Tax law is one of the different branches that make up public law. Also called tax law, it is part of financial law. To do this, use is made of a series of rules and principles, a series of legal provisions to regulate fiscal activity.
The Treasury is the State body that is in charge of determining, liquidating and administering taxes. The latter are the economic obligation to which the State submits citizens to be able to meet public expenses.
In this regard, it must be taken into account that tax law regulates the legal relations of the State. It is represented by the Treasury, which acts as the active subject, as well as by the taxpayers, who are the passive subjects.
The main objective of tax law is to collect everything related to taxes, for which it enjoys the power to require taxpayers to comply with the respective obligations that they must have with the State. In addition, they must appear before it to present, as appropriate, accounting documents, affidavits or achievements, as well as facilitate the work of the inspectors.
In the same way, it must be taken into account that this right has different rules and regulations in the form of sanctions. These fines are given in the event that there are infractions by citizens.
The history of tax law
- The origins of tax law date from the beginnings of civilization, since a social organization was structured. This is due to the fact that tributes existed since ancient times.
- In fact, in Ancient Egypt, citizens were forced to pay taxes to the Pharaoh and there was control over the declaration of taxes on fruits and animals. On that occasion some ceramic pieces were used as proof of payment.
- However, it was not until the European Middle Ages when the foundations of tax law were laid. Back then, the feudal lord levied taxes to protect his vassals. In addition, the Romans were the first to carry out a control of the goods and have a census with its inhabitants.
- They were also pioneers when it came to having collection bodies and legal bodies, which makes this the true seed of tax law as it is currently known.
Fundamental principles of tax law
- The tax can only be imposed on citizens through a law.
- An individual is only obliged to pay the contributions duly stipulated by law.
- A State can only demand that a tax be paid when so provided by law.
Types of tax law
Within tax law we can find a series of divisions, which are the following:
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Constitutional tax law
This type of tax law focuses on the rules that are included in the constitutional text of a State. It regulates, fundamental and is limited this type of right.
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Substantive tax law
This division focuses on the set of legal regulations that are in charge of determining everything related to the obligation of a tax nature, both its origin and extinction, effects….
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Criminal tax law
Criminal tax law is in charge of defining and classifying the infractions and crimes that occur in the tax field.
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International tax law
This division of tax law includes the different legal provisions that apply with respect to the payment of contributions indicated by international agreements or treaties.
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Administrative or formal tax law
It contains the set of legal rules by which the activity of the body dedicated to administering taxes is regulated, covering both its operation and its organization and structure.
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Procedural tax law
Procedural tax law is in charge of organizing the courts, as well as their jurisdiction and competence to define the means of defense through which private citizens can avail themselves before the treasury.
Classification of taxes
In the vast majority of state tax systems, at least three elements or tax figures can be found, which are the tax, the rate and the special contribution.
Taxes
Taxes are those taxes that a State demands without there being any consideration for the payment immediately. Despite this, compliance is required, since it will return it in the long term through different areas such as education, security or health. Its purpose is to satisfy public needs.
In this way, we can find different taxes such as:
- Taxes on income, profits and capital gains.
- Contribution to Social Security.
- Property taxes.
- Taxes on goods and services.
- Labor and payroll taxes.
- Other taxes.
All of them can be classified according to their origin (internal or external); according to administrative criteria (direct or indirect); according to their contributive capacity; according to the taxed activity; the reason of the subject; or according to its term, among others.
Economic effects
When a tax is established, it implies a loss in the taxpayer’s income, which affects their purchasing power. This can cause the behavior of the individual to affect the distribution of one’s own income.
Likewise, it must be taken into account that some taxes affect the price of the taxed products. For this reason, the taxpayers in charge of their sale or production can raise prices, which have an impact on final consumers.
Tax system
A tax system is made up of a set of taxes that exist in a country during a certain time. This is responsible for exercising the so-called fiscal pressure, which is directly related to the impact that this system has on the country’s wealth.
For this reason, it is necessary to know the meaning of fiscal pressure, which is the sum of taxes that directly affect the taxpayer. Through a series of rules, the State exercises its power over taxpayers, thus seeking the collection of public resources.