logo

TAX LITIGATION

Even with the most prudent business management, tax pitfalls cannot always be avoided. In addition, a tax authority procedure in itself is a source of extreme stress and workload for a business. In such situations, we can help our clients with our unique experience in tax proceedings and tax litigation. We even find pleasure in using our professional expertise and our firm is proactive approach to force the tax authority to back down.
Our tax litigation team »
RANKINGS
Tier 1 – Tax controversy - International Tax Review
Market leader - Chambers Europe
Market leader – Legal 500 EMEA
idezet

OUR LATEST POSTS

Tamás Fehér

Transfer Pricing and VAT Go Hand in Hand

Tamás Fehér, | 1 October 2025

In its judgment in the Arcomet case, the Court of Justice of the European Union (CJEU) shed light on an area that has previously received less attention: certain transfer pricing adjustments cannot be regarded merely as accounting entries. In many cases, they may qualify as VAT-taxable services. This ruling prompts a reconsideration of how intra-group settlements are treated from a VAT perspective.

Péter Barta

Companies Facing the Heat of Criminal Proceedings

Péter Barta | 8 May 2025

It is a common misconception that criminal liability and risks apply only to individuals, and that companies are safe from such proceedings. However, this is far from the truth. Moreover, companies often become subject to reputational damage already at the very beginning of an investigation, suffering irreversible damage – even before the case has truly started.

Leading Tax Dispute Resolution Practice

Tax disputes can threaten business operations, create significant financial exposure, and consume valuable management resources that should be focused on core business activities. When tax controversies arise, the quality of legal representation often determines the difference between a favorable resolution and a costly defeat. At Jalsovszky, we have established ourselves as Hungary's premier tax litigation practice, providing sophisticated legal representation that protects our clients' interests while achieving optimal outcomes in even the most complex tax disputes.

Our approach to tax litigation combines aggressive advocacy with strategic thinking, ensuring that every dispute becomes an opportunity to establish favorable precedent while protecting our clients' immediate interests. As leading tax litigation lawyers in Budapest, we understand that successful tax dispute resolution requires more than technical legal knowledge – it demands deep understanding of tax policy, administrative procedures, and judicial decision-making processes that can significantly impact case outcomes.

The complexity of modern tax disputes extends across multiple areas of law, requiring coordination between substantive tax analysis, procedural expertise, and strategic litigation management. Our integrated approach ensures that all aspects of tax disputes are carefully managed, providing our clients with comprehensive representation that addresses both immediate dispute resolution needs and long-term strategic considerations.

Whether facing routine tax audits, complex transfer pricing disputes, or constitutional challenges to tax legislation, our team brings the expertise and strategic insight necessary to achieve successful outcomes in Hungary's sophisticated tax dispute resolution system.

Comprehensive Tax Dispute Strategy

Every successful tax dispute resolution begins with thorough strategic assessment that evaluates both the strengths and weaknesses of our clients' positions while identifying optimal resolution pathways. Our comprehensive approach to dispute strategy encompasses initial case evaluation through final resolution, ensuring that every decision supports our clients' broader business objectives while maximizing the likelihood of favorable outcomes.

Case assessment and strategy development require careful analysis of factual circumstances, applicable legal standards, and procedural options that may affect dispute outcomes. We work closely with clients to understand the underlying business context while evaluating various resolution alternatives, including administrative procedures, settlement negotiations, and formal litigation pathways.

The risk evaluation and management form critical components of an effective dispute strategy, where proper assessment can prevent costly mistakes while identifying opportunities for favorable resolution. Our systematic approach to risk analysis considers both immediate financial exposure and broader strategic implications that may affect our clients' ongoing tax compliance and business operations.

Settlement negotiation strategy often provides the most efficient path to dispute resolution, where a skilled negotiation can achieve favorable outcomes while avoiding the costs and uncertainties of a formal litigation. We excel in developing creative settlement solutions that address underlying business concerns while providing our clients with certainty and closure.

