Key Benefits:
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
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DECREE Nº 135.-
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR, CONSIDERING: I.-That the deployment of the review function in the field of internal taxes
should be manifested as a real guarantee and objective for the effective exercise of the right to claim the
II.
The body to which the deployment is responsible, the body to which the deployment is responsible, the body to which the deployment is responsible. of that review functionmust be characterized by its functional independence, while ensuring with its decisions according to the law that the legitimacy of the liquidations of trade corresponds to the principles and rules of taxation applicable in each individual case; and that the development of the same is ventilated by means of administrative procedure, governed by principles of the same nature;
III.-That this Law intends to carry out the proposed purposes,
regulating as regards the structure and performances of the said organ within the incident of appeal and for all manner of definitive acts of unofficial liquidation and imposition of fine issued by the Directorate General of Internal Revenue in application of the tax rules under its jurisdiction, owing to (i) the Commission's proposal for a Directive on the approximation of the laws of the Member States the rectifying and similar resources that are currently being proposed in the respective tax laws;
FOR TANTO,
in use of its constitutional powers and on the initiative of the President of the Republic, through the Minister of Hacienda, DECRETA: LAW ON THE ORGANIZATION AND FUNCTIONING OF THE COURT OF APPEALS FOR INTERNAL AND CUSTOMS TAXES (4) ORGANIZATION AND OPERATION
Art. 1.-THE COURT OF APPEALS OF INTERNAL AND CUSTOMS TAXES SHALL BE THE ADMINISTRATIVE BODY COMPETENT TO HEAR THE APPEALS LODGED BY THE TAXABLE PERSONS AGAINST THE FINAL DECISIONS IN RESPECT OF THE LIQUIDATION OF TRADE IN TAXES AND IMPOSITION OF SANCTIONS ISSUED BY THE DIRECTORATE-GENERAL FOR INTERNAL TAXATION. IN ADDITION, IT HAS JURISDICTION TO HEAR THE APPEAL OF FINAL DECISIONS WHICH THE DIRECTORATE-GENERAL OF CUSTOMS HAS ISSUED IN RESPECT OF THE SALE OF TAXES, THE IMPOSITION OF PENALTIES, CUSTOMS VALUATION, CLASSIFICATION TARIFF AND ORIGIN OF GOODS.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
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THE COURT WILL BE COMPOSED OF A PRESIDENT AND TWO VOCAL SPECIALISTS IN
INTERNAL TRIBUTES AND TWO SPECIALIST CUSTOMS OFFICERS, WHO TOGETHER WITH THE PRESIDENT OF THE COURT, WILL BE AWARE OF APPEALS IN THE MATERIALS RELATED TO THIS ARTICLE. ALL MEMBERS OF THE COURT SHALL BE APPOINTED BY THE EXECUTIVE BODY IN THE FIELD OF FINANCE FOR A PERIOD OF FIVE YEARS EXTENDABLE AND SHALL CARRY OUT THEIR DUTIES WITH FUNCTIONAL AUTONOMY. TO BE APPOINTED PRESIDENT OF THE COURT OF APPEALS, IT IS REQUIRED TO BE A SALVADORAN BY BIRTH, LAWYER OF THE REPUBLIC, OF RECOGNIZED HONORABILITY, OVER THIRTY YEARS OF AGE, WITH EXPERIENCE IN TAX MATTERS, OR IN HIS DEFECT TO HAVE SIX YEARS OF PROFESSIONAL PRACTICE OR HAVING PLAYED A FIRST INSTANCE BENCH FOR THREE YEARS.
THE VOWELS MUST BE UNIVERSITY PROFESSIONALS AND HAVE SIX YEARS OF PROFESSIONAL EXERCISE IN TAX OR CUSTOMS MATTERS, THEY MUST BE OF NOTORIOUS COMPETENCE, RECOGNIZED HONORABILITY, SALVADORANS BY BIRTH AND OLDER.
WHEN THE TEXT OF THIS LAW IS REFERRED TO THE COURT, THE COURT OF APPEALS OF INTERNAL AND CUSTOMS TAXES SHALL BE UNDERSTOOD. (4) APPEAL INCIDENT
Art. 2.-IF THE TAXPAYER IS NOT IN AGREEMENT WITH THE RESOLUTION BY WHICH THE TAX IS AUTOMATICALLY LIQUIDATED OR A FINE IS IMPOSED, ISSUED BY THE DIRECTORATE-GENERAL FOR INTERNAL TAXATION OR GENERAL DIRECTION OF CUSTOMS, IT MAY INSTITUTE PROCEEDINGS OF APPEAL TO THE COURT, WITHIN THE TERM OF THE TERM OF FIFTEEN WORKING DAYS COUNTED FROM THE DAY FOLLOWING THAT OF THE RESPECTIVE NOTIFICATION. (2) (4)
In the document of appeal, which will be filed with a copy on a simple paper, the appellant will express the reasons for the fact and the right to support his or her challenge, each of his claims.
Art. 3.-In the case of the appeal, the appellant must point out, within the urban radius of San Salvador, that he should be sought for notifications and other measures.
