TAX LAW - QUESTION BANK – UNICEN I-2018

DR. CRISTHIAN SAAVEDRA R.

1. Under what principles is Tax Law in Bolivia based according to the Political Constitution of the
State?

A.- The principles on which budgetary law is based are:

 LEGALITY: There must be a Law that approves this budget.
 PERIODICITY: Lasts one year.
 UNIT: A single budget that includes expenses and income.
 BALANCE: There must be a relationship between income and expenses
 ADVERTISING: It must be known to all citizens belonging to the State.
 SPECIALTY: The budget is unique in the matter
 PROGRAMMING: POA and budget.
 BALANCE OF DEFICIT AND SUPERHABIT BUDGET : Let us first understand both
concepts:
Deficit : It is the scarcity of some good, be it money, food, or anything else.
Surplus: Abundance of something useful or necessary, refers to all assets, from which
liabilities are subtracted. Leaving a sum equal to the capital with a difference, which if
positive is called SUPERAVIT and if negative is called DEFICIT.
2. What is the purpose of Tax Law and the Tax Code, is there any difference?

A.- Tax Law has as its object the collection of taxes and the study of tax obligations and ancillary
obligations; On the other hand, the Bolivian Tax Code contains a set of general rules that govern
the legal relationships between the Treasury and taxpayers, both in the substantive material order
and in the procedural scope, the interpretation of the subjects of this relationship and their
responsibility in the debt, to the forms of extinction of the obligation. So we could say that one is
the instrument and the other its operating arm.

3. What is the division of Tax Law in Bolivia and explain each of them?

A.- The material or nominated tax Material or Substantive Tax Law: It is a branch of a scientific
and didactic nature, consisting of a set of rules, principles, institutes that regulate the relationship
or legal link that occurs between the State that is the active subject of the tax relationship and the
passive subjects, who are the taxpayers or others according to the tax standard. This includes the
characteristics and elements of the obligation, privileges, guarantees and forms of extinction.
The formal or administrative tax.- This is coincident and complements the material tax law since it
refers to the administration of the tax, the actions it develops, the procedures, scope, control and
supervision that is in place in order to obtain the payment of the tribute.
Tax procedural law. It is a set of rules that regulate disputes between the subjects of the tax legal
relationship or link, for the present case the relationship of ordinary justice involved in taxes
arises, which through administrative and tax litigation processes integrates a series of procedural
acts. in search of satisfying the best right.
Criminal tax law. Set of rules referring to the classification and treatment of tax offenses as well
as the regulation of the corresponding sanctions.
International tax law.- Set of Rules that regulate tax obligations between States, subject to
international laws under doctrinal, jurisprudential and special regulatory aspects that have been
previously signed between States.
Constitutional tax law.- It is the set of rules and principles that are recorded in the Constitution
itself in which the fiscal policy and tax powers between different centers of power such as the
Departments, Municipalities, and Provinces are defined.
4. To which branch of Law does Tax Law belong?
A.- TAX LAW or FISCAL LAW is a branch of Public Law, within financial law.

Public Law is the part of the legal system that regulates the relationships between people and
private entities with the bodies that hold public power.

5. Explain the application of the tax norm in time and space?

A.- Time is understood from the entry into force or determination of the moment in which the tax
regulations become mandatory, there is no doubt, since it is from their promulgation.

Tax regulations are valid in the spatial field subject to the power of the competent body to create
them, financial power derives from the political concept of sovereignty Art.1 to 2 CT

6. From a definition of Tribute, its classification and characteristics?

A.- For Hector Villegas: The monetary benefits that the State demands in the exercise of its
sovereign power by virtue of a law and to cover the expenses required to fulfill its purposes.

Article 9 (Concept and Classification). YO. Taxes are monetary obligations that the State, in the
exercise of its imperial power, imposes in order to obtain resources for the fulfillment of its
purposes.

Characteristics
  Only the law can establish taxes
 Mandatory Tax
 Destination of Taxes

Classification of Taxes

 Taxes,
 fees,
 Special Contributions
 Municipal Patents

7. Give a definition of Tax and what is the legal basis within our legislation?

A.- They are pecuniary benefits that constitute the consideration for a special service, determined
as obligatory by the public entity to obtain income, directed to all those who carry out the acts that
the law links within the duty of payment. Its legal basis is in Art. 10th of CT (Tax). Tax is the tax
whose obligation has as its generating event a situation provided for by Law, independent of any
state activity related to the taxpayer.

