Discover the possibilities of obtaining compensation for damages incurred during the appeal of Audit Acts, particularly regarding attorney’s fees. This comprehensive guide outlines the process for companies and individuals to protect their rights and seek reimbursement.
The Two-Stage Appeal Process:
The Audit Acts undergo a two-stage appeal process. The first is the so-called administrative appeal. It stipulates that the issued Audit Act must first be appealed to the competent administrative authority. Only after this method has been exhausted, the law allows for an appeal in court.
The Role of Specialized Legal Services:
Insofar as the Audit Acts concern a specific matter requiring specialized knowledge, a successful appeal in most cases requires the use of specialized legal services. Therefore, audited persons hire a tax advisor/lawyer, paying the appropriate attorney’s fees for both administrative appeals and judicial appeals.
Recovering Attorney’s Fees: Possibilities and Limitations:
Uncover whether it is feasible for individuals to recover attorney’s fees paid during the appeal of Revision Acts, both administratively and judicially. Understand the court’s authority to award attorney’s fees in the case of a successful judicial appeal, while recognizing the absence of a legal provision for administrative appeal reimbursement.
In the case of a successful appeal, the Audit Act is revoked by the administrative body or the court.
The question that arises is whether individuals have the possibility to recover the attorney’s fees they incurred during the appeal proceedings of the Audit Acts, both in terms of administrative and judicial appeals.
In the case of a successful judicial appeal of the Audit Acts, the attorney’s fees paid are awarded by the court with the court resolution itself.
However, the law does not provide for the possibility of awarding the paid attorney’s fees in the first phase of appeal – the administrative appeal.
How to recover the attorney’s fees paid in the administrative proceedings in the event of a revoked Audit Act?
The Liability of the State and Municipalities for Damages Act (LSMDA) provides for the conduct of a separate claim proceeding, within which the person who has paid the attorney’s fee brings a claim against the administrative body that issued the revoked Audit Act, i.e. the National Revenue Agency (NRA).
What are the prerequisites for a successful claim?
The composition of the claims includes as a cumulative fact: 1. existence of an issued audit act; 2. illegality of the act; 3. damage and its amount; 4. The cause-and-effect relationship between the unlawful act and the damages suffered.
It is very mandatory to present evidence for the payment of attorney’s fee precisely for the appeal of the Audit act. Such evidence would be, for example, a written agreement, invoice and payment slip, in which the number of the specific act, which was appealed, is indicated.
Compensation for Delay
It is permissible to claim interests for delay of reimbursement of the damages suffered. The starting date from which it is permissible to claim is the date of entry into force of the act that repeals the audit act.