26.04.2023
HOW WE ARE RETURNED FEES IN CASE OF DELETED SENIOR SERVICE
Often, employees of the National Social Security Institute issue mandatory prescriptions for the deletion of insurance experience in the case of discovered violations and attempts at unjustified use of insurance rights. Therefore, we present the position of the National Revenue Agency on how in these cases a refund of paid taxes and insurance can be requested.
The National Social Security Institute issues a mandatory prescription for deleting the social security experience of a self-insured citizen (deletion of data submitted with declaration form No. 1), which was confirmed by a decision of the Supreme Administrative Court. The reason for this was violations discovered by the National Social Security Institute. The questions were asked:
By application of insurance legislation:
The control bodies of the National Social Security Institute issue mandatory prescriptions for compliance with the provisions of the state social insurance. On the basis of Art. 16 of Ordinance No. H-13 of December 17, 2019 on the content, terms, method and order of submission and storage of data by employers, insurers for persons insured by them, as well as self-insured (Ordinance No. H-13/17.12.2019) the control of compliance with the regulation is carried out by the National Revenue Agency and the National Social Security Institute.
Pursuant to Art. 9, Para. 5 of Regulation No. H-13/17.12.2019, declarations under Para. 1 (including declarations model No. 1) are not submitted for correction and deletion of data after April 30 of the year , following the year to which they relate. After this period, declarations are submitted only in electronic or paper form after the permission of the National Revenue Agency or the National Social Security Institute in connection with the activities assigned to them.
Article 4, paragraph 10, item 6 of Ordinance No. H-13/17.12.2019 states that the National Social Security Institute also submits data for those issued under Article 108, paragraph 1, item 3 of the Code for Social Security and mandatory prescriptions entered into force, when the prescriptions are for submitting data under Article 5, Paragraph 4, Item 1 of the Social Security Code, including after the deadline under Article 8, Paragraph 1, Item 4. The data under para. 10, item 6 shall be submitted electronically within three days from the entry into force of the prescription in accordance with the procedure determined by an instruction under art. 23 of the Law on the National Revenue Agency (art. 4, para. 14 of the Ordinance No. H-13/17.12.2019).
Therefore, after the entry into force of the mandatory prescriptions issued by the control bodies of the National Social Security Institute, the citizen can submit declarations model No. 1 for deletion of data.
On the basis of Article 9, paragraph 10 of Ordinance No. H-13/17.12.2019, declaration form No. 6 submitted by persons under Article 4, paragraph 3, items 2, 4 and 5 (including self-insured ), can be corrected until the deadline for its submission expires. After this period, declarations are submitted in paper form or in electronic form and paper form after the permission of the National Revenue Agency. Declaration form No. 6 is submitted with a correction code when the amount of a declared obligation is reduced. In this case, in addition to the corrected ones, all other data from the corresponding column of the previously submitted declaration are also filled in.
Self-insured persons determine the final amount of their monthly insurance income in accordance with Article 6, paragraph 9 of the Social Insurance Code - for the period during which work was carried out in the previous year based on the data declared in the Annual Tax Return Declaration under the Personal Income Tax Act, which cannot be less than the minimum insurable income and greater than the maximum insurable income. The annual insurance income is defined as the difference between the declared or established by the revenue authority under the conditions and according to the procedure of the Tax-Insurance Procedural Code taxable income from the exercise of labor activity and the sum of the incomes on which advance insurances have been paid.
When, with a corrective Annual Tax Declaration under Article 50 of the Personal Income Tax Act, the self-insured person declares taxable income in a smaller amount than the one already declared, he also fills in the Statement of the final amount of the insurance income in order to form a new annual Social Security income. If, after correction of the final amount of the insurance income, the insurance payable by a self-insured person is less than the sum of the declared with declaration form No. 6 and the advance and final insurance contributions paid by him, the difference appears to have been unreasonably paid. In this case, the self-insured person should submit a corrective declaration form No. 6 according to the order described above.
In order to submit corrective declarations form No. 6, with which to erase the formed obligations under the already submitted declarations form No. 6 for previous years, he should request permission from the National Revenue Agency.
The procedure for the refund of unduly paid amounts, subject to refund and collected by the National Revenue Agency, is regulated in art. 128-130 of the Tax-Insurance Procedural Code. Withholding and refunding can be done after submitting a request to the National Revenue Agency, to which supporting documents should be attached.
By application of tax legislation:
When making corrections to already filed annual tax returns under Article 50 of the Law on Personal Income Taxes, the procedure for corrections of Article 53, Paragraph 2 of the Law on Personal Income Taxes shall apply. On this basis, upon detection of an error in the declared data and circumstances, the basis and the determined obligations after the legally established period, the taxable persons have the right, once until September 30 of the year following the year of acquisition of the income, to make changes by submitting new declaration.
When this deadline is not met and a correction of a declaration for previous tax years is required, there is an opportunity for correction in accordance with Art. 103, para. 1 and 2 of the Tax-Insurance Procedural Code.
The person should make a request to the revenue authorities to allow a correction of an annual tax return and indicate the reasons for this.
Pursuant to Art. 103, in the event of inconsistencies between the content of the submitted declaration and the requirements for its completion or inconsistencies between the data in the declaration and the data received by the revenue authorities from third parties or administrations, in accordance with the requirements of the tax and insurance legislation for submitting declarations or information, except for the cases under Art. 101, para. 4 and Art. 102, para. 4, the sender is invited to remove the inconsistencies within 14 days of receiving the message. Inconsistencies are rectified by submitting a new declaration.
Given the decision of the Supreme Administrative Court, the citizen has the opportunity to request the correction of an annual tax return and a refund of the tax paid, provided that the statute of limitations has not expired.
The procedure for carrying out the withholding/reimbursement is described in Article 129, Paragraph 1 of the Tax-Insurance Procedural Code. The admissibility for its implementation is tied to a preclusion period, in which the request should be submitted. It is the same until the expiration of 5 years, starting from January 1 of the year following the year in which the reason for reimbursement arose, unless otherwise provided by law.
Regarding the merits of the request, the following should be considered:
The debtor's claims from the state are classified as private law, which is why the Law on Obligations and Contracts is applicable to them. Repayment of private law claims according to Article 110 of the Law on Obligations and Contracts takes place with the expiration of a 5-year statute of limitations.
The statute of limitations begins to run from the moment the claim became due and this is the entry into force of the judgment of the Supreme Administrative Court.
