Did you know that the Tax Reliability Index is based on scoring taxpayers?

Following the initial sending of notifications about the determination of the Tax Reliability Index, the classification of the taxpayer is reassessed every six months, with new notifications being sent to the taxpayers only if the index changes. The Tax Reliability Index is assessed only for taxpayers registered for income tax, classifying them into one of three 'reliability categories': highly reliable, reliable, or less reliable.

Taxpayers are classified based on the number of points achieved (in this case, however, points are awarded for non-compliance) and also based on whether they meet the conditions of the economic indicator (taking into account the effective tax rate and its marginal level). Taxpayers scoring up to and including 10 points that also meet the economic condition are assessed as highly reliable. As the number of points increases, the rating of the taxpayer subsequently deteriorates, with the least attractive classification pertaining to a taxpayer that earned more than 25 points.

"Negative" points are awarded within several categories of obligations, e.g.:

• failure to submit income tax returns / VAT returns / VAT ledger statements / EU sales lists / other documents by the deadline,
• failure to state the correct amount of tax in the tax return - assessed based on final decisions issued in the tax audit (the number of points allocated depends on the amount of additionally levied tax),
• payment of tax, customs duty, and other monetary payments after the statutory deadline (the number of points allocated depends on the amount due),
• failure to comply with the obligations to allow a tax audit to be performed and to prove the facts necessary for the correct assessment of the tax, resulting in the assessment of the tax by the Tax Authorities based on available information,
• failure to comply with obligations in relation to the use of the Electronic Cash Register,
• non-compliance with the obligations of accounting units - breach of the Act on Accounting,
• breach of obligations and levied fines in relation to excise taxes,
• hindering the tax audit on the eligibility for a refund of an excessive VAT deduction, resulting in the termination of the claim.

The assessment period is 3 or 5 years, depending on the category of the non-compliance. The full list of criteria as well as the scoring methodology can be found here (Slovak only).

In the event of discrepancies or doubts about the assessment, the taxpayer may file an appeal against the notification within 15 days upon its receipt. The appeal must be substantiated, and its filing has a suspensive effect.