Tax courts are specialized courts that hear tax-related cases and settle disputes between citizens and the government. They are present in most countries, with some having separate tax divisions. Tax courts are presided over by judges with specific training in tax law and are designed to prevent mainstream court systems from being overwhelmed. There are different types of tax courts, including administrative tax courts, state tax courts, and tax appellate courts. Appeals against national sovereign governments are filed with national tax courts, which can have long waiting times.
A tax court is a court that hears only tax-related cases. These types of courts are called tax courts in some jurisdictions. Their main function is to settle tax collection disputes between citizens and the government.
Almost every country in the world has some kind of tax structure. Some smaller localities, such as cities and states, also assess taxes. Citizens and residents are generally obligated to pay taxes under applicable tax laws.
In some countries, such as Australia and Great Britain, tax disputes are filed together with any other disputes, in the courts of general jurisdiction. Other countries, such as the United States, Canada and India, have special tax divisions of their court systems. In these countries, a tax court is where tax law enforcement disputes are heard and where tax enforcement issues are resolved. Tax courts were designed in many respects to prevent the mainstream court system from being overwhelmed by nuanced and complicated tax policy issues.
The tax courts are presided over by judges with specific training in tax law. Different jurisdictions have different rules regarding how judges are selected, but most are appointed by local or national leaders. A judge in a tax court will hear nothing but tax matters and is generally considered an authority on how various tax structures should be applied.
There are different types of tax courts. The most basic operates as an administrative court, holding grievances taxpayers have against local tax authorities. Administrative Tax Courts deal primarily with municipal tax authorities and county-level property tax assessments. Trials are sometimes held in these settings, but agreements and negotiated resolutions are more common.
Many states and provinces also have tax courts. A taxpayer who wishes to file a complaint against a state-level tax authority will do so here. State tax courts are generally more formal than administrative tax courts and operate more like regular courts. While settlements are almost always encouraged, trials often take place in state tax courts.
Tax courts are commonly combined with tax appellate courts. When a taxpayer challenges a court’s decision, or when the tax authority wants the decision reviewed, the case is usually referred to a tax appellate court. Appellate courts are often housed in the same building as the regular tax court, but their records consist solely of audits.
Appeals against the national sovereign government are typically filed with the national tax courts. There is usually only one national tax court in a given country, which means that the waiting time for a decision or even a hearing can be quite long. Some courts, such as the United States Tax Court, have a “fast track” option for minor claims. However, even the quick process takes time and filing can be expensive. Usually only the most egregious tax complaints are prosecuted at the national tax court level.
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