A Comprehensive Guide to Administrative Law in Taxation
What Justifies the Existence of Administrative Law in Taxation?
For the state to effectively collect taxes, it’s not enough for the legislature to simply create laws outlining taxable events. The administration must actively ensure these events are declared and taxes are paid truthfully. This ensures public coffers receive the correct amount of revenue.
What Personal Elements are Involved in Administrative Tax Law?
The two main parties involved are:
- The administration (usually the Treasury)
- Tax debtors (individuals or entities obligated to pay taxes)
Other parties, known as third parties, may also be involved as determined by law.
How are Authorities Classified?
- Determination Authority: Administrative authorities
- Monitoring Authorities: Revenue Authority
- Repression Authorities
Classification of Managed?
- Deceased Taxpayer Debt or Own: An individual who triggers a taxable event and is obligated to pay taxes. They are directly responsible to the Treasury.
- Causing Foreign Debt Taxpayers: Third parties who, by their actions or inactions, create tax obligations and liabilities.
Unlike civil liability, which arises from causing damage, tax liability arises from the legislator’s regulations, regardless of damage.
How Many Types of Responsibilities are Within Tax Administrative Procedures?
- Substitute Responsibility
- Joint and Several Liability
- Objective Responsibility
- Warranty Responsibility
How do You Certify the Representation of Individuals with the Tax Authorities?
- By public document
- By private document
What is Consulting?
Consulting involves seeking clarification or an interpretation from the tax authorities on a specific tax provision. This helps taxpayers understand the administrative criteria and approach to interpretation.
Why are Particular Reasons Available to the Tax Authorities?
- Taxpayers may have doubts about interpreting a specific provision.
- Taxpayers seek to understand the authority’s administrative criteria for interpretation.
- The interpretive approach does not require the authority to have authority over the particular taxpayer.
- Consultation can serve as pre-trial evidence.
- Consultations can be a combination of the above reasons.
When is the Authority Obligated to Answer a Query?
The authority is only obligated to answer queries that meet these requirements:
- Formulated individually by the taxpayer
- Pertain to a real and concrete situation the taxpayer is experiencing
What Happens if the Query is Resolved Favorably for the Taxpayer?
If the authority rules in favor of the taxpayer, rights are established in their favor. The principle of finality of administrative decisions (Article 36 of the Tax Code) prevents the authority from modifying its own resolution.
What is the Response Time for the Authority?
While specific laws may have set deadlines, the Supreme Court has indicated that a”short ter” should be understood as three months if no specific deadline is provided.
What Can Taxpayers Do in Case of Administrative Silence?
Taxpayers can seek protection from the competent district court if the authority fails to respond within a reasonable time. This is based on the violation of the Constitutional Clause 8 in relation to Article 37 of the Tax Code. This action doesn’t compel the authority to rule a certain way, but rather to provide a response.
What is the Concept of Administrative Procedure?
Administrative procedure refers to the legal means and steps involved in carrying out actions that contribute, directly or indirectly, to the production of administrative acts or guarantees.
What Principles Should the Authority Consider During an Administrative Procedure?
Two key principles are:
- Principle of Legality and Due Justification: Enshrined in Article 16 of the Constitution, this principle ensures that any action taken against an individual is justified and carried out according to the law.
- Guarantee of Essential Formalities of Procedure and the Right to a Hearing: This principle, derived from Article 14 of the Constitution, guarantees individuals the right to be heard, present evidence, and defend themselves in any legal proceedings.
How is the Principle of Legality and Proper Justification Established?
Article 16 of the Constitution states that no one can be disturbed without a written order from a competent authority, clearly stating the legal basis and motivation for the action.
What Formalities Must Be Met During an Administrative Procedure?
To comply with the principle of legality and due process, the following formalities must be observed:
- The taxpayer must be notified of the proceedings initiated against them and the potential consequences.
- A system for verifying evidence and claims must be established.
- Parties must have the opportunity to present their case and evidence.
- The procedure must conclude with a resolution addressing the matter at hand.
How is the Right to a Hearing Established in Administrative Tax Law?
Article 14 of the Constitution guarantees the right to a fair hearing, ensuring individuals have the opportunity to present evidence and defend themselves before any decision is made that could affect their property or rights.
How Many Types of Notifications are Used in Tax Administrative Procedures?
There are three main types of notifications:
- Citation: A summons from the authority requiring the relevant person to appear at a specific place and time.
- Requirement: A formal request from the authority requiring the relevant person to perform, provide, or refrain from a specific action.
- Location: A notification requiring the relevant person to present themselves to the tax authorities within a specified timeframe, for example, when determining a tax credit.
What are the Methods of Service of Administrative Acts?
Administrative acts can be served through various methods:
- Personally
- Certified mail with return receipt requested
- Regular mail
- Telegram
- Courts
- Edicts
- Instructions
- Electronic media