Public Finance Law: National and International Principles

Posted on Dec 18, 2024 in Law & Jurisprudence

National and International Law

International Law refers to the rules governing the financial relations between two or more sovereign states or between a sovereign state and a person associated with several sovereign states. National Law refers to the rules governing financial relations between a state and the people subject to it. It can be classified as constitutional or ordinary, referring to the standards set forth in the constitution or in common law.

Public Finance Law can be divided into multiple branches:

• Tax
• State Property
• Loans
• Organization Office of Public Finance
• Accounting of the Treasury

Tax Law

Tax Law refers to taxes, subjects, fees, and procedures for determining them. It is also known as Tax Law and is the most important branch of financial law. Tax Law has been evolving from a branch of administrative law and public law to a truly autonomous branch of law, with special features. It regulates the tax relations between private individuals and public finance, taken as contributors.

Justification of State Financial Activity

Reasons to organize certain public services:

• Continuity in the satisfaction of social interest.
• Uniformity: social needs of interest to the community should be satisfied with a harmonic approach.
• To assure citizens that the service will operate according to its nature and provide utility.
• Economic: preventing the public service from becoming a source of plunder for private parties.
• Give assurance that the service will be equal for all, except for the natural existence of certain privileged categories.
• Provide assurance of public convenience. The provision of public services is not the only activity of the state, but it is the most important.

Causes of Increased State Activity

• The State has been steadily increasing due to the following causes:
• The increasing number of collective needs, due to the increased volume of human coexistence.
• Increased importance of existing community needs. When social nuclei develop, not only does the number of their needs increase, but existing ones become more serious and require more attention.
• Increase in the number of collective needs that must be satisfied by the state. As political thought evolves, the state is responsible for meeting collective needs that had been reserved for private initiative.
• Increased state intervention in private matters due to the transformation of political thought in modern society.

Similarity Between Public and Private Economy

• In both, there is an interdependent relationship between income and expenditure, where the greatest value should be obtained from the investment made.
• The interdependence between the two should be determined at the same time.
• Treasury: The set of assets that a public entity (federal, state, municipal) has at any given time to carry out its contributions, as well as the debts that are responsible for the same purpose. The public sector or the public economy includes the intervention of public authority in a market economy, primarily through income and expenditure.
• Fisco: The state considered the holder of public finance and therefore has the right to enforce existing benefits on its behalf and the obligation to cover its charges. Fisco, derived from the Latin fiscus, designated the Treasury or equity of the emperors to differentiate it from the public treasury or flows for state obligations.
• Public Revenues: State revenues are classified into two groups: ordinary and extraordinary.
• Ordinary Revenues: Those that are perceived regularly, repeating each fiscal year, and a well-established budget should cover all recurrent costs.
• Special Revenues: Those that are seen only when unusual circumstances place the State against unforeseen needs that require extraordinary expenditures, such as in cases of war, epidemic, natural disaster, deficit, etc.

The Finance Act for the City, from December 31, 1941, states in Article 3: “Revenue Department [Government] of the City are divided into two classes: ordinary and extraordinary.”

Revenues are:

1. Taxes
2. Fees

The two groups are called revenue derived from public law because they involve the exercise of sovereign power.

3. Products, also called income originating from equity or private law.
4. Developments.

Article 1 of the Tax Code of the Federation of December 30, 1938, refers to these four types of income with the ordinary character, which he said will be those that should be mentioned in Annual Revenue laws. These laws each year, in Article 1, also point to these four groups, which therefore have a regular character.

Article 1 of the Tax Code of the Federation of December 30, 1966, says: “Taxes and duties are governed by the provisions listed in respective tax laws, failing that by this code and additionally by common law.”

The products are governed by the provisions stated or by respective contracts or concessions.

The Law of Federal Income for the year 1986 mentions the following revenues: taxes, social security contributions, contributions of improvements, fees, taxes not included in previous fractions, caused in prior fiscal years, pending settlement or payment, accessories, products, development, financing revenues, and other revenues.

