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Commentary

Late payment interest (Hungary)

21 Hungary

Penalties (Hungary)

The Hungarian tax authority can levy, amongst other things, tax penalties and default fines. The sanctions have a dual function: on the one hand, the sanctions cause a financial disadvantage to the taxpayer for breach of liability; on the other hand, they have a preventive, dissuasive effect so that similar errors and failures can be avoided in the future.

The penalties fall into four broad categories:

  1. Ìý

    •ÌýÌýÌýÌý late payment interest – imposed in the event of late payment of tax;

  2. Ìý

    •ÌýÌýÌýÌý self-revision surcharge – imposed when the taxpayer corrects the mistake before tax audit;

  3. Ìý

    •ÌýÌýÌýÌý tax penalty – imposed in the event of a tax

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