Ústavní soud k úroku z nesprávně vyměřeného cla

Constitutional Court on Interest from Incorrectly Assessed Customs Duty

The Constitutional Court ("CC") recently issued a ruling on a case involving a rejected claim for interest on incorrectly assessed and subsequently refunded customs duty.

Generally, according to the Tax Code, taxpayers are entitled to interest on incorrectly assessed tax for the period during which the tax was incorrectly assessed. Customs regulations do not contain a similar rule and exclude the application of interest according to the Tax Code. They explicitly state that the right to interest arises only if the customs duty was not refunded within three months of the decision to refund it.

The above-mentioned exception was referenced by both the Regional Court and the Supreme Administrative Court ("SAC"), where the complainant sought the interest according to the Tax Code. Both courts concluded that if the taxpayer indeed suffered any damage, they should seek compensation through civil proceedings for damages.

The CC did not agree with such reasoning in its ruling. It referred to a ruling of the Court of Justice of the EU. At the same time, it criticized the previous courts for not considering the disproportionate complexity in the case of seeking compensation through civil proceedings. The CC also explained how such proceedings are difficult for taxpayers.

The SAC will now decide on the matter again. However, we recommend not delaying filing for similar claims against customs authorities. We are happy to assist you in this regard.

This ruling may also be an indication of how the CC might approach other cases where administrative courts refer taxpayers to seek compensation for damages caused by tax authorities.

If you have any related questions, please contact the authors of the article or the EY tax team you are collaborating with.

Authors:

David Kužela

Jiří Dienstbier