Formal Tax Law

Formal Tax Law forms the undeniable vital part of any nation’s fiscal framework. Formal tax law stipulates the exact scope and restrictions of the formal regulations, which enforce the collection of taxes owed under federal law. In the formalization of the material tax assessment, the rules of the game need to be taken into account by both the taxpayer and the presiding tax collectors office. The disciplinary measures that the tax authorities can impose in the case of non-compliance with federal law and regulations, consist of issuance of a fine, reversal of the burden of proof (E.g. in the case of withholding information), and criminal justice. Concurrently, the taxpayer also has an essential role to play in the safeguarding of an adequate progression of the fiscal process and collection of taxes. In this regard, it is pivotal that the taxpayer assesses whether or not the tax authorities have engaged in repressive action within the time promulgated in the applicable section of the law. Consequently, in the event that the tax authorities violated the procedural requirements, the formalization of the material tax assessment is obstructed, if the taxpayer chooses to appeal against the formalization and subsequent tax collection.

“Justice in the life and conduct of the State is possible only as first it resides in the hearts and souls of the citizens.”

Plato (427 BC – 347 BC), Greek philosopher

Van Clamsfield International Ltd. offers detailed information and sound advice on the following issues:

1. Evaluation of procedural rights and procedural requirements for both taxpayers and tax authorities;
2. Determination of the scope and restrictions of the authority of tax controllers (IRS);
3. Regulations surrounding exit (emigration) taxation, protective assessment and deferral of payment;
4. Procedures governing tax return requirements, content requirements, and the information obligation to the IRS;
5. Policies regarding reversal of the burden of proof, penalty’s and criminal indictment;
6. Assessment of technical conditions and statutes of limitations concerning tax authorities’ rights to impose an additional tax assessment notice or a revised tax assessment notice;
7. Management of unwritten protection measures of taxpayers: legitimate expectations, legality principle, the principle of equality and the una-via principle;
8. Verification of formal protection terms of taxpayers: proper proportion principle, motivation principle, fair play, carefulness principle, and the principle of ‘détournement de pouvoir’;
9. Examination of pledges made by the tax authorities and binding force of commitment obligation IRS in case of the provision of incorrect information;
10. Explanation of tax authorities’ fiscal privileges, specific regulations with regard to a protective garnishee order and legal responsibility.

Van Clamsfield International Ltd. also provides guidance in other subsequent fields of formal tax law, known as fiscal compromise, tax audit assistance, and tax litigation.