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their obligations regarding taxation. Incomplete accrual of tax or
unlawful return of tax because of misleading declarations of personal,
marital status of familial situation, or other reasons shall also be
deemed as loss of tax revenue.
”
Art. 344 defines a criminal act of the loss of tax revenue: “
Given
that the tax revenue is lost due to the reasons listed under Art. 341, the
taxpayer or the liable person shall be fined with the amount of tax rev-
enue lost. If the loss of tax revenue occurs as a result of an act stipu-
lated under Art. 359, a triple fine shall be applied, and to those who
are complicit in the act, a single fine is applied.
”
Non-compliance is stipulated under Art. 351 et seq. of the TPC.
Accordingly, “non-compliance” means the failure to comply with the
material and procedural rules of tax laws. As a result of the loss of tax
revenue, some tax is evaded; whereas, in the event of non-compliance,
the tax is not yet lost. Instead, through their non-compliance with for-
mal or procedural tax rules, taxpayers, or the liable persons are trying
to create a feasible environment for such loss. Art. 352 et seq. of the
TPC lists the relevant acts of non-compliance and their respective
penalties. These crimes are categorized as 1
st
Tier, 2
nd
Tier, and are acts
that garner a special penalty. The non-compliant acts are penalized in
accordance with the tiers specified in the code and with the table pro-
vided therein. Given that the described act of non-compliance requires
ex officio discretion, the relevant fines shall be doubled. 1
st
Tier non-
compliances are as follows: Failure to make tax payments and fee dec-
larations in a timely fashion; Failure to keep the books deemed neces-
sary in accordance with the TPC; Incomplete, non-compliant, and
unorderly keeping of the books to the extent that they renders a clean
tax audit impossible; Non-acceptance of the invitation made by village
councilmen and community council pursuant to Art. 245, by farmers;
Non-compliance with the rules of bookkeeping set out in the TPC; Not
declaring the commencement of work on time; Failure to certify one of
the books that is required to be certified (Certification that is made 1
month after the legal period has expired shall be deemed non-existent);
Failure to levy a tax, even though the levy period has passed; Declaring
inheritance and transfer tax within the time periods specified under Art.
342/2.
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NEWSLETTER 2015