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This news item focuses on the changes proposed to the tax procedures in the draft program law. Separate news items cover the income tax and indirect tax (VAT and other taxes) measures.

Currently, the tax authorities can waive the 10% tax increase in the absence of bad faith. Under the draft program law, no tax increase will apply in the case of a first violation made in good faith (amending Art. 444, section 3, BITC). Good faith is presumed but can be rebutted by the tax authorities if bad faith or intention to evade tax is evident. If a second violation occurs within three years of a non-penalized first violation, the tax increase will apply. However, not imposing a tax increase does not change the nature of the violation. The amendment applies to tax increases levied as from 1 July 2025.

While the 4-year statute of limitation period in the case of non- or late filing of the tax return is maintained, the periods of 6 and 10 years for semi-complex and complex tax returns will be reduced to 4 years, eliminating the need fora distinction as all will be called complex tax returns. The period for fraud will be reduced from 10 to 7 years for both income tax and VAT. The previous legal text on notification of indication of fraud will be reinstated. The changes will apply retroactively as from assessment year 2023 (1 January 2023 for VAT).

For taxes within the period of the statute of limitation, the regularization rate is the normally applicable rate increased with 30% points. For taxes outside the period of the statute of limitation, the regularization rate is 45% on the capital. For social contributions within the period of the statute of limitation, an additional levy of 20% of the professional income will be due.

The draft program law contains changes to the CAP law. Most importantly, information on the securities accounts and crypto assets accounts will have to be communicated to the CAP, incl. especially the opening and closing of accounts, the identification of any proxyholders and the balance totals. The changes will enter into force as from 1 December 2026, and the first communication will concern the balances on the dates of 30 June 2025, 31 December 2025 and 30 June 2026.

Access to the CAP will be granted for the purposes of the tax on securities accounts (also as from 1 December 2026).

Finally, a legal framework is introduced for datamining the CAP for the purposes of file selection for tax audit.

If you have any questions on the above measures and how these impact your compliance obligations, do not hesitate to contact your trusted ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø tax advisor.