What is tax law?

The tax law It is a set of rules under which a public authority has a claim on taxpayers that requires them to transfer part of their income or assets to the authority. The power to impose taxes is generally recognized as a right of governments.

The tax law of a nation is generally unique, although there are similarities and common elements in the laws between several countries. In general, it only refers to the legal aspects of taxation, not to its financial, economic or other aspects.

Decision-making on the merits of various types of taxes, the general level of taxes and specific tax rates, for example, do not fall in the domain of tax law. It is a political process, not a legal one.

The main utility of the study of tax matters lies in combat possible abuses that may be committed by the tax authorities. In an effort to collect taxes such as the cost of the most diverse projects, or a possible usurpation of individual wealth.

Even the use of the fiscal area as a tool for political maneuvering. Therefore, through the law, derived from studies of

tax matters, we find the only way to regulate and assign taxes to the various components of the society involved. This necessarily forces the State to make a rational planning of its expenses and income that will finance each and every one of the projects with this subsidy.

Origins of taxes

Taxes have been a important topic of political controversy throughout historyeven before they constituted a considerable part of the national income.

A famous example is the rebellion of the American colonies against Great Britain, when the colonists refused to pay taxes for a Parliament in which they had no voice, hence the motto, 'No taxes without representation". Another instance is the French Revolution of 1789, in which the unequal distribution of the tax burden was an important factor.

Wars have influenced taxes much more that taxes have influenced revolutions. Many taxes, notably the income tax, the turnover tax or the purchase tax, began as "temporary" war measures.

Similarly, the method of withholding income tax collection began as a wartime innovation in France, the United States, and Great Britain. World War II converted the income taxes of many countries from high-class taxes to massive taxes.

Taxes in general represent a much higher percentage of production national in developed countries than in developing countries. In the same way, more national production is channeled towards government use through the taxes in developing countries with higher income levels than in those with lower income levels. income.

In fact, in many respects, the tax systems of developing countries with the highest income levels have more in common with those of developed countries than with the tax systems of developing countries more poor.

The principles that govern tax law

• Principle of legality: each tax must originate in a law that creates it and determines its limits.
• Priority principle: it is established that the entire tax cannot be collected in the same financial year as the publication of the law. The idea behind this principle resides in another higher level principle, the principle of acquired right. However, exceptionally, the tax may retro-act, contrary to this principle, if it does not harm the rights of third parties.
• Principle of isonomy: all taxes created are paid by each taxpayer in a uniform and proportional manner.
• Principle of the right to judicial protection: the guaranteed right of all citizens to seek the judiciary if they feel that their rights in relation to tax matters are impaired.
• Principles of criminal law: this principle refers to criminal tax matters and the classification of crimes that concern it, such as evasion or misappropriation.
• Principle of uniformity: the distinction or preference between the various legal entities of public law in tax matters is prohibited.

Tax power

Limits to the right of the public authority to impose taxes they are established by the power qualified to do so under constitutional law. In a democratic system, this power is the legislature, not the executive or the judiciary.

However, the constitutions of some countries may allow the executive to impose temporary quasi-legislative measures in the event of emergency, and under certain circumstances the executive may be empowered to alter the provisions within the limits established by the legislature.

The tax legality it has been affirmed by constitutional texts in many countries, including the United States, France, Brazil, and Sweden. In Great Britain, which does not have a written constitution, taxes are also a prerogative of the legislature.