Tax liabilities – concepts, forms of formation, forms of expiry

Against the background of the dynamic phenomenon of detailed tax law, general tax law should be stabilised over a longer period of time, and also clear, consistent and non-controversial in doctrine and jurisprudence.

This study discusses the concepts of tax liability, tax liability, combined monetary liability, ways of creating tax liability. The article also sets out the general characteristics of how tax liabilities will be terminated, taking into account their breakdown into effective and inefficient.

These are basic concepts of the Polish tax system. In the study, in addition to presenting the essence of these concepts, attention is also paid to their correlation and the importance of this system.

The analysis also uses the rich achievements of doctrine, consisting of comments, monographs and scientific articles published in law journals, and refers to extensive court case law.

1. Introduction

The content of the tax system and its individual elements – taxes is a result of centuries-old evolution, in which social, economic, political factors have so far been of great importance.

The state's system and model, the political programmes of the governing coalitions and the concepts of social and economic development, which determine the need for public money resources necessary to carry out the tasks of the State, have a direct impact on the structure of the tax system and the individual elements thereof, the specific taxes and their specific structural components, e.g.

the subject matter of the tax, the tax base, tax rates, reliefs and exemptions. The tax arrangements in force during the period so-called general and detailed tax law determine the directions and pace of economic development and the corresponding level of social needs and thus result in the development of society.

For these reasons tax law is the subject of frequent changes, both ad hoc and aimed at achieving strategic objectives over longer periods.

Without doubt, changes in tax law in Poland should lead to simplification of tax structures and greater transparency of the tax system, a reduction of tax burden on taxpayers while increasing the revenue to the state budget, speeding up economic growth and meeting different social needs.

Often these objectives are contradictory, and also inconsistent, and the effects of tax reforms do not appear in a short time, but only after a few or even a few years.

The normal definition of terms of obligation and tax obligation is a consequence of the existing rules introduced in the Constitution of the Republic of Poland 1 , namely the principles of universality of taxation and exclusivity of the Act under tax law.

Furthermore, taxes, which are a legal and economic institution, are an essential source of income in the State, and it is therefore important to specify precisely what a tax liability is when it expires and when the tax creditor is no longer able to enforce the claims.

The purpose of this study is therefore to analyse the above concepts, to identify their interdependencies and to consider the need to modify the normative definitions of the obligation and the tax obligation by recourse to the elements of the liability relationship in civil terms, such as the creditor and the debtor.

2. Meaning of tax liability

Act of 29 August 1997 - Tax Ordinance 2 ((c) lay down in its content the legal definitions of the tax obligation and tax obligations. The concepts of this obligation and obligations relate to basic tax law institutions. They apply to all taxes.

Tax Ordinance, which is intended to act as a codification function of general tax law, should include in its content the definitions mentioned herein. The Polish tax law does not define the tax obligation until the end 1997 There is a clear relationship between the tax obligation and the tax liability.

Without a tax obligation, no tax liability can arise[3]. There is originally a tax obligation and the result is a tax liability which should result from that obligation.

According to the statutory definition, the tax obligation is the general tax obligation resulting from the occurrence of an event described in the Act.[4]. The essence of this concept is identified with the obligation to pay tax. Unlike the tax obligation, this obligation is not specific. The tax obligation does not apply to the fixed amount of the tax liability. Thus, although it is defined by the payment of the tax, the direct consequence is not the formation of a tax debt[5].

In practice, there is a broader understanding of the concept of tax liability than that contained in the General Tax Code. In Polish, the obligation is identified with duty, so in a broad sense the concept of tax obligation is related to all obligations caused by the occurrence of an event described in the tax law.

This statement may indicate that these are both substantive and formal obligations, also called procedural obligations. However, given the nature of the tax obligation within the meaning of the legal definition contained in the Public Procurement Law, it consists solely of a material obligation, i.e.

an unconcerned obligation to meet the cash benefit, i.e. tax. The tax obligation arises from the law itself, due to the occurrence of an event described in the Act. It can be concluded that the legal definition of the tax obligation itself is not very precise because it is formulated without a clear reference to the concept of "tax" 6 .

