Judicial Proceedings in Tax Law: Venezuela’s Legal Framework

Posted on Nov 20, 2024 in Law & Jurisprudence

Title VI: Judicial Proceedings

Chapter I: Tax Appeal Litigation

Section One: Filing and Admission of Application

Article 259 – The contentious tax appeal shall be admissible:

Against acts of particular effects that can be challenged through administrative appeal, without prior exercise of this resource.
Against acts referred to in the previous paragraph, when the administrative appeal was denied implicitly under Article 255 of this Code.
Against decisions that wholly or partially deny the administrative appeal in cases of acts of special effects.

Paragraph One: The contentious tax subsidiary may also exercise the administrative appeal in the same letter, in case of total or partial, express or tacit rejection.

Paragraph Two: There shall be no action under this article:

Against acts issued by the competent authority in a mutual agreement procedure provided in a treaty to avoid double taxation.
Against acts issued by foreign authorities to determine taxes and accessories, whose collection is requested from the Republic, in accordance with international treaties.

In other cases expressly mentioned in this Code or in law.

Article 260 – An appeal expressing the reasons of fact and law on which it is based must meet the requirements set in Article 340 of the Code of Civil Procedure. The application shall be accompanied by the document(s) of the contested act, except in cases of administrative silence.

The error in the rating of appeal shall not prevent the conduct, provided the notice and procedural records show its true character.

Article 261 – The time to appeal shall be twenty-five (25) working days from notification of the contested act or the expiration of the period to decide the administrative appeal, if tacitly rejected.

Article 262 – An appeal may be brought directly before the competent court or a court with territorial jurisdiction in the appellant’s tax domicile. It may also be filed with the Tax Administration office that issued the act.

When the resource has not been brought before the competent court, the judge or official receiver should refer it to the court within five (5) days. The applicant may request the competent court to send the appeal.

Article 263 – The appeal does not suspend the effects of the contested act. However, ex parte, the court may suspend part or all of the effects if their execution would cause serious harm or if the challenge is based upon the appearance of good law. The decision to agree or deny suspension shall be appealable, solely for execution purposes.

The partial suspension of the effects does not prevent the tax required to pay the portion not suspended or challenged.

First Paragraph: If suspension is sought in court and is pending decision or denied, the tax required shall be paid using the procedure under Chapter II of Title VI of this Code, but the auction of seized goods shall be suspended if the act is not final. Perishable goods shall be handled as provided in Article 538 of the Code of Civil Procedure.

In exceptional cases, the tax authorities or the applicant may request the Court to replace the embargo with other measures or guarantees.

Second Paragraph: The Court’s decision to agree or deny suspension does not prejudge the merits of the dispute.

Paragraph Three: For the purposes of this Article, Article 547 of the Code of Civil Procedure shall not apply.

Article 264 – The appellant is considered right from the time of filing the appeal. In cases of subsidiary interposition or as provided in Article 262, the Court shall notify the appellant at their home or place of business. If notification is impossible, the court shall record this and post a sign on the court door, giving a ten (10) day release term, after which the appellant is entitled.

Paragraph: When the contentious tax has not been filed as provided in paragraph one of Article 259, the Court shall notify the Tax Administration office, including the appellant’s name, the act(s) whose revocation is sought, the issuing body, the matter in question, and request the administrative record.

Article 265 – The request shall be extinguished by the lapse of one (1) year without any procedural act. The judge’s inactivity, after hearing the cause, does not result in lapsing.

Article 266 – Grounds of inadmissibility:

Expiration of the appeal time limit.
Lack of quality or interest of the appellant.
Illegitimacy of the person presenting as trustee or representative of the appellant, lacking capacity to stand trial or proper representation, or if the power is not legally given or is insufficient.

Article 267 – On the fifth day following the last notification, the Court will rule on admissibility. Within this period, the fiscal representative may oppose the appeal’s admission.

In the latter case, a joint probation will not exceed four (4) days, where parties will promote and dispose of evidence. The Court shall rule within three (3) days following the period’s expiration.

Paragraph: The admission of the appeal may be appealed within five (5) days following dispatch, provided the tax authorities made opposition, and will be heard solely for execution. If the court does not admit the appeal, it will hear an appeal in both, to be decided within thirty (30) consecutive days.

In both cases, parties shall submit reports within ten (10) days of receiving firm orders for the appeal.

Article 268 – Upon expiration of the period for appealing the decisions in the preceding article, or from the return of the Court of Appeals allowing the appeal, the trial will be open to evidence, unless parties request to decide the case as a mere law or only on evidence, in which case the judge shall declare.

Section Two: Probationary Period

Article 269 – In the first ten (10) days following the opening of the probationary period, parties may promote the testing they want to avail.

