Under the title “Ideas for a 21st Century Tax Court”, specialists in the area analyzed the role of the National Tax Court (TFN) created 60 years ago.
During the virtual conference, held on Wednesday, July 1, 2020, guidelines were addressed, in the new times, for a jurisdictional court that is within the orbit of the National Executive Branch and whose objective is to issue a ruling on acts issued by the Federal Public Revenue Administration (both the General Tax Directorate and the General Customs Directorate) that do not have the approval of taxpayers, other responsible parties and sanctioned parties.
“The National Tax Court was created in 1959 by Law 15.265 and began operating in 1960. Although it has undergone several changes in its operation, it is worth highlighting the purpose of its creation, which was to circumvent the principle Solve and repeat (prepayment of the sum demanded),” explained Claudio Estaban Luis, guest speaker at the Tax Courts Commission of the Argentine Association of Tax Studies, coordinated by Drs. Pablo Garbarino and Martín González Seoane.
“At that time, the country's tax system and the universe of taxpayers were different from those of today. The Tax Court is an autonomous body. The great challenge is to think about it in terms of the current tax system and the expanded universe of taxpayers. The impact of the tax burden, the importance of tax collection to meet public spending and, fundamentally, technology are different elements today from those that existed at the time of its creation,” explained Luis at the meeting moderated by Pablo Garbarino.
“Today, the great power of oversight that agencies have lies in technology. Let's take Agip as an example; the Autonomous City of Buenos Aires bought a Big Data system to analyze consumption and expenditure parameters and thus outline a consumer profile,” said the Judge of Chamber C of the National Tax Court.
In this context, Luis wondered how an organization like the Tax Court, which has to administer justice, can adapt to the new times. “In this sense, it deserves to jump into the principle of progressiveness where rights must have a line of greater protection, to improve the right of defense and have a policy based on the progress of rights," he said and clarified that "in the case of the TFN, it would be appropriate to expand its jurisdiction by assigning it a strictly judicial function. The last reform to Law 11.683 was contrary to the principle of progressivity."
In addition, Luis referred to the fact that "another step forward would be the creation of Specific Social Security rooms, since it would raise the concept of the TFN, Solve and repeat, for which it was created.”
The judge also commented on the need for a greater speed in the performance of the TFN. “Today an oral process could be proposed, initially for low-value cases. Mexico is beginning to implement the oral process,” he said.
“Another idea is the re-adaptation of the Rules of Procedure of the TFN. Thus, the effort would be directed at making it more dynamic; for example, by streamlining the performance in the rooms," he added.
Along the same lines, Luis pointed to the digitalization and said: “The TFN has had the electronic file at its disposal since May 2019, although the system could be improved. Digitalisation is essential for the Court's operations.”
The 21st century offers more tools to provide services and assistance, to identify tax non-compliance or fraud and to select cases through the use of predictive techniques such as Big Data or others. But, on the other hand, it is also necessary to take greater precautions to guarantee the correct use of information and zero possibilities of leaks.
How to manage a 21st Century Tax Court?
The management of a 21st century Tax Court requires elements such as financing, procedural reform and qualified personnel.
"The financing "This has to do with an internal matter of the Court, which means that, as an autonomous entity within the Ministry of Economy, its budget depends on the annual allocation made to it. In this sense, the TFN also has its own financing instrument, which is the collection of the performance fee. This resource is extremely important to finance its operation," explained the judge.
On the other hand, “the procedural reform established in Law 11.683 and in the agreed TFN 840 allows the extension of the jurisdiction to Social Security, payment notification, modification of the law and the instruction of the file," he explained.
Luis raised the need for the establishment of a own ranking for the Court's staff, in accordance with the function it performs, to avoid the flight of specialized personnel. The members of the Justice body, impartial and independent of the administration, are of high quality.
“The Tribunal is technically specific in its formation. It is the only body called upon to resolve a specific issue of taxpayers. Its human resources are, without a doubt, its essential asset,” he concluded.
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