8. How is the Rate defined, what is its legal basis?

R.- Article 11° CT (Rate). YO. The rates are taxes whose taxable event consists of the provision
of services or the performance of activities subject to Public Law rules individualized in the
taxable person, when the following two (2) circumstances occur:

1. That said services and activities are mandatory to request or receive by those
administered.
2. That for them, their reservation in favor of the public sector is established because it
refers to the manifestation of the exercise of authority.

II. The payment received for a service of contractual origin or the consideration received from the
user in payment for services not inherent to the State is not a rate.

III. The collection for the collection of fees must not have a destination unrelated to the service or
activity that constitutes the cause of the obligation.

9. How is Contributions defined, what is its legal basis?

R.- Article 12° CT (Special Contributions). Special contributions are taxes whose obligation has
as its generating event benefits derived from the performance of certain state works or activities
and whose product must not have a destination other than the financing of said works or activities
that constitute the budget of the obligation. The treatment of special contributions arising from
contributions to social security services will be subject to special provisions, with this Code having
a supplementary nature.

Subcategories

 Improvement contribution
 Special contribution
 Social Security Contributions.

10. How is Municipal Patents defined?

A.- These are taxes that have as a generating fact the authorizations known to the municipalities
for the performance of economic, professional, service activities and any other activity that is
carried out within the domain of each of the municipalities, they also apply to the taxes that
municipalities charge for the use and exploitation of public domain assets.

11. What is understood by Tax Base and Aliquot?

A.- It is the amount on which the tax is applied. It constitutes the fact, the amount, figure or
volume on which the tax must be calculated and applied, which may be a fixed or progressive
rate or aliquot. It is the basis of measurement of the tax
Article 42° CT (Tax Base). Taxable or taxable base is the unit of measurement, value or
magnitude, obtained in accordance with the respective legal regulations, on which the rate is
applied to determine the tax to pay.
Article 46° CT (Aliquot). It is the fixed or percentage value established by Law, which must be
applied to the tax base to determine the tax to pay.
12. What are the Subjects of the Tax Obligation and under what legal basis is this?
A.- ACTIVE SUBJECT

Article 21° CT (Active subject). The active subject of the tax legal relationship is the State,
whose powers of collection, control, verification, valuation, prior inspection, inspection, liquidation,
determination, execution and others established in this Code are exercised by the national,
departmental and municipal Tax Administration. provided by law. These powers constitute
activities inherent to the State. The activities mentioned in the previous paragraph may be
granted in concession to private companies or societies.

PASSIVE PERSONS

The taxpayers of the tax obligation must assume that the Tax Law can place different subjects in
different legal situations that must be classified and differentiated.

