Process: 366/2019-T

Date: August 9, 2019

Tax Type: Outros

Source: Original CAAD Decision

Summary

Case 366/2019-T addresses the procedural issue of withdrawal from tax arbitration proceedings at CAAD (Centre for Administrative Arbitration). The taxpayer, A... S.A., initially challenged two administrative acts: (i) a decision dismissing administrative appeal no. ...2018... issued by the Head of Finance Service of Vila Nova de Gaia dated 21.03.2019, and (ii) an Additional Municipal Property Tax (AIMI) assessment for 2017 amounting to €4,274.72. The arbitration request was filed on 27 May 2019 under Article 2(1)(a) and Article 10 of Decree-Law 10/2011 (RJAT - Legal Regime for Arbitration in Tax Matters). However, on 08.08.2019, before the Tax Authority (AT) was notified to file its response pursuant to Article 17 of RJAT, the claimant filed a motion withdrawing from proceedings under Article 290 of the CPC (Civil Procedure Code), applicable through Article 2 of CPPT and Article 29 of RJAT. Arbitrator Raquel Franco homologated the withdrawal, noting that no indisposable rights were at issue and nothing in law prevented the withdrawal. The decision established that costs totaling €612.00 must be borne by the claimant, as determined under Article 22(4) of RJAT and Table I of the Regulation of Costs in Tax Arbitration Proceedings. This case demonstrates the procedural flexibility available to taxpayers in CAAD arbitration, allowing withdrawal even after formal proceedings commence, though at the cost of bearing arbitration fees. It confirms CAAD's jurisdiction over AIMI disputes and the straightforward homologation process for voluntary withdrawals in Portuguese tax arbitration.

Full Decision

Tax Arbitration Jurisprudence

Case No. 366/2019-T

Decision Date:
2019-08-09
Other

Value of Claim:
€ 4,274.72

Subject Matter:
Homologation of withdrawal of proceedings.

PDF Version

ARBITRAL DECISION

Arbitrator Raquel Franco, designated by the Ethics Council of the Centre for Administrative Arbitration ("CAAD") to form the Arbitral Tribunal constituted on 08.08.2019, decides in the following terms and on the grounds set forth herein:

A..., S.A., a legal entity no. ..., with registered office at ..., ..., in Maia, filed, on 27 May 2019, pursuant to the provisions of paragraph a) of article 2, paragraph 1 and article 10 of Decree-Law No. 10/2011, of 20 January, which approves the Legal Regime for Arbitration in Tax Matters (RJAT), a request for arbitral pronouncement, in which the Respondent is the AT - Tax and Customs Authority, with a view to annulment of two acts:

(i) Decision dismissing the administrative appeal no. ...2018..., issued by the Head of the Finance Service of Vila Nova de Gaia ..., dated 21.03.2019;

(ii) Assessment of Additional Municipal Property Tax ("AIMI") 2017 ... for the year 2017, in the amount of €4,274.72:

On 08.08.2019, before the AT was notified to file its Response pursuant to article 17 of the RJAT, the Claimant filed a motion withdrawing from the proceedings, pursuant to article 290 of the CPC, applicable by virtue of article 2 of the CPPT and article 29 of the RJAT.

Since no indisposable right is at issue, and there being nothing in law that dictates otherwise, the withdrawal presented is homologated, with costs to be borne by the Claimant.

Costs: Pursuant to article 22, paragraph 4, of the RJAT, the amount of costs is fixed at 612.00 euros, in accordance with Table I annexed to the Regulation of Costs in Tax Arbitration Proceedings, to be borne by the Claimant.

Let this arbitral decision be registered and notified to the Parties.

Lisbon, 09 August 2019

The Arbitrator

(Raquel Franco)

Frequently Asked Questions

Automatically Created

What happens when a taxpayer withdraws from a tax arbitration proceeding at CAAD before the Tax Authority responds?
When a taxpayer withdraws from a tax arbitration proceeding at CAAD before the Tax Authority responds, the arbitrator homologates (approves) the withdrawal pursuant to Article 290 of the Civil Procedure Code (CPC), applicable through Article 2 of CPPT and Article 29 of RJAT. Since no indisposable rights are at issue and no legal impediment exists, the withdrawal is accepted and the proceedings are terminated. The arbitrator issues a formal decision acknowledging the desistência da instância.
What is the legal basis for withdrawing from a tax arbitration instance under the Portuguese RJAT?
The legal basis for withdrawing from a tax arbitration instance under Portuguese RJAT is found in Article 29 of Decree-Law 10/2011 (RJAT), which makes Article 290 of the Civil Procedure Code (CPC) applicable through Article 2 of the Tax Procedure and Process Code (CPPT). Article 290 CPC governs voluntary withdrawal from proceedings, allowing a party to desist from the instance at any stage before final judgment, subject to homologation by the tribunal when no indisposable rights are involved.
Who bears the costs when a taxpayer desists from a tax arbitration case at CAAD?
When a taxpayer desists from a tax arbitration case at CAAD, the taxpayer bears all arbitration costs. Under Article 22(4) of RJAT, costs are fixed according to Table I annexed to the Regulation of Costs in Tax Arbitration Proceedings. In Case 366/2019-T, the costs were set at €612.00, to be borne entirely by the claimant who withdrew. This cost allocation reflects the principle that the party voluntarily terminating proceedings should bear the associated administrative and arbitral expenses.
Can a taxpayer challenge an Additional Municipal Property Tax (AIMI) liquidation through CAAD arbitration?
Yes, a taxpayer can challenge an Additional Municipal Property Tax (AIMI) liquidation through CAAD arbitration. Case 366/2019-T confirms CAAD's jurisdiction over AIMI disputes under Article 2(1)(a) and Article 10 of Decree-Law 10/2011 (RJAT). The taxpayer in this case successfully initiated arbitration proceedings to annul an AIMI assessment for 2017 valued at €4,274.72, demonstrating that AIMI liquidations fall within the scope of challengeable acts before the Centre for Administrative Arbitration.
What is the procedure for homologation of withdrawal (desistência da instância) in Portuguese tax arbitration proceedings?
The procedure for homologation of withdrawal (desistência da instância) in Portuguese tax arbitration proceedings involves: (1) the claimant filing a formal motion to withdraw pursuant to Article 290 CPC, applicable through Article 29 RJAT and Article 2 CPPT; (2) the arbitrator verifying that no indisposable rights are at issue and no legal impediment exists; (3) the arbitrator issuing a decision homologating the withdrawal; (4) determination of costs to be borne by the withdrawing party under Article 22(4) RJAT; and (5) registration and notification of the arbitral decision to all parties, effectively terminating the proceedings.