Taxpayer Responsibilities and Inspection Procedures

Taxpayer Responsibilities

Defining Responsible Parties

Responsible parties are individuals or entities designated to manage tax matters alongside primary debtors. They are determined by legal standards and are not directly liable but act as intermediaries.

Types of Responsibility

• Joint and Several Liability: All responsible parties share equal liability for the tax debt.
• Subsidiary Liability: This applies when the primary debtor fails to fulfill their tax obligations. The tax administration must follow a specific procedure:

Subsidiary Liability Procedure

1. Declaration of Insolvency: The tax administration declares the primary debtor insolvent.
2. Derivation of Responsibility: A formal act transferring responsibility to the subsidiary party is issued after a hearing.
3. Liability Challenge: The subsidiary party can challenge the liquidation of the tax debt.
4. Payment and Recourse: Upon payment, the subsidiary party can pursue legal action against the primary debtor to recover the expenses.

Tax Inspection Procedure

General Standards

The inspection procedure aims to verify tax compliance, investigate potential discrepancies, and rectify the taxpayer's situation through assessments.

Initiation and Development

Inspections are initiated either by the tax authority (ex officio) or upon the taxpayer's request. Taxpayers have the right to be informed about the nature, scope, rights, and obligations related to the inspection.

Inspection Period

Inspections should be completed within 12 months, with a possible 12-month extension for complex cases or if the taxpayer has obstructed the process. This period does not interrupt the statute of limitations for tax debts.

Completion of Inspections

Inspections conclude when sufficient evidence is gathered. The process culminates in a settlement act.

Types of Acts

• Minutes to Agree: Used in complex cases involving indeterminate legal concepts or estimations.
• Act of Compliance: Issued when the taxpayer agrees with the proposed adjustments.
• Act of Dissent: Issued when the taxpayer disagrees with the proposed adjustments or refuses to sign the agreement.