LEGITIMATE EXPECTATIONS OF THE TAXPAYER IN THE CONTEXT OF TAX AND FEE ADMINISTRATION

Author
, lawyer, certified auditor, graduate student of the Department of Financial Law, Ukraine, Kharkiv

In heading

 Law;

Signed print

 25.03.2025

Issues number

 2025 - № 1 (60)

Page

 63-81

Type of articles

 Scientific article

Code UDK

 351.713:336.225.611

ISSN print

 2411-5584

Abstract

 Problem setting. In specific situations of law enforcement, the principles of tax law cannot be considered in isolation from each other. The principles act only systematically and should be analyzed in law enforcement exclusively as a set of requirements, compliance with which is required from both the taxpayer and the regulatory authority. However, given that the legal regime of martial law continues, and the Tax Code of Ukraine has constant changes in regulation, the problem of compliance with the principles of tax legislation and especially the principles of stability and legitimate expectations of the taxpayer is acutely on the agenda.
Paper objective. The purpose of the article is to clarify the content and limits of the application of the principle of legitimate expectations of the taxpayer in the administration of taxes and fees, in particular, in the context of significant quantitative changes in tax legislation under martial law.
Paper main body. The principle of legitimate expectations of the taxpayer is based on the doctrine of the rule of law, the principle of legal certainty, and is widely applied in the practice of the European Court of Human Rights (ECHR) and the Constitutional Court (CC) of Ukraine. The position of the European Commission “For Democracy through Law” is also based on this approach.
Guided by the practice of the ECHR, the СС of Ukraine, and the norms of the Tax Code (TC) of Ukraine, we must state that, given the essence of the principle of legitimate expectations, a taxpayer has the right to expect stability, predictability, and consistency in the actions of government entities representing the state (legislator, regulatory authorities). Therefore, despite the absence of a direct embody of this principle in the TC of Ukraine, it is obvious that: the norms of tax legislation should not change suddenly and unpredictably, and especially retrospectively; the state, represented by authorized bodies, must act consistently and in good faith, both in the context of legislative regulation and approaches to the interpretation of tax and legal norms; the behavior of a taxpayer that complies with the current tax and legal regulation will not be recognized as unlawful over time only due to a change in tax norms or the vector of their interpretation.
Conclusion of the research. Recently, in its modern practice, the Supreme Court of Ukraine has practically ignored the doctrine of legitimate expectations, preferring the formal effect of legislative norms, even if such norms were introduced in violation of other norms of law and destroy established legal approaches. Such an approach puts the taxpayer in a situation of constant legal uncertainty, which contradicts European standards, which are reproduced in the practice of the Constitutional Court of Ukraine. The implementation of the principle of legitimate expectations of the taxpayer requires the state to be consistent, predictable in its actions, provide an appropriate transition period for changes in legislation, and refrain from retroactive effect of new norms that may negatively affect the legal position of the taxpayer.
Short abstract for an article
Abstract. The content of the principle of legitimate expectations of the taxpayer in the administration of taxes and fees in the context of the operation of the tax legislation of Ukraine under martial law is considered in the article. It is substantiated that this principle, although not directly embody in the Tax Code of Ukraine, follows from the content of the principles of the rule of law and legal certainty. The legal positions of the European Court of Human Rights and the Constitutional Court of Ukraine, which recognize legitimate expectations as an integral element of a democratic state governed by the rule of law, are analyzed. Contradictions in the law-enforcement practice of the Supreme Court of Ukraine, in particular, in resolving tax disputes, are considered. It is shown that the Supreme Court of Ukraine is increasingly departing from the principle of legitimate expectations, preferring formalism and literal interpretation of norms. The example of case No. 200 / 4768 / 23 shows how the Supreme Court changed the established practice regarding the application of the «quarantine» moratorium and changed the limits of the taxpayer»s liability retroactively. The judicial argumentation regarding the non-application of the principle of legitimate expectations in martial law conditions is criticized. It is emphasized that even in emergency situations, the payer has the right to count on the good faith of the state. The need for real, rather than declarative, application of the principles of tax legislation is argued.

Keywords

 tax legislation, tax legal norms, principles of tax legislation, regulatory authorities, tax dispute, law enforcement, interpretation, Constitutional Court of Ukraine,
Supreme Court, legal position, martial law.

Reviewer

External reviewer

Article in PDF

 Economic Theory and Law, 1-2025-63-81

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Code DOI

 https://doi.org/10.31359/2411-5584-2025-60-1-63

This post is also available in: Ukrainian

25.03.2025