4 August 2014

FiscalReps has successfully mitigated default penalties for 95% of our clients, whereby a penalty of up to HUF 500,000.00 (or EUR 1,700.00) per late filing of the return was reduced to HUF 0.00. We are awaiting confirmation from the tax authorities that the same approach will be taken for the other 5%.

We understand that late payment interest relating to returns “booked” as 2013 will be issued on 5 August 2014. We are awaiting confirmation from the tax authorities as to what is meant by the term “booked” as it is not clear whether this relates to returns that should have been filed in 2013 or the date the 2013 return was filed. The deadline for this payment is 15 November 2014 which falls on the weekend this year and thus the official deadline should be extended to 17 November 2014.

The penalty and interest payments relate to the difficulties and uncertainties that FiscalReps and the market experienced in relation to IPT registration during the first half of 2013. FiscalReps, with the assistance of our local associates, began filing monthly IPT returns from August 2013.