All evidence shall be admissible, except the oath and confession of public officials when they involve the religious test of the Administration. Evidence will not be promoted if manifestly illegal or irrelevant.

Paragraph: The Tax Administration and the taxpayer should note, however, accompany the information provided by an independent third party that affects or may affect its competitive position, unless requested by the judge.

Article 270 – Within three (3) days following the promotional period’s expiration, parties may oppose the admission of evidence if manifestly illegal or irrelevant. The judge, within three (3) days following the written test, shall admit legal and appropriate evidence, discarding the manifestly illegal or irrelevant.

Paragraph: Whether there has been opposition or not, the refusal of admission tests may be appealed within five (5) days following dispatch. In both cases, the appeal is heard solely for execution.

Article 271 – Admitted evidence under the preceding articles will open within twenty (20) days for evacuation of the tests, but if a commission is given by another court, compute as provided by Article 400 of the Code of Civil Procedure.

Article 272 – The court may commission the practice of any proceedings to inferior courts, even if they reside in the same place, for which the exemptions in Article 234 of the Code of Civil Procedure are not provided.

Article 273 – For promotion, removal, and assessment of evidence, judges will rule according to the Code of Civil Procedure, Civil Code, and other laws of the Republic.

Section Three: Reports and Better Provision

Article 274 – On the fifteenth day following the probationary period’s expiration, parties shall submit reports during court hours.

Article 275 – Each party may submit written comments on the opposing party’s reports within eight (8) days following delivery, during court hours, provided they submitted their reports.

Paragraph: The court, where warranted, may provide that reports and comments are presented briefly and orally.

Article 276 – Within fifteen (15) days following dispatch, the court may issue an order to better provide, in accordance with Article 514 of the Code of Civil Procedure.

Paragraph: The evacuation of evidence in the car agreed to provide shall not exceed fifteen (15) days of shipment.

Section Four: Case

Article 277 .- Presented reports, or compliment is the best car to provide, or past the period allowed for compliance, the court shall issue its decision within sixty (60) continuous days, and may differ by one time for serious reasons on which the judge shall make statement in the self-deferral, and for a period not to exceed thirty (30) consecutive days.

Paragraph One: Should the sentencing court within this period, it shall be left entirely within the purposes of the appeal. Sentencing judges seek the causes in order of seniority.

The ruling outside the period established in this article or its deferral must be notified to the parties, otherwise it will not run the time for filing the appeal.

Second Paragraph: sentencing outside the periods set forth in this Article, the period for filing an appeal begins to run once the record shows the last of the notifications.

Article 278 .- In the final judgments of the Court of the cause, or cause irreparable interlocutory, may be appealed within the period of eight (8) days of release, numbered as provided in the preceding article.

In the case of the determination of taxes or the application of financial penalties, this resource will proceed only when the value of the case exceed one hundred tax units (100 UT) for individuals and five hundred tax units (500 UT) for legal persons.

Article 279 .- The procedure in the second instance will be provided for in the law governing the Supreme Court.

Section Five: The execution of the sentence

Article 280 .- The execution of the sentence correspond to the Tax Dispute Court who has known the case at first instance, once the sentence has been finally sign, past the authority of res judicata. In this case, the Court at the request of the interested party, shall order his execution.

Declared out or partially exercised the appeal, the court set in the decree a period of not less than three (3) days of release and no more than ten (10), the losing party to make voluntary compliance, and can not begin enforcement until you have fully passed the period.

In order to stay the execution, will continue as provided in Article 525 of the Code of Civil Procedure.

Paragraph: In cases where they obtain goods seized under the provisions of Article 263 and prove themselves sufficient to satisfy the tax credit, is immediately to the auction of these assets as stipulated in Articles 284 and following of this Code.

Article 281 .- After the period established in the previous article without would voluntarily comply with the sentence, proceed to forced execution. In this occasion, the representative of the Treasury request, and the court so decide, the executive but on real property of the debtor not exceeding twice the amount of execution, plus a sufficient amount prudently estimated by the court to answer the payment of interest and costs of prosecution. If the seizure is made on cash, will be limited to the amount of demand over the estimated interest and costs.

In the event that the debtor’s assets are such that they are unable to make such assessments, lien any of them, even if their value exceeds the transaction in this article.

Article 282 .- The debtor, in the period granted for voluntary compliance, can do to stop the execution convincingly shown to have paid the tax credit, for which purpose it must provide document check.

You can also claim the tax credit extinction according to the mass extinction under this Code.

Paragraph: In these cases, it will open a full articulation of proof may not exceed four (4) days of release, for the parties to promote and dispose of the evidence they deem appropriate. In any case, the court resolved the next day of release time granted.

