Reasonable timeframe

Entitlement to immaterial damages when 'reasonable timeframe' for tax matters exceeded

The Supreme Court decided some time ago that the tax authorities and courts must act diligently and therefore make judgments with regards to tax mattes within a reasonable timeframe. If they do not do this, there is usually an entitlement to compensation for immaterial damages. The compensation amounts €500 per half year the judgment is made too late.

The processing of an objection and an appeal together may take up to a maximum of two years. When this two-year period is exceeded, then the objection and appeal phases will be looked at separately. Specifics aside, a reasonable period for objection has a maximum of six months. For an appeal this maximum period is up to 1.5 years. For higher appeals and appeals in cassation the maximum period is two years.