Only from 2003 The tax obligation to tax laws applies explicitly. However, the wording, "mandatory cash provision" is identified with the public tax and thus with the tax.

The tax law is defined as a law governing the rights and obligations of tax authorities, taxpayers, payers and collectors, legal successors and persons. third[7].

This definition has been extended since 2003 by clarifying the content of the tax law, since that regulation should cover taxes, levies and non-taxable budget receivables, determine their entity, subject matter, create a tax obligation and the tax base.

Since only the tax law can be the source of the tax obligation, in the current state of the law self-taxing of the inhabitants of the municipality cannot be considered a tax. It constitutes a budget provision, a non-taxed public tribute, which is directly due to a legislative referendum.

Self-taxing of residents of the municipality is not subject to a tax obligation.

It can be noted that the restriction of statutory exclusivity for the legal regulation of the formation of a tax obligation 8 implements the constitutional principle[9]. The tax law can only be regarded as a source of a tax obligation if it contains legal standards, in which hypotheses are described in a general legal manner by the tax facts, and at the disposal of the regulations the duty to pay the tax to the State Treasury or local government is determined.

The addressee of the tax obligation is a certain category of entities, not a closely marked and individualised taxpayer. In contrast to administrative acts which are characterised by the specificity of the entity and the legal standard in question, which creates a tax obligation is general.

The direct consequences of a tax obligation mean that the addressee must act as required by the statutory standard.[10]. These obligations are of an instrumental and procedural nature. The obligation to pay tax advances pending the calculation of the tax due and the formation of a tax liability is an exception.

The obligations that arise directly from the tax obligation determine the sound and correct calculation of the tax debt, resulting in a tax liability.

The solution adopted by the legislator in the definition of the tax obligation is criticised in literature, due to incorrect language design Article 4 As a result of the adopted design of this provision, the tax obligation is mainly associated with the concept of payment and does not take into account the legal relations consisting of both the taxpayer's obligation to pay and the taxpayer's claims, e.g. overpayment, loss or reimbursement.

According to the legal definition of tax liability, this is a tax obligation on the taxpayer to pay tax to the Treasury, voivodship, county or municipality in the amount of, within the time limit and at the place specified in tax law[11]. This definition is universal in nature and refers to all provisions of the general tax law[12].

The tax liability is specific. This characteristic distinguishes them from the abstract tax obligation. The specificity of the tax liability therefore concerns, as indicated above, the following elements: the taxable person, the amount of the benefit, the time limit for payment and the place of fulfilment of the benefit[13].

A tax liability creates an obligation for taxpayers to pay the tax and for the tax authority to request, accept or enforce the amount due by the means of coercion envisaged[14].

In this sense, it is not a tax liability loss 15 , and the definition of the tax liability indicates that the tax liability is identified with the tax[16]. However, in the author's assessment, the WSA's thesis cannot be accepted because the concept of tax liability cannot be identified with the concept of tax. Tax liability cannot be based on presumptions and extensification interpretations[17].

In the doctrine, the definition of the tax liability in Sp. o. is also assessed critically because the unknown concept (tax liability) is defined by another unknown concept (commitment).

The definition of a tax liability therefore applied excessive simplification as the tax liability was incorrectly brought only into the category of a cash benefit, while it should be identified with different derivative obligations related to such a benefit[18].

It is necessary to distinguish in the legal structure the tax liability of the institutions of powers and obligations. Each obligation creates a bond of power and obligation, which, under a tax obligation, automatically becomes public-law by combining with the competence of the tax authority and the competence of the passive entity[19].

Therefore, the essence of the tax obligation is to specify the tax obligation previously created. The biphasism of tax law is visible here. first the phase is linked to the establishment of a legal relationship – an obligation resulting from the existence of a tax factual situation. In the second Whereas the stage is to transform the general powers and obligations into a specific rule, namely a tax liability.

