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Is the statute of limitations in tax matters interrupted by the COVID-19 emergency?
[/vc_column_text][us_separator][vc_column_text]The public health crisis that we are experiencing as a result of the pandemic unleashed by the SARS-CoV-2 virus, better known as Coronavirus, has led Honduras to declare, on February 10, 2020, the state of health emergency provided for in Article 9 of the State Procurement Law, through Executive Decree PCM-005-2020. Among the measures adopted, Decree 33-2020 was issued, declaring all calendar days non-working days for the period in which the emergency declaration originated by COVID-19 elapses. This generates some confusion when determining whether this disqualification of deadlines interrupts the course of the prescription established in article 144 of the Tax Code? Or since this figure is not mentioned in Decree 33-20 or any other current provision issued as a result of the National Emergency due to the COVID-19 pandemic, it should be understood that the passage of time through the continued declaration of emergency due to the COVID-19 Pandemic does not generate any type of paralysis. To clarify the figure of prescription, it is indicated that it occurs by the mere passage of a certain amount of time, allowing the consolidation of certain rights or their loss, without the need for any action. Likewise, Article 11 of the Tax Code states that: "Principle of Legality. It is the exclusive responsibility of the National Congress through tax and customs laws and, consequently, cannot be subject to regulatory power: … 9) To establish and modify the prescription periods." In accordance with the principle of legality, only the forms of interruption expressly determined by law through the Tax Code, which mandates in its article 148, should be applied. In addition to the above, it is indicated that the Revenue Administration Service issued a statement on March 16, 2020, which states “the legal deadlines that have begun to take effect in the procedures initiated at the request of an interested party and ex officio in the Revenue Administration Service (SAR), will be suspended during the period from Monday the sixteenth (16) to the twentieth (20) of March, two thousand twenty (2020), in accordance with the provisions of Article 14, numeral 8) of Decree 170-2016, which contains the Tax Code, in view of the fact that in view of the Emergency Alert issued by the National Risk Management System (SINAGER), public offices and commerce in general will close their doors to prevent the spread of Covid-19” which remains in force. And through PCM-146-2020 dated December 29, 2020, the validity of the Declaration of STATE OF HUMANITARIAN AND HEALTH EMERGENCY was extended until December 31, 2021. This prevents taxpayers from carrying out administrative procedures in tax matters, generating uncertainty for taxpayers who are close to the expiration of their action to request a refund or repetition for taxes, just as the Tax Administration will not be able to determine obligations, impose sanctions and demand payment of the tax debt for fiscal periods that have expired during the period of suspension of deadlines. We can conclude that since the legislator did not regulate the statute of limitations in Decree 33-20 and based on the principle of legality, it should not be understood that the declaration of a National Emergency due to the COVID-19 virus pandemic interrupts the statute of limitations, unless the legislator expressly provides for it. For comprehensive advice on the subject, you can contact the following email address: nfugon@lexincorp.com.[/vc_column_text][us_separator][vc_column_text]
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[/vc_column_text][us_person image=”9339″ name=”Nicole Fugon” role=”Asociada” link=”url:https%3A%2F%2Flexincorp.com%2Fequipo_honduras%2Fnicole-fugon%2F|title:Nicole%20Fugon||” layout=”cards” img_size=”full”][/us_person][us_separator][vc_column_text]*Legal Notice: The general information contained in this document is provided for informational purposes only and should not be construed as legal advice on any of the topics discussed. You should not act or refrain from acting on the basis of any content contained herein without seeking legal or other professional advice. We disclaim any liability for any actions you take or refrain from taking based on any content in this communication.[/vc_column_text][/vc_column][/vc_row]
