Protection Of Taxpayers Research Articles

Literature Review: Taxpayers in International Law: International Minimum Standards for the Protection of Taxpayers’ Rights, J. Kokott & P. Pistone (eds). Hart Publishing. 2022

Literature Review: Taxpayers in International Law: International Minimum Standards for the Protection of Taxpayers’ Rights, J. Kokott & P. Pistone (eds). Hart Publishing. 2022

Concerns Over the Protection of Taxpayers’ Privacy Data on The Core Tax Administration System

The modernization of tax systems like Indonesia’s Core Tax Administration System (CTAS) offers potential benefits like increased efficiency and effectiveness. However, it also raises significant concerns about the protection of sensitive taxpayer information. This article explores these issues, analyzing the data protection laws in Indonesia, the possible dangers associated with gathering and handling taxpayer information in CTAS, and the strategies to reduce these risks. The article concludes that although CTAS offers numerous advantages, strong data protection measures, including clear regulations, robust security protocols, and transparency, are crucial to ensure taxpayer trust and the overall success of the system. In other words, While the Core Tax Administration System in Indonesia has great potential to optimize tax administration processes, resulting in improved efficiency and effectiveness.it is imperative to implement strong data protection measures alongside it to ensure taxpayer privacy is protected. This requires a comprehensive approach that includes clear regulations, strong security protocols, transparency, and accountability. By making the protection of taxpayer privacy a top priority, Indonesia has a chance to create a tax system that is trustworthy, efficient, and respectful of people’s basic rights.

Automatic Exchange of Information and the Protection of Taxpayers’ Rights: Towards a New Multilateral Multi-Tiered Architecture

Automatic Exchange of Information and the Protection of Taxpayers’ Rights: Towards a New Multilateral Multi-Tiered Architecture

Automatic Exchange of Information and the Protection of Taxpayers’ Rights. Towards a New Multilateral Multi-Tiered Architecture

Automatic Exchange of Information and the Protection of Taxpayers’ Rights. Towards a New Multilateral Multi-Tiered Architecture

税收核定中纳税人权利保护研究

税收核定中纳税人权利保护研究

The Need for A Constitutional Complaint Mechanism for Tax Matters in Indonesia

Currently, there is no available mechanism for directly protecting taxpayers’ constitutional rights from potential violations resulting from tax regulations and policies in Indonesia. The Constitutional Court’s authority for constitutional review, the Supreme Court’s authority for judicial review, and the administrative appeal process before the State Administrative Court all fail to provide sufficient protection for taxpayers’ constitutional rights. This article proposes the introduction of a constitutional complaint mechanism for tax matters in Indonesia, as a mechanism to directly protect these rights. The constitutional complaint process ensures direct conformity between the reviewed regulation or policy and the Constitution, with an emphasis on the application of a proportionality test. This test serves as a valuable tool for assessing the balance between taxpayers’ constitutional rights and the government’s duty to collect taxes. Striking this balance is essential for advancing the exercise of political accountability in taxation. This study employs a normative-empirical methodology, combining case law studies and theoretical perspectives to conceptualize the use of constitutional complaint against tax regulations and policies in Indonesia. The main finding of this research shows that the current constitutional review mechanisms put taxpayers at a disadvantage. Therefore, the authors conclude that the establishment of a constitutional complaint process will improve the protection of taxpayers’ rights.

Об условиях применения льгот по российским соглашениям об избежании двойного налогообложения

The article focuses on rules regulating who is entitled to treaty benefits under Russian tax treaties. Tax treaty benefits cover all mechanisms of elimination of double taxation, guaranties and mechanisms of protection of taxpayer’s rights available under a double tax treaty. Entitlement to tax treaty benefits may be studied widely – as covering all rules of double tax treaties and national legislation on applicability of a certain benefit, and in a more narrow way – as covering just applicable anti-avoidance rules. The focus is on analysing the rules specifically aimed at discouraging abuse of benefits – the principle purpose test and the simplified benefit limitation provision. The principle purpose test is considered in more detail as a general anti-avoidance rule for applying tax treaty benefits.