3. Total cash liability

It is also worth describing the nature of the tax obligation to analyse the concept of the combined monetary liability.

Where a natural person is a payer of a property tax and is subject to a tax obligation in the field of agricultural tax or at the same time in the area of forest tax, or both, and where the tax items are located in the same municipality, the relevant municipality body, at the request of the taxpayer, shall determine the total amount of the tax liability due, which is collected in the form of an aggregate monetary liability.

Thus, agricultural and forestry taxes on real estate that are owed by a natural person for a given tax year are collected in the same municipality in the form of a total cash liability[20]. It should be stressed that this is only about benefits for the budget one municipalities.

Only agricultural tax taxable persons who also pay forest tax or property tax or both may pay a total cash liability. Normally, the total cash liability is executed on the basis of a payment order by the collector’s municipal council designated in the resolution[21]. This order is a dimensional decision 22 , where more than one tax.

With the co-ownership of land, it may be exposed to any of the co-owners, unless the agricultural holding runs in its entirety one of them 23 , and an order should be issued to the farmer[24].

There are legal consequences of service of the order at least one of co-owners, since the principles of joint liability can be applied after the decision has been served even one of them. The tax authority may require all or part of the benefit (tax) from all debtors together, from several of them, or from each individual.

Under the rules of joint liability, the satisfaction by any of the debtors relieves the others of the debt. However, until the full satisfaction of the creditor, all the debtors of the joint creditors remain obliged to repay all the claims[25].

The present situation is a derogation from the principle which can be derived from the General Court. 26 . Tax payers are jointly and severally responsible, who have been served with a decision establishing the amount of the tax liability.

In addition to the name of the addressee of this decision, which is a co-owner, the names of all the co-owners of the property should appear, since this obligation is shared between all co-owners. According to the author, there may be some doubts as to whether a tax liability was created for the person not served.

An agricultural tax taxpayer is, among others, a natural person who owns or owns land: agricultural land, wooded land or bushesed on agricultural land[27]. Where a natural person liable to pay the tax is established, the ownership of land included in the farm shall be determined.

The Tax Act did not introduce any additional conditions 28 , It does not therefore matter whether the taxpayer has been exempted from the tax obligation[29].

It follows that the owner of agricultural land exempt from agricultural tax and the person liable for payment of property, forestry or both taxes should be required to issue a payment order for a total financial liability, since even the person who benefits from the agricultural tax exemption is the taxable person of that tax.

The issuing of a payment order to a deceased person causes that such a decision is not addressed to the party to the proceedings. This constitutes a condition for annulment of the decision[30]. For natural persons, the tax liability in agricultural, forestry and real estate taxes arises by the service of the determining decision[31].

The issuing of a payment order alone must not result in such a decision being placed on the legal market[32]. Lack of effective service means that no obligation arises and no tax arrears may exist.

In this situation, it is necessary to determine who is required to pay the tax in a given tax and to deliver the decision to the relevant entities (owner or holder).

4. Establishment of a tax liability

These are described in the General Court. two Ways of establishing tax obligations[33]. As already explained, these are ways of transforming the tax obligation into a concrete tax obligation.

first of these, which most often occurs in practice, are characterised by the fact that the tax authority does not participate in the establishment of the undertaking.

It is sufficient that an event with which this tax bill binds to the formation of an obligation and the obligation arises by law on the date of the occurrence of the event[34].

second the way in which the decision of the tax authority determining the amount of the obligation is to be notified to the entity concerned; the date of such decision shall be the date of the commitment. The law governing a specific tax determines which of the methods apply.

The tax liability is dependent on the existence of a tax obligation and cannot therefore arise if there is no tax obligation[35]. The dependency resulting from this is: not every tax obligation will result in a tax liability. However, any tax liability is a normative consequence of a tax obligation[36].

