As of the date mentioned, NTCA has introduced, prior to issuing a tax number, the practice of examining, on the basis of the data available, the tax records of the chief executive of, the members authorised to sign for or members with majority/qualified majority vote (hereinafter: member) in the company to be established.If there have arisen any grounds for refusal under the law, NTCA shall refuse to issue a tax number.

Companies with an active tax number similarly undergo a tax registration procedure if they wish to have a new chief executive or member registered, in which case NTCA also checks the tax record. If there are any facts revealed that are obstacles to issuing a tax number and these grounds for refusal are not removed by the company despite the notice, the tax number shall be cancelled and the court of registry shall order the forced liquidation of the taxpayer.

The potential obstacles are examined in relation to the persons of the members and the chief executives. The relevant act provides for the cases of refusal to issue a tax number as follows:

„The state tax and customs authority shall refuse to issue a tax number if the taxpayer’s executive officer, manager, member, shareholder

a) currently holds or previously held an executive office in, or is or has been the manager, or a member or shareholder of another taxpayer

aa) that has any tax debt owed on the day when the application for tax number is submitted, as shown in the state tax and customs authority’s records, less any overpayment, for a period of one hundred and eighty consecutive days, where the amount owed exceeds five million forints, or ten million forints for the largest taxpayers in terms of tax payment,

ab) that was dissolved without succession within five years before the day when the application for tax number is submitted, having tax debt owed, as shown in the state tax and customs authority’s records, less any overpayment, in an amount exceeding five million forints, or ten million forints for the largest taxpayers in terms of tax payment, or

ac) whose tax number the state tax authority has withdrawn within five years before the day when the application for tax number is submitted, for any reason under Subsection (3) of Section 227 and Section 246, by final decision in the procedure defined therein,

b) has any tax debt owed on the day when the application for tax number is submitted, as shown in the state tax and customs authority’s records, less any overpayment, for a period of one hundred and eighty consecutive days, where the amount owed exceeds five million forints, or ten million forints for the largest taxpayers in terms of tax payment; or

c) is restrained by court order from the executive office or from the pursuit of such profession by final court order at the time of submission of the application for tax number."

Taxpayers obliged to register for incorporation continue to meet their registration obligation to the state tax authority in a one-stop shop system, by submitting an application for the registration of incorporation to the court of registry. As a main rule, if none of the obstacles specified in the law are likely to arise based on the data forwarded by the court of registry, the tax registration procedure is performed within 1 work day. If, within the deadline of 1 work day, any of the obstacles is suspected to exist, the procedure shall be performed within 8 work days.

If there is an obstacle and the issuing of the tax number is refused, the decision of refusal shall be subject to appeal and the law furthermore allows for defence for the members or chief executives because of whom the tax authority refused issuing the tax number.

National Tax and Customs Administration