Abstract

Tax authorities, before issuing a tax decision, are required to determine the facts of a case, collect and consider all the collected evidence in a case. Only the factual basis for the decision established in this way can be the basis for the application of a ­provision of substantive law.
The principle of active participation of the party in the proceedings, contained in the norm of Article 123 § 1 of the Public Procurement Law, is not only the basis for the taxpayer's right to initiative of evidence, and therefore they have to submit requests for evidence and convince the authority that the tax liability has been paid in the correct amount. This principle means that a party has the right to be kept informed of the evidence on which the authority bases its findings in the case, as well as to submit evidence requests that combat the authority's findings. Without evidence properly entered into the file about which the party is informed, this right becomes illusory, and the authority's actions, inconsistent with the above rule, violate not only the principle of active participation in Article 123 of the Tax Code but also the principle of trust in Article 121 § 1 of the Tax Code.