Carlos Felipe B.Managing partner and founder
To deny a debt tax and test un done liberating
When the DGII (General Directorate of Internal Revenue) claims a tax , identifying who must prove each fact is crucial. Denying that a taxable transaction occurred is not the same as admitting its existence and maintaining that the tax was paid, withheld, or extinguished. Article 1315 of the Civil Code distinguishes between proving the obligation and proving the fact that releases one from it; this distinction prevents every challenge by the taxpayer from becoming an obligation to prove that nothing is owed.
La Government He must also substantiate his claims.
The presumption of validity of an administrative act does not replace proof of its content. If the adjustment is based on inconsistencies, the Administration must explain and substantiate the facts that justify it. Constitutional Court ruling TC/1363/25 examined this duty with respect to tax inconsistencies and upheld the Supreme Court's decision under review. The documentation held by the tax authorities and the actual possibilities of providing it are important for allocating the burden of proof.
When is it the taxpayer's responsibility to provide supporting documentation?
The Third Chamber of the Supreme Court, in its ruling No. 98 of April 28, 2021, clarified that specific allegations may place the burden of proof for a tax exemption on the taxpayer. This criterion requires examining each case individually; it does not allow for the assertion that the burden of proving the non-existence of the tax always falls on the taxpayer. If a withholding or payment is alleged, it is advisable to provide supporting documentation that links it to the period, the transaction, and the tax in question.
Omissions of information can have consequences
In that decision, concerning income from technical management of construction projects, the intervention of the Ministry of Public Works as a withholding agent was discussed. The Court emphasized that this circumstance did not eliminate the formal reporting obligations. Article 50, paragraph j), of the Tax Code requires the presentation or display of documentation and the provision of clarifications related to the events that generate the tax. Omitting information may influence the analysis, but it does not automatically equate to admitting any debt claimed.
How to prepare a useful response
Organize all tax returns, invoices, contracts, payments, withholdings, and communications received by tax period. Compare each discrepancy noted by the DGII (General Directorate of Internal Revenue) with the supporting documentation and explain what it proves. If a document is in the possession of a third party or the Tax Administration itself, identify it and request its inclusion through the appropriate channels. An organized file allows you to distinguish between a calculation discrepancy, an erroneously attributed transaction, and a tax obligation that did exist but has already been fulfilled.
The claim requires facts, documents, and attention to deadlines.
Before responding or appealing, review the notification you received, the periods it covers, and the actions it requires. Seek accounting and legal guidance to formulate specific objections and maintain a record of the filing. The outcome depends on the evidence and the rules applicable to the case: neither the DGII's assertion is always sufficient to prove the debt, nor does a generic denial from the taxpayer substitute for proof of payment or other exonerating event.