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Decision No. 00121 issued by the Political-Administrative Chamber (Case: FYT 2006, C.A.)

Decision No. 00121, issued by the Political-Administrative Chamber of the Supreme Tribunal of Justice on February 10, 2016, was published in Official Gazette No. 40.858 of February 29, 2016. Said decision established that the State Courts of Appeal of the Contentious-Administrative Jurisdiction are the ones that have competence to take cognizance of the administrative acts issued by the Tax Administration with an authorizing character (such as the licenses for sale of alcoholic drinks).

 

The Political-Administrative Chamber deviates from its criterion sustained in Decision   No. 00853 of July 11, 2012 (Case: Proveedores de Licores Prolicor, C.A.), which had established that the renewal of a license for sale of alcoholic drinks is an administrative act issued by the Municipal Tax Administration, the juridical effects of which are established in the Organic Tax Code of 2001, which is applicable by reason of time; the rules of said Code provide for the types of penalties to be applied to the taxpayer of the tax juridical relationship when the taxpayer is liable for any violation contained in article 108 ejusdem, which article embodies all violations contained in the different laws on revenue stamps. Then, the Courts of Appeal for Contentious Tax Matters are the ones with competence over the acts or actions that affect in any manner whatsoever the rights of the parties under the authority of the administration and that have juridical effects prescribed in the Organic Tax Code or in any tax law, given that they are the courts that hear the claims (appeals or actions) filed against the National, State or Municipal exacting entity.

Thus, the Political-Administrative Chamber adopts again the criterion set in Decision No. 00515 of March 2, 2006 (Case: Distribuidora de Licores Cuicas, C.A.), with respect to the administrative nature of the acts that, for instance, deny the issue of the License for  Sale of Liquors, since it establishes that the declaration of will contained in the act appealed  by FYT 2006, C.A. constitutes an administrative act with effects on specific parties, derived from an activity ruled by the Administration - that consists in the issue of the permit for sale of alcoholic drinks - it does not constitute an administrative act with a tax content that determines or assess taxes or imposes penalties for tax-related unlawful acts; on the contrary, it is essentially administrative  with an authorizing nature; therefore, it must be reviewed at first instance by the State Courts of Appeal of the Contentious Administrative Jurisdiction (now Courts of Appeal with competence over Contentious Administrative Matters) and at the appeal level by the National Courts of the Contentious Administrative Jurisdiction (still called Courts for Contentious Administrative Matters).

Finally and in relation to the application in time of this criterion, the Chamber established that it will be applied to future cases, in order to guarantee the principles of lawful trust  and reasonable expectation. However, in this specific case, it applied the readopted criterion since it does not affect the subjective juridical sphere of  FYT 2006, C.A., but it benefits said company, all in accordance with the criterion sustained by the Constitutional Chamber in Decision No. 968  of July 23, 2015 (Case: Textiles Zanzibar, C.A.).

 

In order to access Decision No. 00121, please click here

 

 

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