Understanding the Objectives and Principles of National Taxation
What are the objectives of the National State relating to Article 3 of the Constitution? Explain.
There are four objectives listed in Article 3:
- Achieving a free society, justice, and solidarity;
- Eradication of poverty and marginalization to reduce social and regional inequalities;
- Encouraging the development of the national state;
- Promoting the good of all without prejudice to race, color, sex, age, or any other form of discrimination.
These goals aim to address the inequality of the human person, facilitating their full development.
- What are the taxes?
Taxes are characterized by the prior determination of their destination. They are created by the union; in particular, a tax cannot be created by any other entity of federation. Other taxes (taxes, levies, tariffs) may be transferred to any other federal entity.
- What defines the creation of a tax?
Two elements make up the creation of a tax:
- Existence of a triggering event (the action which justifies the collection);
- Application of the principle of legality (established by law).
For example, IPVA (Vehicle Property Tax) is generated by possessing a car.
A tax may be levied if the law establishing it is in place.
- What are the sources of law and how are they divided?
Sources are the elements that contribute to the formation of laws. They are the factors that lead to the birth of the legal system. The following are considered sources: habits, customs, language, culture, and the federal constitution.
Secondary sources of norms are produced by executive and legislative powers and those institutionalized by the state.
- What is the validity and effectiveness of a standard? Illustrate.
Validity refers to the time that a standard remains written in a set of laws, while effectiveness refers to how well this policy produces the expected results. Therefore, a standard can be current but not effective, and an effective provision does not necessarily mean it is valid.
- What is competence and transfer?
The interpretation of the tax rule must occur in a literal and narrow manner. As a measure of exception, analogical reasoning and equity may be used whenever there is a need for exceptional understanding. However, these concepts cannot be used for unauthorized charges, increasing or decreasing taxes, or exemption from imputed value.
Transfer refers to the possibility that the union has to transfer to any federal entity the collection, administration, supervision, and implementation of the sums collected.
- What characteristics define competence?
Competence is intended solely for the union’s power to create taxes. Characteristics include:
- Encaducabilidade (the ability to be structured),
- Non-waiver,
- OPTION,
- Inviolability,
- Privacy, and
- Indelegability.
- What is the difference between tax capacity and tax jurisdiction?
Tax capacity is indicated by the federal constitution and state law, pointing out who is able to compose the court for tax (subject to active and passive). Competence refers to the constitutional legal organization that can only be exercised by law, and the legal entity empowered to act is overseen by the legislature.
- Explain physical and extra parafiscal fiscality.
Taxation is the act of administering and collecting the power to impose penalties. Parafiscal refers to the possibility of modifying the active.
This occurs when the administration seeks to change behavior by utilizing a tribute.
- List constitutional principles and cite general and specific tax law principles.
Principles are absolute norms of the constitution that cannot be modified. Structural standards determine the principles, while material standards set the limits of value that drive the standards originating from the beginning. They are mandatory, universal, general, and changeable. The general principles of tax law include fundamental rules such as:
- Legality,
- Publicity,
- Legal defense, and others.
Specific principles are used only in tax law:
- The non-cumulative principle: prohibits double charging on the same taxable event. In case of occurrence, immediate compensation is required.
- The progressiveness principle: determines that the increase in tax can only occur as public service improvements are delivered by the social group, consequently improving the wealth of the individual.
- Conceptualize immunity, exemption, and point out their features.
Immunity refers to the prohibition of collecting taxes determined by the constitution. It applies to certain public bodies, institutions, associations, educational entities, churches, trade unions, and political parties. Immunity is required, may be withdrawn, and is not permanent.
Exemption is the relief from payment of taxes that the state grants to certain groups in specific situations. It is created by law and is institutionalized for a specified period.
- Explain the consequence of failure of ancillary obligations.
The ancillary obligation is established by the act of doing or not doing something in the interest of the taxing entity. Failure to meet this obligation results in a main obligation.
- Explain passive and active subjects.
The taxpayer is the individual who has a direct and personal relationship with the taxable event. In case of default, they are directly responsible for non-payment.
The active subject is the entity authorized to collect taxes, meaning any political entity that has an indirect relationship with the taxed fact.
- What is the relationship between civil capacity and tax capacity?
There is no relationship between the two concepts. Civil capacity refers to the full enjoyment of all rights of the citizen, while tax capacity is linked to the fulfillment of tax obligations, meaning the individual is held responsible for their assets.
- How is the time of emergence characterized as a tax liability?
Responsibility for transfer can occur with the receipt of successors in cases of inheritance and by others when there is interference in the act or action or abuse of power.
- What is spontaneous denunciation? Explain.
Spontaneous denunciation is the information the taxpayer provides to the tax authorities so that they can tax it. This fact exempts the payment of a fine since the tax has not yet taken any punitive measures. The confession of debt and/or the application for subdivision does not constitute spontaneous denunciation.
- Conceptualize and launch tax credit and outstanding debt.
Tax credit is a legal relationship whereby the active subject may require the taxpayer to pay tribute or the penalty imposed as long as it is established in previous law. The launch is the administrative activity linked to the tax credit. Before the launch, there is only an obligation, and it is from it that a credit may arise. The release is the administrative procedure that allows the verification of the occurrence of the generated tax, identifying the amount to be paid and, where applicable, the appropriate penalty.
Tax credits are actively entered once they become certain, liquid, and presumptive. The existence of certificates makes the tax credit liquid, and some liquid credits can only be deconstituted on error management.
- How can we characterize the suspension, execution, prescription, and decadence in the tax credit?
The suspension of the tax credit prevents the IRS from continuing the collection (release). This can occur due to a moratorium, by splitting payments, depositing the full value, complaints, appeals, or any other legal action.
Limitation refers to the loss of the right held by the public administration to collect the amount due in court. This occurs due to the loss of time for judicial action, resources, and embargoes.
Decadence is the term that causes the loss of the duty of public administration to launch (5 years). Generally, the period of decadence is calculated from the first day of the launch but is computed only in the subsequent fiscal year. A special rule is used in the tribute for approval, and in cases where prepayment occurred. The period starts counting from the date determining the taxable event.
- What are the guarantees and privileges of the tax credit?
Guarantees and privileges are means to ensure that the taxpayer pays the tax debt. All of the debtor’s assets are liable for it, up to its limit. The successors inherit this obligation.
- Conceptualize and explain positive attestation with an adverse effect.
A positive certificate with a negative effect has the same effect as a negative certificate, guaranteeing the possibility of credit for the trader. However, this subdivision must be requested and paid at least the first installment.
- Explain excise, showing its effect and ease. Illustrate.
Taxes are solely the jurisdiction of the union and aim to maintain society’s values. They exceed the actual taxable event because they relate to public health, national security, the process of industrialization and its products, privately owned rural income, and the import and export. They aim at the internal and external growth of the state and its individuals.
Examples include withholding tax, income tax (IRPF), and IOF tax on large fortunes.