Presentation of Budgetary Balance as an Argument Justifying Granting Tax Payment Relief: Scope of Control of Discretionary Decisions by an Administrative Court

Abstract

The author analyzes a ruling of the Voivodship Administrative Court in Lublin concerning the application of Article 67a of the Tax Ordinance. The judgment in question raises the issue of the extent to which an administrative court can review the actions of a tax authority when exercising administrative discretion. The author agrees with the court in Lublin that the authority’s decision in this regard should consider criteria that align with the recognized constitutional values in tax collection. In this regard, one hopes that the court’s ruling will be the prevailing line of jurisprudence that will significantly improve the taxpayer’s procedural position within the framework of the procedure for granting tax payment relief. Furthermore, the author examines the practical implications of arguments related to the preservation of budgetary balance for both the municipality (which applied for relief from the payment of a tax liability) and the State Treasury. In this respect, the author’s basic thesis is that the argument of the preservation of budgetary balance should be taken into account when reviewing the legality of the tax authority’s decision at hand. However, this cannot be an argument that once provided will exclude the possibility of granting of tax payment relief in every instance.