Article 22° CT (Passive subject). The taxpayer or substitute thereof is a taxable person, who
must comply with the tax obligations established in accordance with this Code and the Laws.
Article 23 CT (Taxpayer). Taxpayer is the taxable person with respect to whom the event
generating the tax obligation is verified. This condition may occur: 1. In natural persons
regardless of their capacity according to private law. 2. In legal persons and in other collective
entities to whom the Laws attribute the status of subjects of law. 3. In existing inheritances,
communities of property and other entities lacking legal personality that constitute an economic
unit or a separate patrimony, susceptible to taxation. Saving autonomous assets emerging from
securitization processes and investment funds managed by Investment Fund Management
Companies and other trusts.
Article 25° CT (Substitute). The substitute is the natural or legal person generically defined by
tax regulatory provision, who in place of the taxpayer must comply with the material and formal
tax obligations, in accordance with the following rules: 1. Substitutes as withholding or collection
agents are natural or legal persons who, due to their functions, activity, trade or profession,
intervene in acts or operations in which they must carry out the withholding or collection of taxes,
assuming the obligation to deposit the amount to the Treasury. 2. Withholding agents are natural
or legal persons designated to withhold the tax resulting from taxing operations established by
Law. 3. Collection agents are natural or legal persons designated to obtain, together with the
amount of the operations that give rise to the collection, the authorized tax. 4. Once the
withholding or collection has been made, the substitute is solely responsible to the Treasury for
the amount withheld or received, and the debt for the taxpayer for said amount is considered
extinguished. If the withholding or collection is not carried out, the taxpayer will be jointly and
severally liable, without prejudice to the right of repetition against the latter. 5. The withholding
agent is responsible to the taxpayer for withholdings made without legal or regulatory rules that
authorize them.
Article 26° CT (Solidarity Debtors ). YO. Those taxpayers with respect to whom the same
generating event is verified are jointly and severally obligated, unless the special Law provides
otherwise. In other cases, solidarity must be expressly established by Law.
Article 27° CT (Responsible Third Parties). Responsible third parties are persons who, without
being taxable persons, must, by express mandate of this Code or legal provisions, comply with
the obligations attributed to them. The character of responsible third party is assumed by the
administration of another's assets or by the succession of obligations as a result of the free or
onerous transfer of assets.
13. What is understood by tax debt, indicate the ways in which each of them can be
extinguished?
R.- Tax Debt (DT) is the total amount that the taxpayer must pay after the deadline for
compliance with the tax obligation has expired, this constituted by the Omitted Tax (TO), the
Fines (M) when applicable, expressed in Housing Development Units (UFV's) and interests (r).
The Omitted Tax (TO) expressed in Housing Development Units (UFV's) is the result of dividing
the omitted tax in national currency by the Housing Development Unit (UFV) on the due date of
the tax obligation. The Housing Development Unit (UFV) used for the calculation will be the one
officially published by the Central Bank of Bolivia
Forms of Extinction of Tax Debt
Payment: The payment of the tax obligation constitutes the main and clearest way of
extinguishing said obligation, provided that it is made within the deadlines, terms, conditions and
amounts established by the tax law and regulatory provisions.
1. Payment must be made in the place, date and manner established by the regulatory
provisions.
2. There is payment to the taxpayer when tax is withheld or collected.
3. The Tax Administration may fundamentally provide general ex officio extensions for the
payment of taxes.
4. Payment of the tax debt will be accredited or proven by certification of payment in the
originals of the respective declarations.
Compensation: When the same taxpayer is a debtor and creditor of taxes, they can compensate
their debts and tax obligations. This compensation may be for the same taxes or taxes or for
different taxes or taxes, as established by the legislation of each country.
Confusion: There is extinction of the tax obligation due to confusion when the active subject
acquires the status of taxable subject at the same time. Ex. When a municipality acquires real
estate through expropriation or another form of acquisition, it becomes an active and passive
subject.”
Condonation: Condonation or Remission is the extinction of the tax obligation or its supervision or
any other type of obligation, by the promulgation of an express Law, and must expressly indicate
the scope of the condonation in addition to the main obligation and the fines and interests.
Prescription: Prescription is a form of extinction of the tax obligation that occurs due to the mere
passage of time. This extinction generally refers to the payment of the tax obligation, the
inspection and all the elements that accompany the prescribed tax.
14. What is the procedure before the Tax Administration, regarding notifications and
determination of the debt?

A.- The determination made by the Tax Administration may be total or partial. In no case may
the object of the inspection already carried out be repeated, except when the taxpayer or
responsible third party has intentionally concealed information related to taxable events.

Notifications

The acts and actions of the Tax Administration will be notified by one of the following means,
as appropriate:

1. Personally
2. By ID
3. By Edict
4. By certified postal correspondence, carried out by public or private mail or by
electronic communication systems, facsimiles or similar
5. Tacitly
6. Massive
7. In Secretariat

Determination of tax debt: The determination of tax debt will be carried out:

1. By the taxpayer or responsible third party , through sworn statements, in which the
tax debt is determined.
2. By the Tax Administration , ex officio in exercise of the powers granted by Law.
3. Mixed , when the taxable person or responsible third party provides the data on the
basis of which the Tax Administration sets the amount to pay.

15. With respect to the Challenge of the acts of the Tax Administration, before which authority will
it be carried out?

A.- The AIT It is part of the Executive Branch under the supervision of the Ministry of Economy
and Public Finance, it is an autonomous body of public law with autonomy of administrative,
functional, technical and financial management with jurisdiction and competence throughout the
national territory.
The AIT It is financed with 1% of total tax collections, it is composed of a General Tax Authority
based in the city of La Paz and four (4) Regional Tax Authorities based in the capitals of the
departments of Chuquisaca, La Paz, Santa Cruz and Cochabamba.