The ruling that upheld the objection raised subject to appeal in both, and to declare without appeal shall lie as a single effect. The decision to resolve any of the cases mentioned in this article shall not prevent the seizure of goods, but shall not proceed to the auction of these until the second instance to resolve the issue.

Article 283 .- Ordained however, the judge appointed to the Treasury as a depository of the goods, when the representative of the latter so requests.

Article 284 .- Upon expiration of the period for voluntary compliance, or determined the incidence of opposition by the height without the debtor has credited the payment, order the auction of the seized property, which will be followed by the Rules of Procedure Code Civil.

The poster auction formalities will be followed by the provision in Article 286 of this Code.

Article 285 .- The Court shall appoint a single expert appraiser in order to make the appraisement of the property seized. The expert appraiser shall present its conclusions in writing to a deadline set by the court, and shall not exceed fifteen (15) days from the date of dispatch of the date of acceptance.

Either party may challenge the appraisal, in which case proceed to the appointment of experts under the rules of the Code of Civil Procedure.

Article 286 .- recorded the results of the appraisal, shall, within ten (10) days of release following the publication of a single poster auction in one of the largest newspapers in the city courthouse.

This poster should contain:

1. Identification of the performer and executed.

2. Nature and identification of the goods to the auction.

3. Certification of charges in the case of real estate.

4. The fair price of the goods.

5. Minimum basis for the acceptance of positions, which shall not be less than half of fair compensation, in the case of real estate.

6. Place, date and time the auction is to be performed.

Copies of the poster should be attached to the doors of the Court.

Article 287 .- Having fulfilled the formalities set forth above, shall on the date, place and time, the sale of the property at public auction by the judge or other competent judicial officer.

Article 288 .- If the tax credit is covered and accessories, the representative of the Treasury may request the court to decree the additional liens to cover all the same

Title VI: Judicial Proceedings

Chapter II: Executive Judgement

Article 289 .- The administrative acts happy liquidated obligations in favor of the Treasury by way of taxes, penalties and interest, and the orders made pursuant to paragraph one of Article 213 of this Code, shall be enforceable and legal collection garnishment shall prepare, following the procedure laid down in this Chapter.

Article 290 .- The procedure begins by letter in which he expressed the identification of the Treasury, the defendant, the capacity in which it operates, subject to demand, and the reasons of fact and law on which it is based.

Article 291 .- The application for enforcement of the claim must be filed in the Tax Dispute Court jurisdiction.

In the same demand prompted the Treasury representative, and the Court shall agree, the embargo executive debtor’s property not exceeding twice the amount of execution, plus a sufficient amount estimated by the Court prudently to meet the payment of interest and costs of the process. If the seizure is made on cash, will be limited to the amount of demand over the estimated interest and costs.

Paragraph: In those cases where litigation has commenced the tax and not have suspended the effects of the act, the application shall be made before the same court that is considering one.

Article 292 .- Ordained however, the judge appointed to the Treasury as a depository of the goods, when the representative of the latter so requests.

Article 293 .- Any third party claiming to be preferred to pretend you are the plaintiff or his property seized, proposed action before the Court, which will copy to the parties and the dispute shall be dealt with according to its nature and amount, in accordance with the provisions of the Code of Civil Procedure relating to third party.

Article 294 .- Admitted demand, the notice of the debtor agreed to pay or have paid check, warning of execution, and within five (5) days from the date of intimation.

The debtor, in the time allowed to pay or have paid check, you can do to stop the execution convincingly shown to have paid the tax credit, for which purpose it must provide document check.

You can also claim the tax credit extinction according to the mass extinction under this Code.

Paragraph: In case of opposition, it will open a full articulation of proof may not exceed four (4) days of release, for the parties to promote and dispose of the evidence they deem appropriate. In any case, the Court resolved the next day of release.

Article 295 .- Upon expiration of the period stipulated in the header of the previous article, or determined the incidence of opposition by the height without the debtor has credited the payment, apply the provisions of Articles 284 and following of the Code, but the auction goods will be suspended if the act has not been finally firm. For these purposes, shall not apply to Article 547 of the Code of Civil Procedure.

Title VI: Judicial Proceedings

Chapter IV: Tax Amparo

Article 302 .- shall be grounds for action under the Tax Administration tax when incurring excessive delays in meeting requests from stakeholders, and they cause damage not repaired by the means set forth in this Code or special laws.

Article 303 .- The action may be brought by any person affected by an application lodged before the competent Court.

The demand shall specify the steps taken and the damage caused by the delay. With the application shall be made by written copy of which has urged the process.

