Tax evasion – Inconsistency of the Tax Procedure Act with the Constitution of the Republic of Slovenia

Decision of the Constitutional Court no. U-I-492/20 of 5 October 2023 – Constitutional Court of the Republic of Slovenia (

The legislator did not clearly, definitively and comprehensively regulate the legal consequences of unauthorized tax avoidance, which is otherwise defined in the fourth paragraph of Article 74 of the Tax Procedure Act (ZDavP-2).

The ZDavP-2 Act currently does not provide tax payers with a clear predictability of the possible legal consequences that could affect them in the event of an identified unauthorized tax evasion, nor does it specify the precise powers to the competent authorities to act in such cases. This led to the finding of the Constitutional Court that the lack of legal provisions adapted for the effective treatment of specific situations, such as the case considered in the constitutional decision, means the non-compliance of the Tax Procedure Act with the fundamental requirement for clarity and distinction of tax regulations, as prescribed in Article 147. Article of the Constitution.

If you have a dilemma regarding tax issues or if an inspection procedure is already being carried out over you, we recommend that the legality of conducting such a procedure is checked for you by a lawyer, who will be able to take appropriate legal action in the event of identified irregularities.