Extraordinary Income

Extraordinary rights, contributions, loans, issuing currency, expropriation, personal services, and revenue for reconstruction items.

Loan

A financial transaction credit by firms or the state by issuing registered securities or bearer, and placed in domestic and foreign markets as a way to capture resources.

Tax History

The earliest systems of contemporary tax systems are found in the census, rights, and easements perceived in the Middle Ages. These have somehow survived to this day with the changes and transformations that the progress of the science of finance and economic needs of the states have imposed. A large number of existing taxes were in germ in the performance demanded by feudal lords. We will make a brief analysis of the tax situation in the Middle Ages to note the historical origins of certain contemporary liens, such as customs duties, which affect consumption, the tax on landed property, and even the income tax. The appearance of income tax is dated to 1789 when in England, in the Middle Ages, a fifth, sixth, or tenth of the produce of the land or the income or capital goods in infant industries was required.

Economic and Political Organization

To properly understand the nature of the charges in the Middle Ages, we need to make a brief presentation on the economic and political organization. The imperial crown was transmitted to his son, Louis the Pious, in the 5th century AD. Since then, the dismemberment of the empire occurred while an enhancement of the power of great lords. The king came to be just one more noble, sometimes with less authority than the counts. Even when they acknowledged their higher-level theory, in reality, they denied his authority. A descendant of Charlemagne died in prison of Count Vermandois. At the same time, from the 5th century, there was a gradual disappearance of trade and large cities, which caused a change in the economy to a rudimentary rural economy. This economy only intended to produce the field necessary for the use and consumption of its inhabitants. There were no cities that provide or merchants who carry goods from one region to another. In the 11th century, Europe was divided into large tracts of land, subject to the dominion of a great lord theoretically linked to the king but acting independently of him and even confronting him. Beside these large domains appeared some small properties called Alodia, which belonged to his own absolute property. Both lords and vassals were working their land by Alden, which in turn were divided into two categories: ingenuiles or free men, who could not be subjected to menial work, and servants who did the work. They were successors of vile slaves of antiquity. A chain was formed that began and ended with Mr. the servants. All of this adds confusion to these relationships, so only in a general way can we speak of the benefits they had an obligation to pay.

Other General Economic Obligations

To pay royalties in kind or money for acts performed, such as peasants cooking their bread, grinding wheat, treading grapes, all in properties of the lord. Also, earning stately sea fishing and cutting firewood for forests. Other sources of income were the penalties for crimes and appearing before courts.

Other Personal Obligations

Among personal obligations, the villagers had to cultivate their own land for the Lord, take care of their vineyards, harvest their wheat, store their crops, and fix the number of working days to be directed. They should attend with their arms only or also animals and tools.

Definition of the Tax Code of the Federal Tax

Of December 30, 1938, in Article 2, defined the tax in the following terms: “Taxes are benefits in cash or in kind, the State unilaterally sets and binds all those individuals whose situation matches the event as the law says tax credit generator.”

The Tax, the Definition Says, is a Provision

The law intended to oppose this word as the concept of tax provision to the concept of law in consideration and mean, basically, that a change in the amount particularly delivered to the state for taxes will not receive anything concrete. Jeze says: “The provision of an individual is not followed by a consideration of the State.” That is, the special economic contribution to your state is without immediate utilitarian purpose. The trader who pays income does not receive any thing or service for this payment.

The State Sets

That is required to pay the tax has an immediate source as the will of the State, not arising from the existence of a social contract, nor is it derived from natural laws in excess of the same State. The tax is derived from the will of the State, by express law.

The Supreme Court of Justice of the Nation in Various Implementing Said the Following

Payment of taxes is a debit that is the result of a political necessity and not sanctioned by contract civil law. For the collection of a tax, it is required to have a law that sets it.

Taxes are not established by a higher right but a contribution to the charges based on social life. The definition of taxes keeps saying: “To provide that the State unilaterally fixes.” That is, it is not necessary to establish a tax on the subject prior to their agreement, and expression of your agreement or approval. The State does it through their bodies, constitutional authority under its power, its authority, its sovereignty as the classical school would say. This power is not arbitrary because it is limited by a party for the financial needs of the State from the powers that you have and otherwise conferred by the ability to those affected by the tax.