The Taxpayer’s Right to Privacy in Context of the Article 48 of the Polish Act on National Revenue Administration (KAS)

The considerations concern a problem that is rarely raised on the basis of tax issues, namely the taxpayer's right to privacy. They are carried out in the context of one of the legal regulations which has a significant impact on the development of the protection of the privacy of the taxpayer. It should be noted that the changes to tax rules introduced in the last decade clearly indicate that the tax legislator shifts the boundaries of the taxpayer's inviolable privacy sphere. In the first part, an theoretical understanding of the notion of taxpayer's privacy will be considered. The considerations will serve as a starting point for the second part of the discussion, which focuses on the taxpayer’s right to privacy by exploring normative basis for protection of taxpayer’s privacy. The following third part addresses how specific tax rules affect the development of the protected and inviolable sphere of the privacy of a taxpayer. The study carried out leads inter alia to conclusion that the current status of the taxpayer's right to privacy seems questionable and not spotted enough, as the legislator invasions the private sphere of taxpayers using a number of tools to this end. The author therefore argues that the strengthening and updating the taxpayer's right to privacy protection is necessary.

Application of modern digital technologies in the field of taxation: foreign experience and prospects for Ukraine

Problem setting. In the current conditions of digitalization of social relations, the implementation of the latest digital technologies in the sphere of public legal relations is of great importance. Tax relations are certainly one of such relations. Such technologies (FinTech, Blockchain) create both new opportunities for the participants of such relations (we are talking about the interaction of the state represented by regulatory authorities and taxpayers) and certain challenges for taxpayers. analysis of recent researches and publications. The issue of using modern digital technologies, including in the field of taxation, is currently very relevant. Some aspects of the use of digital technologies in the financial sector are covered in the works of such domestic scholars as: H. Bukharin, O. Dmytryk, R. Samsin, O. Terliuk, K. Tokarieva, V. Riadinska, ect. At the same time, no comprehensive research on this topic has yet been conducted. Purpose of the research is to analyze foreign experience and trends in the use of modern digital technologies in the field of taxation in Ukraine. article’s main body. Attention is focused on the lack of legislative consolidation of the category “blockchain” in Ukraine. It is emphasized that blockchain technology implements the principle of convenience of taxpayers’ tax liability fulfillment. In Ukraine, a similar principle has also been enshrined in legislation, namely, the principle of uniformity and convenience of payment, enshrined in Article 4 of the Tax Code of Ukraine. The author argues that in the context of the topic under study, this principle should be considered broader than just the convenience of payment, since taxpayers and regulatory authorities have relations not only with regard to payment of taxes and fees. It is noted that under martial law in Ukraine, the use of digital technologies and electronic services has greatly simplified the interaction of obligated and authorized participants to tax relations. It is stated that when using blockchain, the security of data (information) contained in the relevant registers or services is enhanced, and thus, the protection of taxpayers’ rights is ensured. This is one of the issues of great concern to taxpayers ensuring the security and protection of tax information transmitted between the relevant parties to tax relations. conclusions and prospects for the development. It is emphasized that the purposes of using this digital technology in taxation are different for each particular State, depending on the country’s tax policy. Based on the analysis of foreign experience of implementing blockchain technology in the tax area, the author emphasizes the importance of creating a high-quality legal framework for such innovations, since this will be crucial for further practical application of such mechanisms and will create relevant consequences, affect the quality of the State’s tax policy and form an appropriate model of interaction between regulatory authorities and taxpayers.

Cashless Society and Central Bank Digital Currencies: Tax Aspects and Taxpayer Protection

This study addresses the developments surrounding the emergence of societal models where the relevance of traditional means of payment, namely cash, is reduced or outright eliminated and the adoption of payment instruments relying on digital technology platforms is encouraged, the so-called “cashless society”. The path towards a cashless society implies the elimination of cash and its replacement with electronic means of payment and, in the long run, with central bank digital currencies. Questions about the effects of these developments for tax purposes have been, to date, relatively neglected. In this study, the authors will then focus on: (i) the risks for the protection of fundamental rights; (ii) the impact of the cashless society with respect to monetary policies in light of certain tax spillover effects; and (iii) the effect of this evolution toward a fully-fledged cashless society on the structure of the tax system.

