Taxpayers' rights: what is important to know and how to protect your interests?

Taxpayers' rights: what is important to know and how to protect your interests?

Taxpayers in Lithuania are not just individuals who fulfill their obligations—they are full-fledged participants in a legal society. Although tax obligations are an important part of the financial stability of the state, it is equally important for every person or company to understand their rights and know how to defend them. This is particularly relevant when questions arise about the actions, decisions, or their validity of the tax administrator.

The Tax Disputes Commission (hereinafter referred to as the Commission) reminds that every taxpayer has the right to clear, detailed, and understandable information not only about their tax obligations but also about their rights. The Commission also points out that before making decisions related to the taxpayer's situation, they must be given the opportunity to express their position, provide explanations, or other relevant information.

One of the most important rights is to disagree with and challenge the actions and decisions of tax administrators, which begins with the submission of a complaint. Taxpayers may submit complaints not only about the taxes calculated, but also about the reduction or waiver of penalties or late payment interest imposed. The right to apply for exemption from fines and late payment interest may be invoked even after the tax dispute over the calculation of the tax itself has been resolved. This right is not subject to a period of limitation.

If a person disagrees with the actions or decisions of the tax administrator, they may appeal to the Tax Disputes Commission. However, not every action can be appealed to the Commission (more information on this can be found here). If you have any questions about the possibilities for appeal or writing complaints, please contact the Commission, whose staff will help you to participate smoothly in the dispute process.

Rights that are important to individuals during a tax dispute

A taxpayer involved in a tax dispute has a wide range of rights that ensure transparency, procedural fairness, and the opportunity to fully defend their interests.

The right to choose how to defend themselves and participate in the process. Taxpayers have the right to choose how to participate in the tax dispute process – this may be in person, through a representative (family member, lawyer, tax consultant, or attorney), in person, remotely, or not at all, but only to file a complaint. It is important to know that even if you are unable to hire a representative, there is no need to worry – the Commission examines disputes fairly and objectively, taking into account all relevant circumstances. If the complaint is not completely clear or incomplete, the taxpayer is given the opportunity to supplement it – the specific data that is missing is indicated.

Right to request an extension of the deadline for filing a complaint. If the taxpayer has missed the deadline for filing a complaint, they have the right to request an extension of this deadline, justifying the reasons for the delay. Last year, the Commission rejected only one such request. Decisions on the extension of deadlines are published on the Commission's website. The taxpayer also has the right to supplement the complaint or change its scope.

Right to access case materials. The parties to the dispute have the right to access all case materials, either remotely or by visiting the Commission's premises.

Right to submit evidence. The taxpayer may submit all available evidence to support their position.

Right to call experts or witnesses. The parties to the dispute may propose experts or call witnesses to help clarify important circumstances of the case.

Right to receive interpreter services. If the taxpayer needs an interpreter, the Commission will take care of inviting them and paying for their services – at no cost to the person.

Right to request a postponement of the hearing. If there are important reasons, it is possible to request a postponement of the hearing.

The Tax Disputes Commission invites all taxpayers to take an interest in their legal situation, to actively exercise their rights under the law, and, if questions or disputes arise, not to hesitate to contact them. Defending your rights is a completely normal and legitimate action. There is no need to fear that the tax administrator will react negatively or that other people will find out about it – the Commission's hearings are not public, and decisions are published anonymously.

Through their professional work, the members of the Commission seek to strengthen trust between the society and the public sector. Respect for taxpayers and their rights is a long-term investment in the stability of the state, the strengthening of feedback, and the overall awareness of society