The Internal Revenue Board is the supreme administrative appeals authority for cases regarding taxation, VAT, and duties. It is independent both of the Directorate of Internal Revenue (Ríkisskattstjóri/RSK) and of the Ministry of Finance. The Internal Revenue Board provides independent merits reviews of administrative decisions. It reviews a wide range of administrative decisions made by the Directorate of Internal Revenue including its administratively binding advice. It is also within the jurisdiction of the Internal Revenue Board to review decisions on inheritance tax made by the district commissioners (sýslumaður).
Another role of the Internal Revenue Board is to rule on fines in cases referred to it by the Directorate of Tax Investigations (Skattrannsóknarstjóri).
Making an appeal
If you want to appeal a decision made by the Directorate of Internal Revenue or by a district commissioner, please note the following:
Important: Making an appeal because of disputes over taxation does not give you a new deadline or payment date for tax claims nor bring about absolution of any penalties that have been charged because of lack of tax payment. In special circumstances, this clause can be deviated from with the decision of the Minister of Finance.
Taxes are collected by the respective debt collector of the Treasury. The Directorate of Customs in Reykjavík (Tollstjóri) is responsible for collecting the taxes in the administrative district of Reykjavík and district commissioners in other administrative districts. If taxation is lowered after a ruling of the Internal Revenue Board, reimbursement of taxes will take place.
The appeals process
When the Internal Revenue Board receives an appeal, a copy of it is sent to the Directorate of Internal Revenue. The role of the Directorate of Internal Revenue is threefold in the appeal process: It provides the Internal Revenue Board with the original documents of the case, it collects additional documents, if deemed necessary, and makes a plea for the State Treasury within 45 days from the arrival of the appeal.
When you appeal to the Internal Revenue Board, it will send you a copy of the plea made by the Directorate of Internal Revenue as well as copies of additional documents, if any. You will be given an opportunity to respond to the claims made by the Directorate of Internal Revenue. Generally, you must reply within 20 days.
The Internal Revenue Board aims to ensure that cases are processed as quickly as possible. However, it has six months to rule on your appeal from the date when it receives all the necessary documents from the Directorate of Internal Revenue. When a decision is reached, the Internal Revenue Board sends its ruling to you and your representative, if any, as well as to the Directorate of Internal Revenue.
There are no fees for making an appeal to the Internal Revenue Board.
The Internal Revenue Board can decide a reimbursement for your expenses due to an appeal to the Internal Revenue Board if the ruling is in your favour, in full or in part. You must make a claim for reimbursement and provide documents supporting your costs.