Ways to Protect the Taxpayers' Rights: Problems of Tax-Legal Regulation

The article examines the regulation of the institution of protection of taxpayers’ rights in tax law. The author focuses on the problem of the balance of public and private interests in the tax sphere. The priority of protecting public interests, inherent in tax law as a public branch of law, in the opinion of the author, imposes features on the consolidation of ways to protect the rights of taxpayers and their implementation. The article discusses the self-protection of rights in the tax sphere, presents the problems of its implementation. It also describes in detail the jurisdictional protection of taxpayers’ rights in the framework of appealing acts of tax authorities and actions (omission) of their officials. The author highlights the mandatory nature of the administrative prejudice, gaps in the regulation of the procedure and the timing of proceedings in the case of a tax offense. The conducted research allowed to make the conclusion about the improvement of regulation in the field of protection of taxpayers’ rights.

Legal aspects of tax payments by a third party

In this article the author highlights the legislative changes of 2016 related to the nature of fulfilment of the tax obligation. Taking into account many doctrinal positions, both advantages and legal problems concerning the mechanism of tax payment by another person are given. The purpose of this study is to assess the necessity and effectiveness of the legislator's assumption of non-personal fulfilment of tax obligation. The author concludes that it is necessary to take various measures that contribute to levelling the risks associated with non-personal fulfilment of tax liability. When writing the article such methods as theoretical-predictive, formal-legal, system-structural and method of legal modelling were used. The novelty of this article lies in the fact that it provides an extensive analysis of the study of non-personal fulfilment of tax liability, drawing attention to its advantages and disadvantages for both taxpayers and tax authorities. Also an aspect of the novelty of the article is the measures proposed by the author aimed at optimising the process of non-personal enforcement of tax liability. The main conclusion of the article is that to date there is no single legal means for the return of erroneously paid tax payments in the case when the payment is made by a third party. The author emphasises the urgent need for further work of the legislator in this direction in order to improve the legal mechanism of taxation in this part, as well as to ensure the protection of taxpayers' interests.

Tax Treaty Dispute Resolution Procedures

The subject of the work is a comparative analysis of the OECD approach and the EU approach to the resolution of international tax disputes. The research is conducted on the basis of the provisions of the OECD Model Tax Convention, the OECD Multilateral Tax Convention, the EU Arbitration Convention and the EU Directive. The purpose of the work is to find the most effective mechanism for resolving international tax disputes in terms of ensuring the protection of taxpayers' rights in the dispute resolution procedure. The methodological basis of the work was made up of general scientific (analysis, classification, synthesis, deduction, induction, analogy), private scientific (system method) and special legal (formal legal and comparative legal) methods of scientific research. The scientific novelty of the work suggests the proposal and justification as a way to increase the effectiveness of the resolution of international tax disputes, the use of mediation in a mutually agreeable procedure with the provision of the taxpayer with the possibility of direct participation in the dispute resolution procedure. Based on the results of the study, the author came to the following conclusions. The practice of applying the mutual agreement procedure and arbitration shows that this dispute resolution mechanism has a number of significant drawbacks. In order to improve the efficiency of dispute resolution, the OECD and the EU are striving to develop mandatory arbitration and do not consider non-binding mechanisms, since they do not guarantee an agreement on the dispute. However, mandatory arbitration cannot be considered a universal instrument, since States see it as a threat to sovereignty. The experience of States that actively use mediation to resolve domestic tax disputes shows that mediation can also become an effective mechanism for resolving disputes at the international level, since it allows the parties to consider various aspects of the dispute from different sides. According to the author's position, the shortcomings of mediation outlined in the doctrine can be mitigated by granting the affected taxpayer the right to participate directly in mediation, presenting his position on the case.

Preface: Issue Dedicated to the Legal Protection of Taxpayers in the Recovery of Taxes

Please note that this preface is non-peer reviewed.

