Understanding Administrative Acts and Tax Determinations

Posted on Dec 4, 2024 in Law & Jurisprudence

Administrative Acts

An administrative act is any statement, general or specific, issued by public administration organs in accordance with established legal formalities and requirements.

Hierarchy of Administrative Acts

Administrative acts follow this hierarchy (Article 14 LOPA):

  1. Decrees
  2. Resolutions
  3. Orders
  4. Rulings
  5. Other decisions

Decrees (Article 15)

Decrees are the highest-level decisions issued by the President of the Republic. They are countersigned by relevant ministers or the entire cabinet. The President may require additional ministerial endorsements.

Resolutions (Article 16)

Resolutions are general or specific decisions adopted by Ministers, by Presidential order or specific legal provision. They must be signed by the respective minister(s).

Orders and Rulings (Article 17)

Decisions of the National Public Administration, if not decrees or resolutions, are orders or rulings. They may also be instructions or circulars.

Components of an Administrative Act (Article 18)

All administrative acts must include:

  • Ministry/agency name
  • Issuing body’s name
  • Date and place of issuance
  • Addressee
  • Summary of facts, reasons, and legal basis
  • Decision (if applicable)
  • Signature(s) of official(s), indicating authority and any delegation details
  • Official seal

Original documents must contain original signatures, but frequent acts may use stamped signatures (by decree).

Void Administrative Acts (Article 19 LOPA)

Administrative acts are void if:

  • Expressly declared so by constitutional or legal provision
  • They resolve a finalized case that created private rights (unless legally authorized)
  • Their content is impossible or illegal to execute
  • Issued by manifestly incompetent authorities or ignoring established procedure

Rescission of Administrative Acts (Article 20)

Defective administrative acts not deemed void are rescinded.

Tax Determination

A tax determination comprises acts issued by the tax administration to record a tax obligation.

Methods of Tax Determination (Article 131)

Two automatic determination systems exist:

  1. Certain Basis: Based on elements directly demonstrating taxable events.
  2. Presumptive Basis: Based on facts and circumstances related to the taxable event.

Certain basis uses verifiable elements directly showing tax events, such as gross income, costs, and expenses, to determine the tax base.

Presumptive basis uses facts or circumstances connected to the taxable event to determine its existence and amount.

Self-Determination

Self-determination is the taxpayer’s act of identifying and quantifying their tax liability using a form.

Notification (Articles 161-162)

Notification is required for Tax Administration acts with individual effects (Article 161).

Notification methods include:

  1. Personally, with recipient’s signature.
  2. Written evidence delivered to the taxpayer’s residence or workplace, signed by an adult present.
  3. Postal mail, telegraph, fax, electronic means, with recorded receipt.

Refusal to sign requires a report by the tax officer, with the act incorporated into the file.

Effective Protection Principle (Article 26 CRBV)

Guarantees the right to access judicial bodies for effective protection of rights and interests, including prompt decisions, free access, impartiality, suitability, transparency, autonomy, independence, responsibility, equity, and expeditiousness without undue delay or unnecessary formalities.