Important change in tax litigation: the Curia can make a final decision faster

Tax lawsuits have been delayed so far because the Curia, if it disagreed with the first-instance judgment, could at most send the case back to the first-instance court. According to the new rule, once all the facts are clear, the Curia itself can decide on the merits, so clients will reach a final result sooner.

This and further amendments will enter into force on 1 January 2026. There is currently no transitional provision that would make an exception, which means that the rules – as of now – must also be applied to ongoing lawsuits.

Five key changes to the Code of Administrative Procedure:

Expansion of immediate legal protection: Immediate legal protection (e.g. suspensive effect, interim measure) can now be requested not only against tax authority decisions, but also against court decisions.

Abbreviated reasoning: In simpler cases, the court can provide abbreviated reasoning, which ensures faster resolution. However, in the case of such a judgment, the intention to review must be indicated within 5 working days. Failure to do so will result in loss of rights. This is why it is particularly important to observe deadlines and accurate administration.

Decision without a hearing: if neither party disputes the expert opinion obtained during the trial preparation phase, the court may also issue a judgment outside of a hearing, which may result in a fee reduction. This speeds up the procedure, but it can also be risky because it cannot be applied in the event of a need for evidence. It will be particularly important to consider the correct litigation tactics in every case.

Sanctioning delay in litigation:
It will be introduced that a fine may be imposed in the event of delay in litigation. It is important that all submissions are relevant and concise, otherwise they may result in sanctions.

Strictness of the right to amend claims: The possibility of amending claims is somewhat narrowed. In addition, the Curia recently issued a Uniformity of Law Decision on the subject, which also tightens the scope for action beyond the deadline for filing claims. Choosing the right direction for the lawsuit is therefore an even more critical strategic issue, because it cannot be corrected later.

“In addition to the new procedural rules, the preparation and management of tax lawsuits requires even greater caution. The court will expect more concise and targeted wording in the submissions, both from the plaintiff and the defendant. The lawsuits will clearly accelerate, and the possibility of errors will further decrease. The appropriate strategy and conscious tactics will be even more valuable during the lawsuits”

– emphasized Dr. Gergely Séra, head of EY’s tax procedures and litigation practice.