NOTICE OF CHARGES (TRASLADO DE CARGOS)
PROCEDURE TO BE FOLLOWED UPON RECEIVING A NOTICE OF CHARGES

a) Examination of the facts and legal terms of the Traslados de Cargos (Notice of Charges)

If the regulatory proposal is not accepted by the taxpayer, the Tax Administration officialy summons a Notice of Charges (Traslado de Cargos). Technically speaking, this means that the governmet is officially filing charges against the taxpayer. However, this accusation must comply with legal formalities regarding the basis and facts of the accusation in order to be valid. In the event that the notice of charges (Traslado de Cargos) is based on a wrong interpretation of the fiscal legislation; a careful analysis must be conducted in order to determine the legal grounds of the facts and the evidence held by the Administration. Finally, a thorough examination of the supporting laws used by the Administration in the notice of charges is conducted.

b) Examination of the evidence that supports the notice of charges (Traslado de Cargos)

One of the arguments that the taxpayer may plead against the Notice of Charges (Traslados de Cargos) concerns the supporting facts of the proceedings. A number of guidelines have been issued by the administrative and judicial authorities in order to regulate the way in which the evidence must be incorporated and processed in the administrative file of the taxpayer. The absence of any of the basic elements of the Traslados de Cargos will turn the procedure null and void.

c) Objecting the Traslado de Cargos

The taxpayer may dispute the charges held against him/her within 30 days upon being served of the Traslado de Cargos. The motion should be based on legal grounds; also, it is very important that the charged party states all the discharging arguments from the begining, even though all the aspects on dispute might not be analyzed in depth.

d) Motioning for a reversal order and appeal of the administrative decision

Wether the taxpayer accepts the regulatory proposal or not, the Administration must issue a resolution called Resolución Determinativa. As with the Notice of Charges, the administrative resolution must be based on legal and factum grounds. Legal remedies (reversal and appeal) are permited if the resolution lacks one or several of its elements. If the Administration reverses its ruling, the dossier is shelved. In case of denial of the petition, the taxpayer motions to the higher administrative court. The petition must be submitted before the Fiscal Administrative Court within two months after its implicit denial (i.e. the Administration did not answer the petition), counting from the day the reversal was filed.

e) Furnish of evidence before the Fiscal Administrative Court

After the appeal has been filed in, the Fiscal Court calls for an audience to furnish the evidence. In the hearing, all the evidence must be presented orally and the procedure follows the rules set in the Tax and the Civil Procedures Codes.