16. What resources does the taxpayer have when he considers his interests harmed?
A.-

The Appeal Appeal: In cases in which the taxpayer considers that the Determinative Resolution
harms his interests and rights, he has the option of filing an Appeal Appeal before the Tax
Authority. The appeal is presented within 2 days of being notified with the act against which it is
being requested.

It is filed in the following cases:

1. Determinative Resolutions
2. Denial Resolutions
3. Resolutions that deny requests for exemption, compensation, repetition or refund of
taxes.

The appeal does not proceed against internal, preparatory measures, including reports and
Charge Hearings. The appeal is presented to the Authority that issued the Resolution.

The Hierarchical Appeal: The taxpayer or anyone who considers that the resolution that resolves
the Appeal Appeal violates their rights, may file a well-founded Hierarchical Appeal within a
period of 20 calendar days from the notification with the respective Resolution.

The Hierarchical Appeal must be substantiated and resolved by the Tax Challenge Authority.
Once the administrative route has been completed through the Appeal and Hierarchical Appeal, it
is necessary to initiate the contentious administrative claim.

17. What is the Tax Consultation

A.- Whenever it concerns tax, confusing and/or controversial issues with personal or direct
interest, information may be requested on the application of the regulatory provision to a specific
factual situation.
Established Deadlines
YO. The query must be formulated in writing and meet the requirements established by
regulation.
II. If the requirements described in the regulations are not met, the Tax Administration will not
accept it, returning it to the interested party so that they can complete it within 10 days;
Otherwise, it will be considered not presented.
18. What is the Repetition action in Tax Matters?
A.- The repetition action in Tax matters is one where the taxpayer or directly interested parties
claim from the Tax Administration the restitution of undue payments or excesses for any tax
concept.
Established Deadlines.- The repetition will proceed within 45 days after the request, within this
period the Tax Administration will make a ruling, through a resolution expressing rejection or
accepting totally or partially the requested repetition and authorizing the issuance of the
corresponding payment instrument.
In Which Cases It Applies.- The repetition action proceeds in:
 Improper payments.
 Overpayments
For any tax concept.
19.- What is tax demolition in Tax Matters?
A.- It is the act by virtue of the State by law partially or totally restoring or establishing taxes paid
to responsible subjects or third parties who meet the conditions to return as provided by law,
which determines the form, requirements and deadlines.
 Established Deadlines.- The code does not give deadlines because it is subject to a
standard.
 In What Corresponds.- The return modality is presented in:
 If it had been subject to the presentation of a guarantee by the applicant.
 If you have identified non-compliance with the conditions that justified the return without
prejudice to the challenge, it will be presented.
 Responsibility.- Tax refund is an act by which partial or total refunds are paid to certain
taxable persons or responsible third parties, without deadlines in the code in cases of
guarantee notes presented or non-compliance with the conditions.
20.- What are certifications in Tax Matters?
A.- They are those that the taxable person or a responsible third party must prove compliance
with their formal tax obligations.
 Established Deadlines.- A term of no more than 15 days has official responsibility and in
accordance with the regulations established.
  In Which Cases It Applies.- It applies to prove non-compliance with its formal tax
obligations.
21. Explain what Tax offenses consist of, what are the sanctions, is there non-retroactivity?

A.- Illegal tax is any action or omission against the tax law.
 The procedure to establish and sanction tax contraventions is governed only by the rules
of this Code, tax regulatory provisions and subsidiarily by the Administrative Procedures
Law.
 The investigation and prosecution of tax crimes are governed by the rules of this Code,
by other tax laws, by the Code of Criminal Procedure and the Penal Code in its general
part with the particularities established in this rule.
Tax Contraventions.- They are actions or omissions contrary to tax regulations and whose
sanction is economic. The established contraventions are the following

 Failure to register in tax records

 Non-issuance of invoice, fiscal note or equivalent document
 Payment omission
 Contraband when it refers to the last paragraph of Article 181°
 Failure to fulfill other formal duties
 Those established in special laws
Tax Crimes. – They are typical actions or omissions, unlawful, guilty and punishable.

The Tax Crimes are:

 customs fraud
 Public incitement not to pay taxes
 Violation of seals and other tax controls
 Smuggling
 Other customs crimes.

Types of Sanctions.- There are two types of punishment

 Main Penalty.- Deprivation of Liberty

 Accessory Penalty.- Economic compensation

Irretroactivity In Tax Matters: The tax norm is not retroactive except for the cases indicated in the
CPE