Status and activity of the Commission

The Commission is a pre-trial body examining tax disputes.

Tax Dispute Commission under the Government of the Republic of Lithuania is a public legal entity – a budgetary institution established and approved by the Government of the Republic of Lithuania.

The purpose of the Commission is to examine the taxpayer’s complaint objectively and to reach a lawful and reasoned decision.

Composition of the Commission: the Commission consists of the chairman and four members.

Procedure for appointing members of the Commission.

The members of the Commission are appointed for four years. A person of impeccable repute with a qualification Master's degree in finance, law or economics or equivalent higher education degree and at least three years of work experience in tax, customs or company law may be appointed a member of the Commission. Candidates to the members of the Commission are selected by a commission formed by the Minister of Finance of the Republic of Lithuania and the Minister of Justice of the Republic of Lithuania, taking into account the established requirements for the candidates and the results of the interview with the candidates, during which the commission formed by the Minister of Finance and the Minister of Justice assess knowledge and skills of the candidate necessary to perform the function of a member of the Commission. The selection of candidates is organized by the Ministry of Finance of the Republic of Lithuania.

The same person may be appointed as a member of the Commission for not more than two consecutive terms. The members of the Commission must be citizens of the Republic of Lithuania. The members of the Commission are appointed by the Government of the Republic of Lithuania on the proposal of the Prime Minister. The chairman of the Commission is appointed by the Government of the Republic of Lithuania from among all members of the Commission on the proposal of the Prime Minister.

The Commission examines:

• tax disputes arising between the taxpayer and the central tax administrator;
• tax disputes between the taxpayer and the central tax administrator regarding decisions of the central tax administrator made after examining taxpayers’ appeals against decisions of the local tax administrator
• tax disputes between the taxpayer and the central tax administrator, when the central tax administrator has not made a decision on a tax dispute within the time limits established by the Law on Tax Administration.

Tax disputes are disputes arising between the taxpayer and the tax administrator regarding the approval of a decision on an inspection report or another similar decision, according to which the tax is recalculated to the taxpayer and the taxpayer is ordered to pay it, as well as the tax administrator’s decision to refuse to refund (set off) the overpayment (difference).

Applying to the Court of Justice of the European Union

The Commission is a recognized judicial authority under the CJEU decision of 21/10/2010 in case Nidera No. C-385/09. The Commission is recognized as a court or tribunal under Article 267 of the Treaty on the Functioning of the European Union, also recognizing its right to seek a prejudicial decision from the CJEU.

The Commission applied to the CJEU 5 times (31 March 2021).

Requirements for an appeal

An appeal regarding a tax dispute must be submitted to the Commission in writing no later than within 20 days from the service of the appealed decision by the central tax administrator on the taxpayer or within 20 days from the expiry of the term for making a decision on the tax dispute. The appeal shall be lodged with the Commission through the central tax administrator.

The appeal lodged with the Commission must meet the following requirements:

• the appeal must indicate the name (name, surname) of the taxpayer, identification number (code), address, the appealed decision, the date of its issue, circumstances upon which the appellant substantiates its claim and supporting evident, claim of the appellant;
• the appeal must be written by a taxpayer (its representative) Article 153 of the Law on Tax Administration

The taxpayer and the tax administrator have the right to get acquainted with the case material in the Commission (Article 152(2), Article 151(1),(2) of the Law on Tax Administration).

The Commission shall take a decision on a tax dispute within 60 days of receipt of the complaint.

The taxpayer who does not agree with the Commission’s decision has the right to appeal the decision to court. Appeals against the Commission’s decision are heard in Vilnius Regional Administrative Court and then in the Supreme Administrative Court of Lithuania (final instance in tax cases).

Central tax administrator has the right to appeal the decision of Tax Dispute Commission in the case where central tax administrator and Tax Dispute Commission, upon examining a tax dispute (or at the time of tax dispute) interpreted the provisions of law of other legislation differently.

Upon execution of its functions, the Commission have the right:

• to receive information from state and municipal institutions and other persons related to the taxpayer's appeal under consideration;
• to use experts and other specialists who have appropriate training and can provide conclusions on the disputed issue;
• to submit proposals to the Government of the Republic of Lithuania regarding the improvement of tax laws and other legislation.