The tax obligation should therefore result from a tax liability and a tax obligation must be established in order to establish it. The tax liability is considered to be, as the legal predecessor, a tax liability. 37.

first The above-mentioned methods therefore concern the situation where tax legislation requires the taxpayer to make a declaration. Then the tax indicated in the declaration is the tax to be paid[38].

This way of establishing tax obligations is referred to in simplification, as has already been mentioned, as being legally enforceable" 39 . It might suggest that second the way tax obligations are created, i.e.

on the date of delivery of the decision setting out the amount of the obligation, is not a way which is based on legal provisions and thus an illegal way[40]. The term ,,from the power of law’ is a certain abbreviation which is relatively often used in writing 41 , the case law of the courts.

It replaces the fuller definition (statement) descriptive: ,,a tax liability arises from the date of the occurrence of an event with which the tax law binds such an obligation.’ second the nature of the tax liability relates to that arising until the date of notification of the decision of the tax authority determining the amount of that liability.

Each of the statutory ways in which tax obligations are incurred is legal, and the choice between them is made by the legislator determining the legal elements of the tax structure[42].

first the way tax liabilities are created is definitely dominated by the Polish tax system. It applies to taxes of the most important fiscal importance, as well as the most complex legal structure. This creates tax obligations, among others, in: excise tax, goods and services tax, game tax, personal income tax, tax on the extraction of certain minerals, corporate income tax.

This means that the taxpayer should calculate the amount of the tax (or the payer) and make the payment within the time limit[43]. The taxpayer (payer) is therefore obliged to know the provisions of tax law, the correct interpretation of the rules and the correct application of those provisions.

This method is related to the technique of self-calculating the amount of tax by the taxpayer (payer), the so-called self-calculation of the tax[44]. The role of tax authorities is limited in principle to checking the correctness of the taxpayer's (payer's) activities.

The State may maintain low employment in the tax administration, and the tax-related costs may be transferred to the obliged entities[45]. It can be concluded that the specialised and established at least for the fiscal function of the tax administration performs secondary, verification and control activities.

However, for the obliged entity, tax calculation constitutes an incidental activity, at most by-product, it carries out essential tax-related activities and provides the State with the financial resources necessary for its operation. It is for the taxpayer to bear the risk of making an error in the calculation of the tax and of transferring the amount of the tax.

The tax authority shall issue decisions when it finds that the taxable person, despite his obligation to pay in whole or in part, has not made a declaration or the amount of the tax liability is different from that indicated in the declaration.

In that decision, it sets out the amount of the tax liability, also where it states that the amount of the tax refund or the amount of the excess input tax due within the meaning of the legislation on goods and services is different from that indicated in the declaration.

It shall issue a decision determining the correct amount of tax refund or excess tax chargeable[46]. There is, on the other hand, a lack of a legal standard which would authorise a tax authority to issue a decision setting out a tax liability, arising by law at the same amount as the undertaking declared by the taxpayer[47].

The time when the tax procedure is initiated ends with the process of calculating the tax on its own. The tax authority then has the power and obligation to determine the correct amount of the tax liability. The submission of an amendment declaration after the opening of the tax procedure has no legal effect[48].

The decision taken by the tax authority under this procedure is merely of a declaratory nature[49]. It does not create new legal situations, but states that they will arise from the law itself 50 since the event occurred, i.e. ex tunc effect[51].

Since the taxpayer was obliged to calculate them correctly and to pay them to the tax authority, which means that the tax liability exists before the decision is taken.

The issue of a declaratory decision may be the result of a verification by the tax authority[52]. Such a decision may not be taken in relation to the tax liability arising from the service to the taxable person of a constitutional decision establishing the amount of the obligation[53].

The determination of the tax liability and the determination of the excess tax in a declaratory decision is not possible without a tax liability of the correct amount and a comparison of it with the amount shown by the taxpayer in the declaration and the degree of compliance with this separate settlement, but, in combination with the amount declared and paid by the taxpayer, allows the determination of the tax arrears or the finding of the excess payment[54].

