Let them read it in time
26.04.2011Company: Amcham
We are accustomed to the idea that returns are brought to the post office on the evening of the deadline date. What matters is the stamp on the envelope. This also applies to other tax declarations and data messages. In the new tax code, however, we could find, surprisingly, an exemption.
An exemption which doesn’t look important. Until it’s too late. Powers of attorney.
If you empower a tax advisor to prepare and file your tax return, the deadline for filing the return is extended by three months. But for this power of attorney to be effective, it must be applied with the tax administrator no later than on the last day of the previous period. By the word “applied” the authors of the law mean the moment when the tax administrator can familiarise themselves with the power of attorney. This looks like a wordplay but it unambiguously means that a power of attorney must be lying on the tax administrator’s desk at the moment of the end of the period. It’s not enough to send it on the last day.
If anyone “succeeded” in sending the power of attorney to their tax administrator too late, they will have to hurry to file their return and perhaps pay a penalty.
The tax code is bringing us a number of small surprises in the peaks of the tax season. The deadline for filing of tax returns has been extended by one day but powers of attorney must be sent in advance. Such as money.
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