The legal nature of income tax assessment methods

Abstract

The legal nature of income tax assessment methods is a fundamental pillar in determining tax liability, as it oscillates between the character of public law and the discretionary power of the administration. These methods aim to transform the taxable asset from its theoretical concept into a specific and collectible financial base, reflecting the state's exercise of its financial sovereignty. Assessment methods vary between direct assessment based on the taxpayer's actual declarations and documents, and indirect assessment based on external appearances or legal presumptions in the absence of data. The tax administration, in exercising these powers, is bound by the rules of legality to ensure non-arbitrariness and to achieve a balance between the rights of the public treasury and the protection of taxpayers' rights. This regulation is mandatory and cannot be deviated from by agreement. Decisions issued under it are subject to the oversight of the administrative and financial judiciary to ensure proper implementation. Accordingly, the legal characterization of these methods represents a sovereign tool that combines economic collection with the achievement of social justice and transparency.