The sine qua non condition for a declaratory decision is that the tax is not paid within the time limit and therefore the tax authority cannot issue decisions specifying the tax itself. This would de facto be a decision establishing, and therefore contrary to the way in which the tax liability arises[55].

second The way tax liability arises, as previously noted, is linked to the tax authorities' adoption and service to taxable persons of decisions of those authorities where the amount of tax liability is determined[56].

Since the service of these decisions has a legal effect which involves the formation of a specific tax relationship, those decisions are of a constitutional nature[57]. The tax measure is therefore also of a constitutional nature. The tax obligation cannot become a tax liability without a dimensional decision being issued and served.

The creation of a new non-existent tax obligation is the result of such a decision being served. This service creates a new legal relationship between a tax creditor as an entity entitled to demand payment of tax (State or municipality treasure) and a tax debtor as an entity liable to pay a tax (tax collector)[58].

For example, a constitutional decision is a decision on the tax liability of the taxpayer's heir, the successor to the heir with tax liability[59]. Decisions fixing the property tax to individuals are of the same nature[60]. The nature of the tax decision, i.e.

whether it is a constitutional or a declaratory decision, is not determined by the linguistic convention adopted in the legislation, i.e. the use of the terms ,,,determination’ or ,,determination’ of the tax obligation, as the legislator is not consistent in this respect; the legal substance of the tax is decisive.[61].

If, in accordance with the provisions in force, a tax liability arises under certain legal conditions, the tax authority may, in respect of such an obligation, only issue a decision of a declaratory nature.

On the other hand, where a tax liability can only be created by issuing and delivering a constitutional decision, the possibility of issuing a declaratory decision is excluded in respect of such an obligation.[62].

The designation of the decision ,,determining’ or ,,determining’ is only a more or less consistent application of the adopted language convention[63].

In the Polish tax system it is far less important to issue and deliver a decision establishing – as a way of establishing tax obligations. It includes inheritance and donation tax and property tax, and if the taxpayer is a natural person, it is an agricultural and forestry tax.

This method is also applied in flat-rate income tax paid in the form of a tax card, in flat-rate income tax on income generated by spiritual persons, in income tax on natural persons in the event of taxation of income not disclosed by the taxpayer or of non-disclosed income sources, and in respect of taxation of income from special agricultural production departments when tax books are not kept[64].

Proper service of the Constitutional Decision is necessary for the formation of a tax liability. However, only such a decision, without being served, does not give rise to a tax liability[65].

When applying this method of tax liability (after the taxpayer has disclosed the tax obligation – usually by submitting a tax return) it is for the tax authority to correctly interpret and apply the tax law 66 to determine the amount of tax liability to be paid by the taxpayer[67].

The amount of the tax liability shall be determined in accordance with the data contained in the declaration when the taxable person was obliged to submit it.

Provided that the specific provisions provide otherwise for the determination of the amount of the tax liability or during the tax procedure, it was found that the data which are included in the declaration and which may affect the amount of the tax liability are incompatible with the facts of the case.[68].

The declaration shall be made in the event of conditions for the formation or modification of the tax obligation.

Failure of the taxpayer to comply with this obligation will entail the authorisation of the tax authority to carry out the tax assessment on the basis of the data resulting from the previously submitted declaration, even if these data no longer correspond to reality[69].

The tax obligation will not become a tax liability if the tax authority fails to deliver a constitutional decision to the taxpayer in due time. The date of notification of the decision is the date of the tax liability.

Therefore, a tax liability does not arise if the decision establishing that undertaking has been served after 3 years from the end of the calendar year in which the tax obligation arose.

The tax authority therefore has 3 years from the end of the calendar year in which the tax obligation arose for the adoption and service of the determining decision. Failure to comply with the decision within that time limit causes the right to issue the decision to expire and the tax liability does not arise at all.