Article 304 .- If the stock breaks out on reasonable grounds, the court will require reports on the cause of the delay and set a term for the answer no less than three (3) days of release nor more than five (5), starting from the date of notification. Upon expiration of the period, the court shall issue an appropriate decision within five (5) days following dispatch. It set a term to the Tax Administration to rule on the act omitted. The court may, if the case so warrants, to replace the administrative decision prior fiscal consolidation interest compromised. The bonds will be issued as provided in Article 72 of this Code.

In the decision rendered in the appeal will be heard just returned effect, within ten (10) days following dispatch

Chapter V: Judicial Settlement

Article 305 .- The parties may terminate the transaction by pending court held, in accordance with the provisions of this Chapter. The transaction must be approved by the competent court for the purpose of execution.

Article 306 .- The transaction between the parties the same force as res judicata.

Article 307 .- The transaction must be requested by the appellant before the act of reporting and writing that entered by the trial court, stating the grounds for his request.

Upon receiving the letter the court shall proceed by order in which order to notify the Tax Administration. Once notified it will be suspended due for a period of ninety (90) consecutive days, in order that the parties discuss the terms of the transaction.

The parties by agreement may request an extension, which shall not exceed thirty (30) consecutive days.

Article 308 .- The Tax Administration, within thirty (30) calendar days following the day on which notification is received by the Court, shall be the case file, which will send the same date the Attorney General’s Office , together with its opinion on the terms it considers appropriate in the transaction.

Without further delay, when the Tax totally inappropriate to consider the proposed transaction, notify the court within that period, prompting the continuation of the trial in the state is

Article 309 .- The Attorney General’s Office, within thirty (30) calendar days of receipt of the dossier, issued non-binding opinion on the proposed transaction. The lack of opinion from the Attorney General’s Office within that period will be deemed acceptance to carry out the transaction.

Paragraph: Not The opinion of the Attorney General’s Office when the matter referred to it not exceeding one thousand tax units (1,000 TU) in the case of individuals and five thousand tax units (5,000 TU) if trafficking law.

Article 310 .- If the tax authorities consider it appropriate to the proposed transaction, draft the relevant agreement and shall notify the applicant within five (5) working days of receipt of the opinion of the Attorney General’s Office, or at maturity the period provided for in the preceding article.

The applicant shall respond to the Tax Administration within five (5) working days, if you elect the release agreement or rejects it.

In the event that the agreement was not accepted by the applicant, the court continued the trial in the state where you are.

Article 311 .- The tax, together with the person, sign the settlement agreement, which once approved by the court will order the trial

Title II: Tax Liability

Chapter VI: The Prescription

Article 55 .- shall lapse four (4) years following rights and actions:

1. The right to verify, inspect and determine the tax liability and their accessories.

2. The action to impose tax penalties, other than the penalties that restrict freedom.

3. The right to the recovery of taxes and the return of improper payments.

Article 56 .- In the cases mentioned in paragraphs 1 and 2 of the previous article, the prescribed period will be extended to six (6) years when they do any of the following circumstances:

1. The taxpayer does not comply with the obligation to report the taxable or filing tax returns that are required.

2. The taxpayer or third parties do not comply with the obligation to register with control to set the tax effects.

3. The Tax Administration has not learned of the taxable event, in the case of verification, control and liability assessment.

4. The taxpayer has taken the country the property subject to payment of the tax obligation, or in the case of taxable events related to acts or assets located abroad.

5. The taxpayer does not keep accounts, not held for the statutory deadline or get double counting.

Bolivarian Constitution of Venezuela

Article 27. Everyone has the right to be protected by the courts in the enjoyment and exercise of constitutional rights and guarantees, even those belonging to the person and not expressly provided in this Constitution or in international instruments on human rights.

The procedure of amparo is oral, public, brief, free and unencumbered by formalities, and the competent judge shall have power to restore immediately the juridical situation or the situation that is closest to it. All time shall be processed and the court in preference to any other matter.

The action of the protection of liberty or security may be filed by anyone, and the arrested or detained shall be placed in the custody of the court immediately, without delay.

The exercise of this right may not be affected in any way by declaring a state of exception or restriction of constitutional guarantees.

Article 51. Everyone has the right to petition or make representations before any authority, public official or public servant on matters within their competence, and to obtain timely and adequate response. Whoever violates this law shall be punishable under the law, and may be removed from office.

LOPA

Article 4. In cases where an organ of public administration fail to resolve an issue or resource in the corresponding periods, be deemed to have adversely determined and the individual may seek recourse next following, unless expressly provided otherwise. This provision does not relieve the administrative, or its representatives of any liability attributable to it by the omission or delay.