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      The international and domestic tax landscape is constantly evolving. As the challenges of taxpayer filings continue to increase in Luxembourg, so does the crackdown on potential tax issues of taxpayers by tax authorities. Late tax return filings can be subject to hefty fines and penalties. Even in the event of a tax assessment challenge, lodging a claim does not suspend the obligation to pay the taxes due.

      As the number of cases increases, personal and corporate tax service solutions require a revamp. Our team of experts is here to support you in your tax investigations and audits initiated by the Luxembourg tax authorities. Our restructured tax controversy services offer more robust, more efficient and better-managed solutions for our clients.


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      What we cover

      Our tax specialists will work with you to minimize the likelihood of a challenge or audit before a tax dispute arises. For those matters that ultimately become the subject of a dispute, we rely on external tax litigation experts to help you resolve the dispute efficiently.

      For international tax disputes, we work closely with KPMG’s global network of professionals. We assist with:

      • Tax audit support
      • Negotiation with tax authorities
      • Administrative appeal
      • Litigation in tax courts
      • Tax mediation
      • Mutual agreement procedure (MAP) experience
      • Alternative dispute resolution (ADR)

      At KPMG, our support framework is designed to help businesses anticipate and address potential challenges before they escalate. By combining technical expertise with strategic guidance, we assist in preventing disputes, managing audits effectively, and achieving favorable resolutions when necessary.


      Prevention

      Pre-audit phase

       

      • Reviewing or preparing the supporting documentation of your material tax positions (ATAD 2, CFC, etc.)

      • Reviewing transfer pricing policies

      • Reviewing VAT supporting documentation

      • Submitting Advance Pricing Agreements and Advanced Tax Agreements 

      • Reviewing operational models and processes

      • Coordinating "course of conduct" reviews to ensure that post-structuring operations align with initial implementation plans

      • Assisting in transactional due diligence to identify tax audit and controversy risks and exposures

      • Carrying on pre-audits to identify transfer pricing and tax audit impacts 

      • Once risks are identified, develop and implement other options to the current business model to mitigate your company's risk profile.



      Management

      Audit and examination phase

      • Audit management related to information requests

      • Assistance with strategic decisions and case management

      • Support in document production

      • Assistance in discussions with the tax authorities. 



      Resolution

      Post-audit settlement and resolution phase

      • Submission of pre-litigation claims with the tax authorities

      • Preparation of litigation support for court proceedings, assistance in mediation

      • Advance pricing agreement negotiations using "roll-back" features to resolve pre-existing disputes

      • Check the opportunity to use competent authority and MAPs to resolve international tax disputes, i.e., cases of double taxation, as well as inconsistencies in the interpretation and application of a double tax treaty and assistance to negotiations in these proceedings. 





      Tax controversy series

      Read our monthly tax controversy series in AGEFI Luxembourg. We review the latest tax judgments, providing insights into the most recent developments in Luxembourg’s tax controversy landscape.



      Our expert

      Emilien Lebas

      Partner, Tax Controversy Leader

      KPMG in Luxembourg


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