In this situation, the taxable entity will not be required to pay a certain amount of tax.

At the same time, the limitation of the right to issue a decision fixing the limitation of public debt, which is a tax liability, should be distinguished. Limitation of the right to adopt a constitutional decision means the absence of the possibility of a tax obligation to which individual administrative acts need to be served[70].

The limitation of the tax liability results in the expiry of an obligation already created[71]. Both statute of limitations are two various tax law institutions which cannot be identified[72].

Before expiry of the limitation period, the decision of the authority must be served on the taxable person first instances, not the decision of the authority second an instance that does not create a new tax obligation, but only corrects the already existing obligation[73].

The limitation period shall expire irrespective of the reason for failure to deliver a constitutional decision to the taxable person[74]. This limitation applies only to constitutional decisions and does not cover declaratory decisions[75].

The limitation of the right to adopt a constitutional decision must be preceded by the determination of the entity to which the decision was to be addressed and the time when the tax obligation was to arise.[76].

Tax Ordinance makes the time limit for payment of the tax dependent on the formation of a tax liability[77]. The payment deadline shall be 14 days from the date of notification of that constitutional decision, if the tax liability arose from the date of notification of the constitutional decision.

It should be noted that the views of the courts differ with regard to the nature of this standard because In one of judgments it was accepted that it was a procedural provision, not a substantive law[78].

In another case, it was assessed that the period indicated 14-day is a substantive statutory term, whose failure to pay due to tax arrears and the obligation to charge interest on late payment[79].

Where an event is the beginning of a period specified in days, the date on which the decision was served shall not be taken into account in calculating that period. 80 ; the expiry of the last of the days prescribed shall be considered as the end of the period. Unless the last day of the deadline is Saturday or public day 81 free from work – then the last day of the term is considered the next day after the day or days off from work.

If a tax liability arises due to the occurrence of an event regulated by the tax law, the final date for payment shall be the date on which the payment is to take place under tax law. This means that within the time limit 30 April the year following the tax year, the taxable person shall make the final settlement of personal income tax. The time limits for the course of payment of the tax shall also apply where the taxable person is obliged to calculate and pay the tax himself.[82].

5. Characteristics of the forms of termination of tax obligations

Tax Ordinance contains a closed catalogue of acceptable ways of terminating tax obligations. In relation to the catalogue contained in the Tax Obligations Act, this catalogue has been expanded more.

New forms have emerged that take greater account of the mutual interests of the taxpayer and the tax creditor and allow them to adjust the manner in which the tax obligation expires to the circumstances of the situation.[83]. The entry into force of the O.P.

was combined with the unification of the creditor rights of the Treasury and the municipality. Until now, tax obligations towards the municipal budget have effectively expired only by paying the tax, and the tax settlements with the State Treasury have also used the deduction and acquisition of the taxpayer's assets.

At present, the Treasury and local government units are entitled to apply the same measures which lead to the expiry of the tax obligation. The tax liability of the entity bearing the economic burden of the tax expires in whole or in part[84].

In the current state of the law, the statutory catalogue includes the following ways of terminating tax obligations 85 :

• 1) payment;
• 2) tax collection by the payer or collector;
• 3) the deduction;
• 4) Overpayment or tax refund;
• 5) failure to collect;
• 6) transfer of property ownership or property rights;
• 7) acquisition of property or property rights in enforcement proceedings;
• 8) remission of arrears;
• 9) limitation;

1. exemption from payment on the basis of Article 14m 86 (exemption from the obligation to pay in the event of an interpretation, subsequently amended or not taken into account in the settlement of the tax case, to the extent that an event is the subject of the interpretation; this results from the principle of non-injury to an entity applying the official interpretation of the tax law 87 );
2. the acquisition of the inheritance entirely by the State Treasury or the local government unit established by the final decision to establish the acquisition of the inheritance, with effect on the date of opening of the inheritance.

