The discretionary power of the Tax Administration in the Peruvian Auditing Procedure

Abstract

The main objective of this paper is to determine whether the discretionary power of the tax administration has an impact on the Peruvian audit procedure. Based on the recognition that such discretion, exercised within the framework of the State's sanctioning power, must strictly observe the principles of legality, reasonableness and respect for the fundamental rights of taxpayers. Through a qualitative methodology, a literary review of resolutions issued by the Tax Court and the Constitutional Court was carried out, contrasted with doctrinal contributions specialized in tax and administrative sanctioning law. It was evidenced that the tax administration has margins of action that allow it to decide not only on the imposition of penalties, but also on their graduation or modification, as long as the decision is adequately motivated and the legal security of the taxpayers is guaranteed. It is concluded that the exercise of this sanctioning power must be duly delimited and guided by objective, transparent and foreseeable criteria, in order to avoid arbitrariness and strengthen the principle of legitimate trust, in order to contribute to a more guaranteeing interpretation of administrative discretion in tax matters.