Interest rate on overpayment following a revised decision of the authorities

If the authority of first instance issues a decision determining the amount of tax liability and incorrectly states that the limitation period has not expired, it should take into account the need to pay interest on the overpayment – from the date of the overpayment, i.e. from the date of payment of such tax.

The Supreme Administrative Court today considered the case regarding interest rate on overpayment in real estate tax (file reference number II FSK 3975/17), in which Kamil Szczęsny, a specialist in the GWW real estate tax team, was an attorney. The Supreme Administrative Court agreed with arguments of the applicant company and its attorney to a large extent.

– The judgment is very favorable for taxpayers. When issuing a decision after the expiry of the limitation period, the tax authorities should carefully assess premises resulting in suspension or interruption of the limitation period, as in the event of later revocation of the decision and discontinuation of proceedings they will be required to pay interest on the overpayment from the date of the overpayment, i.e. from making payment of the tax resulting from the tax assessment decision – commented Kamil Szczęsny.

More on this subject can be found in an article on prawo.pl: https://www.prawo.pl/podatki/oprocentowanie-nadplaty-liczone-od-momentu-jej-powstania-wyrok,496360.html