All ways of terminating a tax liability are self-contained and mutually exclusive[88]. Before 1 January 2003 The catalogue of ways out of tax liability was not a closed catalogue as it did not mention the tax refund as one of the ways in which the tax obligation expires[89].

The effective expiry of tax obligations, which leads to the satisfaction of the claims of the tax creditor and the ineffective expiry of those obligations, can be distinguished when the obligation expires without the satisfaction of claims.

Such an effective way of terminating the tax obligation is to pay, collect tax by the payer or collector, deduct, charge an excess, charge a refund, transfer of property or property rights and take over property or property rights in enforcement proceedings.

On the other hand, the ineffective way of terminating the tax obligation is to clear the arrears, the limitation period, the omission of collection and the exemption from the obligation to pay should the tax rules be interpreted.

The obligations of tax entities that do not normally bear the economic burden of the tax shall, in whole or in part, expire as a result of: payment, overpayment or tax refund, redemption, acquisition of property or acquisition of property in enforcement proceedings, limitation, exemption from the obligation to pay in the event of an interpretation, subsequently amended or not taken into account in the settlement of the tax case, in so far as the event in question arises (which results from the principle of non-injury to the person applying the tax law)[90].

The temporary effect of the expiry of the tax obligation is the need to cancel the ongoing tax proceeding. In particular, it is unacceptable to initiate and conduct proceedings to determine the amount of the tax liability[91].

6. Summary

The representatives of the doctrines demand that O.P., which is part of the general tax law, reflect the functioning of the entire tax system.

Definitions of both the obligation and the tax obligation should therefore be created using the elements of a mandatory legal relationship in a civil sense by referring to concepts such as creditor, debtor, debt and debt.

In addition, there is a demand in the doctrine to replace the concept of tax duty – mainly associated with the obligation to pay – with a broader concept that may also apply to the taxpayer's claims. Tax law should formulate concepts as precise as possible, without causing controversy in the process of its application.

Otherwise, the provisions of this law will be difficult to interpret for both tax authorities and taxpayers.

It should also be pointed out that O.P. contains a closed catalogue of permissible ways of terminating tax obligations, which certainly serves to stabilise and secure civil relations between the taxpayer and the tax creditor.

Before 1 January 2003 it was not a closed collection because it did not mention the tax refund as one of the ways of terminating the tax obligation.

As a result of the full definition of the ways in which tax obligations are terminated, there is no longer any doubt as to whether the tax liability expires in a way other than those mentioned in the Act. All of the ways in which tax obligations are terminated are intrinsic and mutually exclusive.

This is a transparent solution for the tax authority, as well as for a taxable person who cannot expect the obligation to expire in any other way. The entry into force of the O.P. was combined with the unification of the creditor rights of the Treasury and the municipality.

Previous tax obligations to the municipality's budget were effectively terminated only by paying the tax, while the deduction and acquisition of the taxpayer's assets were also used in tax settlements with the State Treasury.

The State Treasury and local government units are now entitled to apply the same measures leading to the termination of the tax obligation. There is the most extensive regulation from the existing one concerning the deduction.

The application of the deduction institution to taxes constituting the income of the municipal budget has been restored, which is a very good solution. A closed catalogue of claims by the taxpayer towards the State Treasury, from which the deduction may occur, was also introduced.

The limitation of tax obligations is an orderly and stimulating function and is an instrument of legal certainty, since the powers and obligations not exercised within certain time limits should be repealed.

At present, the tax authority can waive all or part of the tax arrears, but only exceptional circumstances can lead to a derogation from the principle of paying taxes, as the principle of equality between taxpayers and tax justice is demonstrated by a uniform system and a time limit for paying taxes.

The tax payment, which is the taxpayer's primary duty, is crucial in the implementation of obligations. It is worth noting that there is no normative definition of the concept of "tax payment". This is undoubtedly the cause of the differences in interpretation, particularly concerning the so-called special forms of tax payment.

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