Amendments to Tax Returns for Periods Before 2024 Are Being Unfairly Penalized
One of the fundamental principles of justice is the prohibition of the retroactive application of laws. This principle ensures that no law may be applied to penalize actions that occurred before its entry into force. The Constitution of Kosovo protects this principle, ensuring that individuals and businesses are not penalized under retroactive legislation. In this context, the imposition of fines by the Kosovo Tax Administration (TAK) for tax periods preceding the entry into force of the new law in January 2024 constitutes a serious violation of this principle.
Law No. 08/L-029 on Tax Administration and Procedures, through Article 99, paragraph 1.2, provides for penalties for late submission of tax returns. The main concern is that this law is being applied to periods preceding its entry into force, raising significant legal and constitutional concerns. For example, if you amend a tax return for 2023 today, the system will automatically impose a fine of EUR 150 for each amended return.
Another fundamental issue is the short period of only 15 days provided by the legislator before the law entered into force. For legislation of this nature, such a period is highly insufficient. A reasonable period for a law of this kind should have been at least six months to ensure that businesses and accountants had sufficient time to comply with their obligations.
The imposition of fines for periods that were not subject to the new law not only creates legal uncertainty but also places an unnecessary financial burden on businesses and the accountants representing them. This practice is not only unfair but also establishes a dangerous precedent in the application of the law and infringes upon the constitutional rights of taxpayers.
Unfair decisions imposing penalties for periods preceding the entry into force of the law are not only unacceptable but also violate fundamental taxpayer rights. This is not merely an administrative matter but a challenge to justice and equality for all those adversely affected by this application of the law. Such decisions must be challenged, and our rights must be defended before the courts.
In our next article, we will address tax refunds from the perspective of the new law.
