceding the year concerned exceeds 70 percent of the taxpayer's tax performance in the year concerned.
- Group taxpayers will qualify as risky taxpayers if at least one of their members are risky taxpayers.
Consequences of risky taxpayer status:
- The audit deadline is 60 days longer than under general rules,
- The deadline for VAT disbursement is 75 days,
- The late payment fee charged to risky taxpayers in audit procedures is one 365th of 150 percent of the late payment fee calculated under general rules,
- The threshold and cap on tax and default penalties imposed on risky taxpayers is higher than those of general penalties:
- The minimum of the tax and default penalty that may be imposed is 30 percent of the minimum that may be imposed under general rules,
- In the case of fixed amount penalties, the rate of the penalty is 130 percent of the penalty rate otherwise applicable,
- The cap on the default penalty that may be imposed by NAV on the taxpayer is 150 percent of the cap on default penalty, which may be imposed under general rules, and
- The authority may not waive any penalties.