Tax litigation has generally not been the preferred approach to resolving disputes with tax authorities. Taxpayers instead, favored resolution using administrative remedies within the taxing body itself in an effort to avoid the cost and public forum that litigation entails. In many ways, this is still the case, but in some countries, tax litigation appears to be the only means by which a taxpayer may obtain relief from tax assessments. This is especially true where the assessment involves international tax matters.
Before proceeding with tax litigation, taxpayers should carefully evaluate the benefits and burdens of such a decision. Publicity surrounding the case and the decision, the duration and costs of litigation, and the likelihood of a favorable outcome must all be carefully weighed in arriving at a final conclusion. Nevertheless, despite the challenges involved, taxpayers should not be discouraged from litigating disputes, and tax authorities should be aware that taxpayers will not hesitate to litigate when necessary, even if the amounts at stake are not objectively significant.
Our webcast explores the tax litigation process in Brazil, France and Russia. You will hear from disputes professionals from these jurisdictions as they share their experiences and offer practical insights into the litigation process.