And Mandatory

That is, no looks will cooperate or not a particular expense of the State. It is the State, unilaterally, which imposes the obligation to do so and may, therefore, use the necessary coercion to meet you constrained to its obligation.

Jeze says no tax payment is essentially a force. “The Supreme Court of Justice of the Nation said no tax benefit constitutes a cause, but a duty to contribute to the public expenditure.”

For this reason, the State may obtain payment of tax credit through economic faculty-coercive, or may establish penalties for which fails its obligation to retain serious things, chasing, obligate a third party to provide information required tax control, requires the cooperation of public officials and the public to have faith.

All these measures the State takes to coerce an individual, constitute no violence in a legal sense of the word because with that seeks an end enforcement is right, that is that the particular performance a legal obligation.

Before the Court Federation Prosecutor is Raised the Question

Article 14 of the Law of the Income Tax of March 18, 1925, as amended by Decree of August 30, 1937, stated that subject to income tax in Schedule I, those goods to send overseas territory, with the obligation to make the referral of an advance payment of 3% of the amount of the operation, and the last paragraph stated that the Customs would not give effect to the matter if not met the requirements specified in this regard.

Elements of Tax

Subject

Classification of subjects: Assets and Liabilities

The first element involved in a tributary relationship is the subject. Tax in any relationship involves two subjects: an active subject and a taxpayer.

Within the organization of the Mexican State as subjects are: the Federation, local authorities, and municipalities.

Active Subject

They are active agents in the tax ratio because it has the right to demand payment of taxes, but this right does not take all the same amplitude. The Federation and local authorities, subject to certain constitutional limitations, can set taxes as are necessary to meet their budgets. In contrast, the municipalities cannot set the tax but are set by state legislatures and the City only has authority to collect. The Federation and local entities have full sovereignty, the municipalities are subordinate tax sovereignty.

Debtor

The taxpayer is the person legally obligated to pay the tax. Article 20 of the tax code says: “Subject or obligor of a tax credit is the person or entity that is required in a direct payment of a specific provision of the Federal Treasury.”

A Mexican or foreigner is obliged to pay a benefit when the Treasury Federal Treasury is legally possible to require the payment of the benefit due.

Other Elements of Tax

Fees: The amount in cash or in kind that is perceived by tax unit, calling the tax rate when expressed as both percent. Fees may be of the following types:

• Spillage or contingency: It sets the amount sought as a return of the tax, then decreases between subjects and finally calculates the fee for each tax entity.
• Fixed fee: When the law states the exact amount to be paid by tax unit.
• Proportional fee: Percent indicated somewhat fixed, regardless of the value of the base.
• Progressive Fee: There are two classes, the fee is indirectly proportional and the rate of growth is subject to the tax’s taxable. The direct when both percent of the share increases with increasing the value of the base.
• Degressive Fees: Are states in which certain quota for a certain tax base, which intends to exercise the maximum tax rate is proportional, under this basis dwindling quotas apply, as the base value decreases.
• Progressive Fee reverse or vice versa: The higher the base, the lower the percent both.

Sources of Tax

These are the goods or wealth which brings the amount needed to pay the tax. There are two sources: capital and income.

• Individual capital is the set of assets of a person, capable of producing an income. National Capital is the set of goods from one country, dedicated to production.
• Rent consists mainly of the income, in cash or in kind, arising out of personal assets or activities of the taxpayer, or a combination of both, as the exercise of a profession.
• Gross income is one that is considered without any deduction. Net income is one in which the expenses are deducted requires the production of that income.
• Free income is left after deducting the individual, not just the cost of obtaining income, but also loads of all kinds that can pass over it.
• Legal rent is that you get to deduct only the total income of the expenses authorized by law.

By taxing the income can be classified as unearned income based and founded.

The first are those that derive from the capital, the latter arising from the work without regular taxable income base patrimonial. The regular, permanent source or may be occasional and not permanent source.