New Tax Law Modernization is officially published
On Monday, February 24th, the Official newspaper published the Law 21.210 that establishes the new tax project. Regarding its latest version, the only significant change is that the Constitutional Court resolved the preventive control of constitutionality of the Tax Modernization project by eliminating a part of article 6 letter A.- No. 7 of the Tax Code, which refers to the power of National Director to find out about the hierarchical appeal that comes against the RAV.
Alejandro Abuyeres, associate of the tax practice, explains that the final sentence that indicated “The Director will regulate the procedure to know and resolve this resource through resolution” was eliminated, considering that this violates the article 19 No. 3 subsection sixth of the Constitution, that states that the legislator should be the one who regulates the procedure to know and resolve said appeal.
As well, Raul Marshall, leader of the tax practice and partner at Baraona Marshall & Cía, commented that “the procedure will be governed by the Law of Bases of Administrative Procedures (Law No. 19,880), whose 30-day deadline to resolve is too short for complex cases”.