Litigation planning and preparation become essential when disputes cannot be resolved through administrative procedures or settlement negotiations. Our litigation expertise ensures that cases are properly positioned for success through thorough factual development, comprehensive legal analysis, and strategic presentation that resonates with judicial decision-makers.

Expert Tax Dispute Resolution Process Navigation

Hungary's tax dispute resolution process involves multiple stages and procedural requirements that must be carefully navigated to protect our clients' interests and maintain all available legal remedies. Our expertise in dispute resolution procedures enables us to guide clients effectively through each stage while optimizing their positions and preserving strategic flexibility.

Representation before the tax administration’s audit forms the initial stage of most tax disputes, where proper handling can often prevent escalation to formal dispute proceedings. We provide comprehensive audit support that protects our clients' interests while seeking to resolve issues efficiently through administrative procedures.

Appeal procedures offer important opportunities to resolve disputes without resorting to formal litigation, where effective presentation can achieve favorable outcomes while maintaining positive relationships with tax administrations. Our expertise in appeal procedures enables us to present compelling arguments that address both legal and policy considerations.

First-instance court proceedings require specialized expertise in tax court procedures, evidence presentation, and judicial advocacy that can significantly impact case outcomes. We excel in tax court litigation, where our experience enables us to present complex technical arguments in accessible formats that facilitate judicial understanding and favorable decision-making.

Supreme Court representation becomes critical when first-instance court decisions require review or when establishing important legal precedent for future cases. Our expertise ensures that cases are properly positioned for success through sophisticated brief writing and oral argument presentation that addresses both immediate case concerns and broader legal implications.

Constitutional Court challenges may become necessary when fundamental legal principles are at stake or when tax legislation raises constitutional concerns. We provide specialized expertise in constitutional litigation that enables our clients to challenge improper governmental action while establishing important legal precedent.

Advanced Tax Procedure Law Expertise

Tax procedure law in Hungary encompasses complex rules governing administrative procedures, evidence requirements, and procedural safeguards that significantly impact dispute outcomes. Our specialized expertise in procedural matters enables us to navigate these requirements effectively while identifying procedural advantages that support our clients' substantive positions.

Procedural compliance and deadline management require systematic attention to various filing requirements, response deadlines, and procedural obligations that can affect case outcomes. Our systematic approach to procedural compliance ensures that all requirements are met while preserving all available legal remedies and strategic options.

Evidence gathering and presentation represent critical components of a successful tax dispute resolution, where proper documentation and expert testimony can determine case outcomes. We excel in developing comprehensive evidentiary presentations that support our clients' positions while addressing counterarguments and potential weaknesses.

Discovery and information exchange procedures require careful balance between providing necessary information and protecting confidential business data and strategic positions. Our approach is to strategically disclose evidences that support our clients' cases while minimize unnecessary exposure of sensitive information.

Procedural challenge strategies sometimes provide opportunities to achieve favorable outcomes through procedural arguments rather than substantive tax analysis. We excel in identifying and pursuing procedural challenges that can result in case dismissal or favorable resolution without touching the substantive merits of the case.

Specialized Tax Litigation Areas

Modern tax litigation encompasses diverse subject matters that require specialized expertise in both substantive tax law and litigation strategy. Our comprehensive practice covers all major areas of tax controversy, from routine compliance disputes through complex constitutional challenges that establish important legal precedent.

Transfer pricing disputes have become increasingly complex as tax authorities focus on intercompany transactions and profit allocation arrangements. We provide specialized expertise in transfer pricing litigation, including economic analysis coordination, expert witness management, and strategic presentation of complex technical arguments.

Corporate tax controversies often involve sophisticated legal and factual analysis regarding business transactions, reorganizations, and operational arrangements. Our expertise in corporate tax litigation enables us to present compelling arguments that support our clients' business arrangements while addressing technical tax requirements.