Art. 4.-RECEIVED THE WRITTEN APPLICATION OF THE APPEAL TOGETHER WITH ITS COPY, THE COURT WILL ASK THE GENERAL DIRECTORATE OF INTERNAL TAXES OR THE GENERAL DIRECTORATE OF CUSTOMS, WHICH WILL FORWARD THE RESPECTIVE FILE WITHIN THE THREE-DAY PERIOD. THE COURT MUST SEND THE COURT TO EXAMINE ITS ADMISSIBILITY IN RELATION TO THE PRESENTATION IN TIME, FORM AND TO ASCERTAIN THE LEGITIMACY OF THE PERSON WHO IS USING IT. (4)
ADMISSION OF THE APPEAL, THE COURT SHALL REQUEST A REPORT FROM THE DIRECTORATE-GENERAL FOR INTERNAL TAXATION OR GENERAL DIRECTION OF CUSTOMS, REFERRING THE INCIDENT AND THE RELEVANT FILE TO THE COURT FOR THE PURPOSES OF ANSWERING THE POINTS CLAIMED AND JUSTIFYING ITS APPLICATION. ACTION IN RELATION TO THESE, WITHIN THE TERM OF FIFTEEN WORKING DAYS COUNTED
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
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FROM THE FOLLOWING TO THE CORRESPONDING PROVIDENCE NOTIFICATION. (4)
THE TERM FOR SUBMISSION OF THE REPORT, IF THE GENERAL DIRECTORATE OF INTERNAL TAXES OR GENERAL DIRECTION OF CUSTOMS, HAS NOT RETURNED THE INCIDENT AND THE RESPECTIVE FILE, SHALL BE SENT TO COLLECT. WHEN THE COURT HAS RECEIVED THEM, WITH OR WITHOUT A REPLY, IT SHALL OPEN TO EVIDENCE THE INCIDENT FOR THE TERM OF FIVE WORKING DAYS COUNTED FROM THE NOTIFICATION OF THE RESPECTIVE PROVIDENCE TO THE APPELLANT, FOR THE SOLE EFFECT OF THE LATTER REQUEST WITHIN THAT TERM THE PRODUCTION OF THE TESTS FOR THE OFFERED. (4)
The Court shall order the production of the evidence after the expiry of the previous term, and where they have been produced, shall send the appellant to submit its final claims in the eight-day fatal and non-renewable term from the following to the respective notification.
IN ANY CASE, THE DEADLINE FOR RESOLVING THE APPEAL AND THE NOTIFICATION OF THE JUDGMENT MAY NOT EXCEED NINE MONTHS FROM THE DATE OF THE APPEAL. (3)
Art. 5.-THE COURT OF APPEALS OF INTERNAL AND CUSTOMS TAXES, MAY IN THE SUBSTANTIATION OF INCIDENTS, ORDER OF TRADE INSPECTIONS AND EXHIBITION OF DOCUMENTS OR ACCOUNTS, PRACTICE ALL KINDS OF VALUES AND DILIGENCE NECESSARY FOR TO CLARIFY THE POINTS CLAIMED; AND TO RECEIVE ALL KINDS OF LEGAL PROOF, EXCEPT THE TESTIMONIAL AND THE CONFESSION OF THE GENERAL DIRECTORATE OF INTERNAL TAXES OR GENERAL DIRECTION OF CUSTOMS, IN THEIR DISSERVICE. IT MAY ALSO DECIDE ON ALL MATTERS RAISED BY THE FILE, WHETHER OR NOT THEY HAVE BEEN ALLEGED BY THE PARTIES CONCERNED; IN THE LATTER CASE THEY SHALL BE HEARD BEFOREHAND. (4)
All the administrative authorities of the Republic are obliged to process, dispatch and collaborate on the appeals, provisions, commissions and orders received from the Court of Appeals. The same thing will be for the third parties to whom they are required or request their collaboration in order to elucidate some claimed point.
Art. 6.-The Court may be aware of any situations of fact that the appellant raises, provided that they have been previously deducted from the Directorate-General. It may also receive evidence which was not produced before the Directorate-General, where it is justified in the case of unavailable evidence. GENERAL PROVISIONS
Art. 7.-It shall be definitively held in administrative headquarters, without prejudice to its challenge in administrative litigation:
(a) The decision of the Court of Appeal on the case claimed within the respective incident, from the date of of your notification;
b) The decision that the Court makes declaring the challenge inadmissibility;
from its notification.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
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Art. 8. In the interpretation of the provisions of this Law and its rules of law, it will be preferred to the end of the same and to the very nature of the tax law that characterizes them. Only where it is not possible to fix, by the letter or by its spirit, the meaning or scope of the rules, concepts or terms of the above provisions, the rules, concepts and terms of the common law may be used.
Art. 9.-The terms or time limits referred to in this law shall only cover business days.
