The government has ordered the Treasury to comply with the law and make sure it publishes answers to tax questions posed by members of the public.
This should mark an end to the policy of deliberate confusion adopted by parts of the Tax Authority whose responses to those seeking clarification of the country’s often complex tax regulations have not been disseminated on ‘confidentiality’ grounds.
Fernando Rocha Andrade, in one of his last acts as Secretary of State for Fiscal Affairs before losing his job in July over the Galpgate tickets affair, called for answers to tax questions that have not yet been published, to be collated and published. Andrade said he wanted the publication of all tax query replies, except when questions were duplicated.
The new push for compliance cites 'transparency and open administration,' and opens the door to everyone who should soon be able to read the advice handed out by the Tax Authorities in response to specific questions raised by taxpayers.
The aim is to provide legal certainty to businesses and individuals as to how they should act and plan their affairs. The General Tax Law requires that all responses should be provided within 30 days by electronic means, while "safeguarding the personal nature of the taxpayer."
And in relation to the sensitivity of personal information, the new order by the government says that even though people might conceivably be able to be identified by the question asked, this should not stop the Tax Authority publishing its answer and advice.
Until now, the questions and answers game is in a deliberate mess with the Tax Authority refusing to release answers that other taxpayers might well find useful.
The VAT service does publish information to help businesses but the income tax collectors do not, despite this complex area of taxation being subject to frequent change.
As for property taxation, IMI and IMT information has been subject to years of blackout followed by years of publicity, as in 2016.
Tax Courts are not wont to publish their findings, issuing the same message year after year, "The Information Directorate is waiting for the information to be made available by the respective Directorate of Services."
Hopefully, this nonsense will soon be over and accountants advising clients and businesses will be in a better position to provide an efficient service.