International tax disputes require coordination between Hungarian domestic law and international tax treaty obligations, creating complex legal and factual issues that demand specialized expertise. We excel in international tax litigation, where our experience enables us to navigate complex jurisdictional and choice-of-law issues effectively.

Constitutional tax challenges may become necessary when tax legislation or administrative practices violate fundamental constitutional principles or European Union law requirements. We provide specialized expertise in constitutional litigation that enables our clients to challenge improper governmental actions.

VAT and indirect tax disputes often involve complex regulatory requirements and technical compliance issues that require specialized knowledge of indirect tax systems and procedures. Our indirect tax litigation expertise ensures effective representation in these technically demanding disputes.

Strategic Litigation Management

Effective tax litigation requires comprehensive case management that coordinates legal strategy with business objectives while managing costs and timeline considerations. Our systematic approach to litigation management ensures that cases proceed efficiently while maintaining focus on achieving optimal outcomes for our clients.

Case team coordination and management become essential in complex disputes involving multiple parties, extensive documentation, and sophisticated legal arguments. We excel in managing large-scale litigation teams while maintaining clear communication and strategic focus throughout extended proceedings.

Expert witness coordination and management often determine the success of complex tax disputes, where technical expertise and credible presentation can significantly impact judicial decision-making. We work closely with leading tax experts, economists, and industry specialists to develop compelling expert testimonies that support our clients' positions.

Cost management and efficiency considerations require careful balance between thorough case preparation and reasonable cost control that enables our clients to pursue meritorious cases without excessive financial burden. Our approach emphasizes efficient resource allocation while maintaining high-quality representation standards.

Public relations and communication management may become important in high-profile disputes that could affect our clients' business reputation and stakeholder relationships. We provide strategic guidance on communication strategies that protect our clients' interests while maintaining appropriate confidentiality and professional standards.

Cross-Border Tax Dispute Resolution

International businesses often face tax disputes that span multiple jurisdictions, requiring coordination between various legal systems and tax authorities. As an experienced tax litigation law firm in Hungary, we provide comprehensive support for cross-border disputes that involve Hungarian tax issues while coordinating with international counsel to ensure consistent global strategies.

Mutual agreement procedures under tax treaties provide important mechanisms for resolving international tax disputes through diplomatic procedures rather than formal litigation. We represent clients in MAP procedures while coordinating with foreign counsel to achieve consistent resolution across multiple jurisdictions.

EU state aid investigations and challenges require specialized expertise in European Union law and administrative procedures that affect tax ruling and incentive arrangements. We provide comprehensive support for state aid matters while coordinating with Brussels counsel to ensure effective representation throughout complex administrative proceedings.

International arbitration procedures under tax treaties offer alternative dispute resolution mechanisms for certain categories of international tax disputes. We represent clients in tax treaty arbitration while coordinating with international arbitration counsel to ensure effective presentation of technical tax arguments.

Cross-border enforcement and collection disputes require careful coordination between various legal systems and enforcement mechanisms. We provide strategic guidance on enforcement defense strategies while coordinating with international counsel to protect our clients' assets and business operations.

Why Choose Our Tax Litigation team

Our reputation as Hungary's leading tax dispute resolution practice reflects our commitment to delivering exceptional outcomes through aggressive advocacy, strategic thinking, and comprehensive legal expertise. Jalsovszky combines deep understanding of Hungarian tax law with extensive litigation experience, enabling us to provide representation that achieves optimal results while protecting our clients' broader business interests.

The trust that multinational corporations, financial institutions, and high-net-worth individuals place in our tax litigation services stems from our consistent track record of successful dispute resolutions across various case types and complexity levels. Our experience includes landmark cases that have established important legal precedents while achieving favorable outcomes for our clients.

Our integrated approach combines traditional litigation expertise with specialized knowledge in tax policy, international tax law, and regulatory compliance. This comprehensive capability enables us to provide tax dispute representation that addresses all relevant legal and strategic considerations while optimizing outcomes and protecting our clients' long-term interests.