Towards a Taxpayers’ Rights-Compliant Cross-Border Recovery of Tax Sanctions

A faltering procedure for cross-border enforcement of sanctions under the Council Directive 2010/24/EU of 16 March 2010 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures (TRD), has contributed to a degree in uncertainty and a wavering protection of taxpayers' rights. Against this background, the article proposes taxpayers’ rights (due process, proportionality, non bis in idem) as minimum standards for the applicability of the TRD in the area of tax sanctions. In this regard, the article revisits the scope of the TRD, and advocates for a standardization of the definition of sanctions to whose recovery the TRD is applicable (namely, amounts imposed for deterrent purposes, definitively imposed after due process of law and respecting minimum parameters of proportionality). These minimum requirements should be regarded as essential to the cross-border recovery of tax sanctions, as they stem from EU law as part of its fundamental principles. Hence, due process, proportionality and non bis in idem standards should be fully enforceable by the requested state, without prejudice to the Member States’ broad discretion in defining and applying tax sanctions, providing taxpayers with adequate protection and further certainty.

The Fundamental Right to Fair and Equitable Treatment in the Cross-Border Recovery of Taxes within the EU: A Need for a Common Minimum Standard

This article examines the application of the EU fundamental rights protection standard in the context of cross-border recovery of taxes within the European Union. It argues that, when the Tax Recovery Directive is applicable, the standard of protection is adequate due to the principle of conforming interpretation requiring that secondary law is interpreted in line with primary law. However, we also contend that any fundamental rights violation at the level of the initial procedure for establishing the tax claim in the requesting Member State cannot be remedied whenever that procedure is in an area outside the scope of EU law (most of the direct tax measures). At the same time, the outcomes of such a procedure are subject to mutual recognition in other Member States. Therefore, and in order to strengthen the principle of mutual trust within the Union, the article proposes introducing a piece of secondary legislation that spells out a minimum standard of protection of taxpayers’ rights.

A Litigation Demanding Performance of Certain Obligations in Taxtation and the Protection of Taxpayer's Rights

A Litigation Demanding Performance of Certain Obligations in Taxtation and the Protection of Taxpayer's Rights

Guest Editors’ Introduction: Opening Conversations that Matter in Public Music Studies

Guest Editors’ Introduction: Opening Conversations that Matter in Public Music Studies

In search for useful understanding of the term “privacy” for tax matters

The terminology issue regarding the concept of “privacy” seems to be increasingly important in the context of the changing tax reality in which the emphasis is put even more strongly than before on the protection of fiscal interest, at the expense of limiting the sphere of taxpayers' privacy, in particular through the expansion of their surveillance on an unprecedented scale. The OECD, in its notable achievements, treats the taxpayer's right to privacy very superficially. In one of the documents, which is a kind of report on the rights and obligations of taxpayers in force in individual countries, we can read that “All taxpayers have the right to expect that the tax authorities will not intrude unnecessarily upon their privacy”. I would argue that this statement is far not enough in the reality of current technological possibilities and realizes too narrow protection of taxpayer’s right. The issue of taxpayers’ right to privacy should be introduced to public and scientific awareness. But how should the term privacy itself be understood? The answer is not easy, one the term is not precise so understanding is difficult though the literature on this issue is very broad. Two it is rarely used on the ground of debate on taxation. The critical approach has led to a review of the immensely rich body of literature on the theory of privacy and the right to privacy, and an attempt to adopt an understanding of the term “privacy” that will also be useful in tax matters. There is the absence of a consensus on the adoption of a particular way of defining “privacy”. For that reason it has to be emphasized that there is no theoretical basis to conduct a discussion on this specific taxpayer right, which is right to privacy. This paper is an attempt to find such understanding of the term "privacy" that will be useful in tax context.

Towards eXplainable Artificial Intelligence (XAI) in Tax Law: The Need for a Minimum Legal Standard

Tax administrations globally increasingly rely on artificial intelligence (AI) systems for automation. However, automation has a huge potential impact on the rights of taxpayers subject to algorithmic assessments, which is compounded by the opacity of complex AI systems. This article argues that adequate protection of taxpayers’ rights demands the use of eXplainable AI (XAI) technologies that can render the functioning and decisions of tax AI systems understandable for taxpayers, administrative appeal bodies and the courts. This demand follows from the constitutional principles that guide taxation. Still, it is insufficiently addressed by soft and hard law instruments on AI, which do not address the particular information needs of the tax domain. To address this gap, the authors conclude the article by mapping technical and legal challenges for the proper application of explanation techniques to tax AI to ensure that automation does not come at the expense of taxpayers’ rights.