Default penalty
In the case of non-compliance with certain tax obligations, such as registration or change notification obligations, the tax authority may impose a default penalty of up to HUF 400,000 on private individual taxpayers and up to HUF 1 million on other taxpayers.
A taxpayer may be exempted from the penalty if the relevant obligation is fulfilled and the taxpayer proves that it acted as could generally be expected under the given circumstances.
Non-compliance includes:
- incorrect or incomplete fulfilment of an obligation;
- reporting false information;
- late fulfilment; or
- failure to comply with an obligation.
In certain cases, special rules may provide for a different amount of default penalty.
Self-revision
Self-revision allows taxpayers to correct an incorrect tax return before the tax authority starts an audit of the relevant tax and period.
A tax return may be corrected if the taxpayer discovers that the tax base, tax or budget subsidy was determined incorrectly, or that the return contains a calculation or clerical error.
A lawful choice made by the taxpayer generally cannot be changed through self-revision. However, a tax allowance may be claimed subsequently by filing a self-revision. Once a tax audit has started, the tax or budget subsidy covered by the audit can no longer be corrected in this way.
The taxpayer must file the prescribed self-revision form showing the corrected tax base, tax or budget subsidy. A self-revision fee is payable separately for each tax type or budget subsidy if the correction results in an additional payment obligation.
By filing the correction and paying the additional tax, repaying any unduly claimed budget subsidy and paying the self-revision fee, the taxpayer may avoid the tax penalty, default penalty and late payment surcharge associated with the corrected tax liability.
