Reopening of proceedings

What it means

Reopening of proceedings is an extraordinary remedy that opens again proceedings closed by a final decision. In tax matters it is governed by the Tax Procedure Code, in other administrative matters by the Administrative Procedure Code, and in court disputes by the rules of civil procedure. Its purpose is to correct a decision resting on a wrong or incomplete factual basis.

Typical grounds for reopening are new facts or evidence that already existed when the decision was made but which the party could not raise through no fault of its own, a decision based on forged evidence or a crime, or the annulment of a decision on which the original one relied. A new view of the same facts is not a ground.

Reopening differs from an ordinary appeal in that it targets a final decision and has strictly limited grounds and deadlines. There is usually a subjective deadline running from the day the party learned of the ground and an objective deadline running from when the decision became final. Once they pass, reopening can no longer be obtained.

How it works in practice

In tax practice reopening is considered mainly after a tax audit, when documents that could have changed the outcome appear after the tax assessment decision, such as a confirmation from a foreign supplier or a decision of another authority. The taxpayer can apply for reopening, but the tax administrator can also order it on its own initiative.

Reopening is not the only way to correct tax. If there was no audit, the taxpayer can simply file a supplementary tax return. Reopening comes in where tax has been set by a decision and a supplementary return can no longer be filed. Choosing the right route saves time and money.

An application for reopening must state a specific ground, the evidence and when the applicant learned of the ground. Preparation therefore includes a timeline of events and keeping records of when the new fact arrived. In more complex matters we recommend consulting a tax adviser or lawyer before filing.

What to watch out for

The most common mistake is missing the deadline. Companies spend a long time weighing whether reopening is worth it, and the subjective deadline expires in the meantime. If new evidence emerges in a closed matter, record the date at once and assess the next steps rather than waiting for year-end or the next audit.

Reopening does not fix errors the party could have raised in the original proceedings. If a company failed to submit documents it had during an audit, it generally cannot later rely on them as a new fact. It is therefore important to cooperate in the audit and submit everything relevant in good time.