Administrative penalties

On 1 June 2017, the amendment to the Code of Administrative Proceedings (adopted on April 7, 2017) entered into force in the Code, Section IVa , comprehensively regulating the issue of administrative fines:

• the scope of application of the provisions,
• legal definition of administrative penalty,
• directive on imposing a penalty,
• waiving the imposition of a penalty,
• limitation of the imposition of the penalty and its execution, and
• relief in imposing a penalty.

1. The scope of application of the provisions
   The new regulations should be applied both in relation to fatal states arising after the entry into force of the Act and those from before the entry into force, unless the legal status in force in the time of the event is more relative to the subject.
   If there are separate provisions regulating the issues of specific administrative sanctions, the regulation of Section IVa shall only apply in a subsidiary manner. It is not used in when the body decides on the basis of the provisions on:
   • proceedings in cases concerning misdemeanors,
   • disciplinary responsibility,
   • order responsibility,
   • liability for violation of public finance discipline.
2. The legal definition of an administrative fine
   Article 189b introduces a legal definition, according to which the administrative pecuniary penalty is a monetary sanction, imposed by a decision by a public administration authority for a violation of the law by a natural person, legal or imperfect legal person (failure to comply with obligations or violation of the prohibition). Additionally, in accordance with art. 189 e, the party is not punished if the violation occurred due to force majeure. If the party delays the payment of the amount due, the interest for the delay in the amount applicable to the tax arrears is added to the amount.
3. Directives on imposing a penalty When imposing a penalty, the authority shall take into account: the personal values of the infringer (natural person), the degree of contributing to the infringement, the benefit obtained from the violation, actions taken by the party to address or remove the effects of the violation; the gravity and circumstances of the violation (especially the threat to life and health) and similar violations committed by the party in past (also convictions for crimes and offenses).
4. Withdrawal from the imposition of a penalty Section IVa introduces the principle of opportunism when imposing an administrative penalty. It manifests itself in the order to withdraw from punishment and stop at the instruction when the scale of the infringement is negligible and the party ceases to violate the law or if the party has already been punished for the same behavior (in administrative, criminal or offense proceedings) and the penalty already meets the objectives to comply with the administrative penalty (the structure is very similar to the absorption write-off). In addition, if the above premises do not occur, but „it will allow to meet the purposes for which an administrative fine would be imposed”, the authority issues a ruling ordering the party to provide evidence for the removal of the infringement or notification of infringers. If the party presents such evidence, the authority will issue decisions on waiving the penalty.
5. Limitation
   a) Limitation of the imposition of a penalty
   The card can not be imposed after 5 years from the date of the violation or the consequences of its occurrence. This deadline is interrupted in the case of bankruptcy and suspended in the event of: lodging an appeal, making a claim to establish the existence of a relationship (common court), ordering a security under the provisions on administrative enforcement.
   b) Limitation of execution
   Administrative penalty payment is not enforceable if 5 years have elapsed since the day on which it was to be exercised. The time limit shall be interrupted in the event of: declaration of bankruptcy, application of an enforcement measure of which he was obliged to notify or ordering security in accordance with the provisions on enforcement proceedings in administration.
6. Relief in the execution of punishment
   The authority may grant a concession in the execution of a penalty (ie it is an optional or discretionary decision) if the conditions are met: the party has submitted a request for a concession and it is justified by an important public or private interest. It should be remembered that in the case of entities running a business activity, such a concession can be granted only if it does not constitute state aid or constitutes de minimis public aid or public aid complying with the requirements specified in art. 189k par 3 point 3 (the relief is aimed at repairing damages caused by natural disasters (or other exceptional occurrences), remedying serious disturbances in the economy and at the same time it is in line with the principles of the EU internal market).
   The Act provides for a closed catalog of relief forms, i.e .:
   • postponing the date of administrative penalty payment or spreading it into installments;
   • postponing the deadline for completing an outstanding administrative fine or spreading it into installments;
   • cancellation of an administrative fine in whole or in part (the interest is also depreciated proportionally to the principal amount written off)