Título IV Capítulo III. Determinacion de la obligacion tributaria

The determination of the tax obligation is the act by which the passive subject or the Tax Administration, as applicable in accordance with the law, or both in a coordinated manner, declare the existence of the tax obligation, calculate the tax base and its amount, or declare the non-existence, exemption or unenforceability thereof.

Once the tax obligation has been determined, the taxpayer or responsible party shall comply with it without the need for a requirement by the Administration.

The taxpayer or responsible party may, under its absolute responsibility, submit electronic forms or by any other means established in this Code, for which it may engage the services of a Public Accountant and Auditor or an Expert Accountant. The Tax Administration shall establish the procedures and conditions for the taxpayer or responsible party to authorize the Public Accountant and Auditor or the Expert Accountant.

The determination shall be effected in accordance with the returns that the taxpayers or the liable persons, as applicable, must file, under the conditions established by law.

The Tax Administration may authorize passive subjects to file the returns, financial statements, their annexes or any information that they are required to provide in accordance with the law, by electronic means or on media other than paper, which can be read using electronic devices.

Such media shall comply with the following requirements:

1.That it identify, through an electronic key, the passive subject of the tax obligation. Such key shall be understood as the electronic access key or other means equivalent to a handwritten signature, which attest to who the author is. The Tax Administration shall provide to each passive subject who requests it a distinct access key, which only he must know and use. The use of this key shall bind the passive subject to the document and shall make him liable for its content.

2.That they ensure the integrity of the information, so that no subsequent alteration may be made to the data set forth in the return, annex or information filed.

3.That the Tax Administration deliver to the passive subject a record of receipt of the return, annex or information, in physical or electronic form.

The Tax Administration shall establish the procedures and formalities to be followed for the filing of returns, financial statements, annexes and information on paper, by electronic means or by other means other than paper, ensuring compliance with the requirements listed above.

Returns, financial statements, annexes and information that under specific tax laws must be filed under oath may also be filed by electronic means, or on other means other than paper, using the electronic access key authorized for the taxpayer.

The printout on paper made by the Tax Administration, duly certified, of the returns, annexes and information filed on paper, by electronic means or on media other than paper, shall be deemed authentic and of full evidentiary value, save evidence to the contrary.

When filing returns by any of the means established by this Code, other than paper, the Tax Administration may establish that the annexes or paper supporting documents that by legal or regulatory provision must accompany the returns, remain in the possession of the passive subjects of the tax obligation, for the legally established time limit and must be exhibited or filed upon request of the Tax Administration.

The taxpayer or liable person who has omitted his return or wishes to correct it may file it or rectify it, provided that it is filed before being notified of the hearing. Once the taxpayer has been notified of the hearing, he may not file a return or rectify it for the periods and taxes to which the hearing refers, and if he does so, it shall have no legal validity.

When as a consequence of the late return or of the rectification payment of tax results, he shall enjoy a fifty percent (50%) rebate of interest and a sanction for default reduced by eighty-five percent (85%), provided that he makes the payment together with the return or rectification.

Rectifications to any of the returns filed with the Tax Administration shall have as a consequence the commencement of the computation for purposes of the limitation period.

In cases in which the taxpayer or the liable party omits the filing of the return or does not provide the information necessary to establish the tax obligation, the Tax Administration shall determine on its own initiative the taxes which by law it is responsible for administering.

*Prior to the determination on its own initiative, the Tax Administration shall require the filing of the omitted returns, setting for such purpose a time limit of ten (10) working days. If upon expiration of this time limit the taxpayer or the liable party fails to submit the required returns or information, the Tax Administration shall formulate the determination on its own initiative of the tax on a certain or presumptive basis in accordance with this Code, as well as that of the applicable sanctions and interest. It shall thereafter proceed in accordance with the provisions of Articles 145 and 146 of this Code.

Upon expiry of the time limit referred to in the preceding article, without the taxpayer or liable person complying with the filing of the returns or providing the required information, the Administration shall carry out on its own initiative the determination of the obligation, taking as a basis the books, records and accounting documentation of the taxpayer, as well as any relevant information gathered from third parties. Evidence to the contrary shall be admitted against this determination and all remedies provided for in this Code shall be available.

In cases of refusal by the taxpayers or liable persons to provide information, documentation, books and accounting records, the Tax Administration shall determine the obligation on a presumed basis.

For such purpose it may take as indicia the averages for prior periods, declared by the same taxpayer and relating to the corresponding tax, as well as the relevant information it obtains from third parties related to its activity.

Likewise, it may use averages or percentages of income or sales, expenditures or costs, profits applicable in the scale or category corresponding to the activity engaged in by the taxpayer or liable person in default in the declarations or information.

The determination made in this manner must be the direct, precise, logical and duly reasoned consequence of the indicia taken into account.

Against the determination on its own initiative on presumed basis, evidence to the contrary shall be admitted and the remedies provided for in this Code shall lie.

In the case of determination on a presumptive basis, the liability of the passive subject derived from a subsequent determination on a certain basis shall subsist, provided that the latter is made only once and within the following year, counted from the date on which the determination on a presumptive basis was made.

When the passive subject of the tax obligation has committed an error of calculation and not of concept, from which a difference results in favor of the Tax Administration, the latter shall require him to pay the amount owed, granting him a hearing for five (5) working days. Upon expiration of the hearing time limit, payment shall be made immediately and without further proceedings within the non-extendable time limit of five (5) days.

If the difference is in favor of the taxpayer, the Tax Administration shall notify it to the appropriate party and shall proceed to credit it to an account or to request the Ministry of Public Finance to make effective the refund of such difference, if the respective decision is not challenged.

The refund shall be made on its own initiative and, failing that, at the request of the passive subject, within the time limit of thirty (30) days.