C) Tax Administration

  1. Do taxpayers have a right to be presumed to be honest by the tax authority, unless there is evidence to the contrary? In the comment box, can you tell us if the right to be presumed honest is respected by the tax authority?

  2. Can taxpayers use Taxpayer Rights to delay payment of tax or delay disclosure of tax?

  3. Are taxpayers entitled to use reasonable tax planning to pay the minimum amount of tax possible?

  4. Are there limitations on Taxpayer Rights where their use is to obstruct or delay actions of the tax authority without a reasonable basis?

  5. Where there is reasonable cause, are there provisions for...
    1. the relief of interest at the tax authority's discretion?

    2. the relief of penalties at the tax authority's discretion?

    3. an extension of deadlines at the tax authority's discretion?

  6. What constitutes "reasonable cause"? Provide a reference if applicable.

    34 countries provided answers to this question.  Reading the answers, it is very disturbing that there is no common standard to be applied in this matter. A wide range of factors were noted, such as financial hardship, bereavement, force majeure, military service, absence from the country, and so forth. Many countries indicated that this was a question of fact, and depended on the circumstances. Incorrect information supplied by the tax authorities was cited as another reason. It was also pointed out that an affected taxpayer is expected to act in good faith.
  7. Is discretion routinely used by the tax authority? If yes, please describe the main areas where discretion is exercised.

  8. Is the authority to exercise discretion granted by legislation?