How should you respond to a tax audit that’s going badly? What options do you have?
Who should you contact? The Conciliator or the Mediator? Who is the best person to talk to?

Whether you are a business or an individual, following a tax audit in which you unsuccessfully challenged the tax authority’s assessment, you may file an appeal to challenge the tax assessment. The tax authority may reject this appeal, in which case you have two months to file a lawsuit with the court, or it may not respond at all.

If your audit was conducted based on documents—meaning the auditor did not visit your premises—and the tax authority has rejected your claim, there is a way to break this deadlock and try to have your case heard, particularly if there is a specific technical issue, by filing a complaint with the conciliator.
The conciliator has 30 days to respond to you (which does not suspend the two-month deadline for filing a lawsuit), but this allows you to benefit from a fresh perspective. The conciliator has jurisdiction over the principal amount of the tax and any penalties, such as those imposed for bad faith (deliberate noncompliance).
He acts independently of the chain of command, reviews the audit, and his opinion is binding on the administration.

When the audit took place “on-site” or the tax authority has not responded to the complaint, the conciliator lacks jurisdiction.
In this case, the taxpayer may still appeal to the mediator of the Ministries of Economy and Finance, who is there to help resolve a relationship issue or a misunderstanding between the taxpayer and the tax authorities, but who may also settle a technical dispute. The mediator issues a recommendation to the tax authorities and proposes an amicable solution that may avoid the need to go to court.
While the conciliator can make a final decision because they have hierarchical authority over tax officials, the mediator can only issue an advisory opinion. However, if the tax administration does not follow this opinion, a judge may take it into consideration once the case is brought before them. Seeking the mediator’s assistance is therefore a real advantage.
Note that the conciliator has no jurisdiction if an attempt has already been made to resolve the matter through the mediator.

There is, therefore, a genuine tactical choice regarding the method of defense: one should begin by referring the matter to the conciliator, if he or she has jurisdiction, while also filing a claim with the court to safeguard one’s rights. Then, if the conciliator’s response is unsatisfactory, one should proceed to the mediator.

These two appeal mechanisms, which are still relatively unknown, apply to all types of tax audits: VAT, income tax, gift tax, local taxes, etc.
The FareWell firm is available to advise you and guide you toward the strategy best suited to your situation and its context.