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The NAV may be sued if it causes damage Business Finance 

The NAV may be sued if it causes damage

A NAV can be sued for damages if it can be verified that the damage was caused by the exercise or failure to act, was accurately caused and the damage was not remedied by ordinary redress or administrative action.

As a result of the change of attitude due to the new administrative law, the scope of compensation for damages caused by administrative power increases.

“The NAV may cause damage to the business. For example, the NAV often locks off the bank accounts and inventory of an enterprise as an insurance measure at the beginning of the audit and this may make it impossible to operate. Businesses often complain about such measures, but in general, they are not even looking at the possibility of action for damages against NAV, “he said. Mihály Harcos, head of the Deloitte Legal Taxation Group.

A NAV can be sued for damages if it can be verified that the damage was caused by the exercise or failure to act, was accurately caused and the damage was not remedied by ordinary redress or administrative action.

It is not enough, however, that an administrative court ruling on annulment or new proceedings in tax matters must also be justified to show that the damage is a serious misjudgment of the NAV or a maladministration, or at least a serious negligent misconduct on the part of the administrator or an abnormally unfounded assessment of the evidence, or neglect.

Prior to the entry into force of the new Administrative Code of Human Rights, it was uncertain to judge cases where the NAV caused damage only with minor offenses. In those cases, in the actions brought against the decision of the NAV, the administrative courts did not rule out the infringement because the minor infringements have no effect on the merits of the case.

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