Art. 10. THE CHAIRMAN, THE VOWELS, THE ALTERNATES OF THESE AND OTHER STAFF OF THE COURT, MAY NOT UNDER ANY CIRCUMSTANCES CARRY OUT ON THEIR OWN ACCOUNT OR THROUGH ANY PERSON PROCEEDINGS, REPRESENTATIONS OR PARTICULAR FUNCTIONS OF A TAX CHARACTER, SUCH AS PROVIDE TAX ADVICE, CARRY OUT ACCOUNTS, CARRY OUT INTERNAL, EXTERNAL, FINANCIAL, OPERATIONAL AUDITS, COLLABORATE OR PARTICIPATE IN DISPATCHES OR WITH PROFESSIONALS WITH A UNIVERSITY DEGREE OR NOT, PROVIDING SERVICES OF A TAX NATURE.
ALSO, THE MEMBERS OF THE COURT REFERRED TO IN THE FOREGOING PARAGRAPH SHALL COMPLY WITH THE INFORMATION RESERVE REFERRED TO IN ARTICLE 28 (3) OF THE TAX CODE IN RESPECT OF ALL INFORMATION AND DOCUMENTATION. OF A TAX CHARACTER TO WHICH THEY HAVE ACCESS. (3)
Art. 10-A. THE PRESIDENT, THE VOWELS, THE ALTERNATES OF THESE AND OTHER STAFF OF THE COURT, WILL BE LIABLE CIVILLY FOR THE DAMAGES THAT WILL CAUSE THE FISCUS OR THE TAXPAYERS, FOR THE ERRORS THAT THEY COMMIT FOR THE UNPERICIOUSNESS OR NEGLIGENCE IN THEIR OPINIONS AND RESOLUTIONS, OR IN VIOLATION OF THE PROVISIONS GOVERNING THEIR ACTIONS. IF IT IS DETERMINED THAT THE ACTION OF THE MEMBERS OF THE COURT REFERRED TO IS MALICIOUS, THE AUTHORITY CORRESPONDING TO THE IMPOSITION OF THE ADMINISTRATIVE SANCTIONS SHALL BE CARRIED OUT, WITHOUT PREJUDICE TO THE CRIMINAL LIABILITY OF THE COURT. IT SHOULD TAKE PLACE. (3)
Art. 11.-Any final decision of the Directorate-General for Internal Revenue on the settlement of tax and the imposition of fines, which shall be notified within the duration of this law, shall be appealed to the Court of Appeal of Internal Taxes, and the incident of appeal shall be dealt with in accordance with the provisions of the preceding Articles. Challenges relating to resolutions notified prior to the validity of this law will continue to be dealt with by applying the provisions of the various tax laws in force at the date of the respective notification.
Art. 11-A.-THE COURT OF APPEALS OF INTERNAL TAXES IN ORDER TO ENSURE ITS ADMINISTRATIVE CONTINUITY SHALL USE THE PHYSICAL, HUMAN AND BUDGETARY RESOURCES ASSIGNED TO THE COURT OF APPEAL.
THE COMMITMENTS MADE BY THE COURT OF APPEAL, BEFORE THE VALIDITY OF THIS DECREE, WILL BE SERVED BY THE COURT OF APPEALS OF THE INTERNAL TAXES CHARGED TO THE BUDGET ALLOCATED FOR THIS PURPOSE.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
SALARY LAW PLACES CORRESPONDING TO THE COURT OF APPEAL WILL BE USED BY THE COURT OF APPEALS OF INTERNAL TAXES. (1) VALIDITY
Art. 12.-This Law will enter into force on the first day of January of a thousand nine hundred and ninety-two; prior to its corresponding publication in the Official Journal.
GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, at eighteen days of the month of December of a thousand nine hundred and ninety-one. Luis Roberto Angulo Samayoa, President. Ciro Cruz Zepeda Peña, Ruben Ignacio Zamora Rivas, Vice President. Vice-President. Mercedes Gloria Salguero Gross, Vice President. José Francisco Guerrero Munguía, René Flores Aquino, Secretary. Secretary.
Ernesto Taufik Kury Asprides, Raul Antonio Peña Flores, Secretary. Secretary. Reynaldo Quintanilla Prado, Secretary.
CASA PRESIDENTIAL: San Salvador, at the twenty-one day of the month of December of a thousand nine hundred and ninety-one.
PUBLISH, ALFREDO FÉLIX CRISTIANI BURKARD, President of the Republic. Rafael Eduardo Alvarado Cano, Minister of Finance. D. NO 242 TOMO NO 313 DATE: December 21, 1991
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ LEGISLATIVE INDEX
REFORMS: (1) D.L. Nº 325, SEPTEMBER 24, 1992;
D.O. NO 183, T. 317, OCTOBER 5, 1992.
(2) D.L. Nº 499, MARCH 31, 1993; D.O. NO 84, T. 319, MAY 7, 1993.
(3) D.L. NO 494, OCTOBER 27, 2004;
D.O. NO 231, T. 365, DECEMBER 10, 2004. (4) D.L. NO 904, DECEMBER 14, 2005;
D.O. NO. 26, T. 370, OF 7 FEBRUARY 2006. LMN/gcl 9/03/06
