IN ORDER TO BIND PEOPLE RESPONSIBLE BY REPRESENTATION TO THE ADMINISTRATIVE ENFORCEMENT PROCEDURE, THEY MUST HAVE BEEN NOTIFIED WITH THE ADMINISTRATIVE ACT OF DETERMINATION

By Resolution No. 12-2024, the National Court of Justice established the following binding jurisprudential precedent:

“The act will not be effective nor the linkage in the administrative enforcement procedure legally viable, with respect to those responsible by representation (joint debtor), when the notification to them of the administrative acts of determination whose collection is pursued had been omitted, since due process is violated, in the guarantee of the right to defense”.

Article 27 of the Tax Code establishes that the following people are responsible by representation and liable up to the value of the assets administered by them and that of the income produced during their management:

1. The legal representatives of unemancipated minors and the tutors or curators with administration of assets of other incapable people;
   
   
2. The directors, presidents, managers or representatives of legal entities and other collective entities with legally recognized personality;
   
   
3. Those who direct, administer or have the availability of the assets of collective entities lacking legal personality;
   
   
4. The mandataries, informal agents or voluntary managers with respect to the assets they administer or dispose of; and,
   
   
5. The receivers of bankruptcies or bankruptcy proceedings, the representatives or liquidators of companies in liquidation, the judicial depositaries and the administrators of other people’s property.
   
   

The resolution, which has the force of law, states that the collection of a responsible by representation cannot be pursued in a coercive collection process, when such collection is based on an obligation which determination process was pursued exclusively against the taxpayer without having notified the responsible by representation. In other words, if the person responsible by representation was not notified in the administrative enforcement process that determined the obligation, they cannot be held jointly and severally liable for the payment thereof.

© TobarZVS 

This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.