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Honduran Tax Glossary 2021 Author: Lic. Juan Edgardo Romero Calderón For a better understanding of the topic of tax classification and other aspects that have to do with tax procedures and fiscal procedures, the interpretation of the basic concepts given in the current Honduran tax code is presented. The idea is that the student can read these concepts, so that they can then interpret them, and integrate them into their vocabulary. A Repetition action: It is the claim to which the taxpayer is entitled once they have made the payment of a tax, penalties or interest unduly - that is, even if they should not pay, they do so - provided that said payment has been made in accordance with the terms of the current tax code and that a tax credit is generated for them - in their favor - even if a legal reserve has not been established at the time of payment. The repetition action can be generated between the state fiscal body and an individual, but also between two individuals who have a relationship regarding the withholding and handling of a tax. Administrative acts: These are the orders and resolutions issued by the offices of the competent tax authority – the Revenue Administration Service or, failing that, the Deputy Directorate of Customs Revenue – in accordance with the rules and processes established in the current tax code. Purchaser: A natural person or commercial company that purchases a good or service for which a tax obligation falls, recognized as a debt in the accounting records of the person selling said good or service. Amnesty: A favor granted to those who owe taxes to the treasury, which entails the total or partial forgiveness of the monetary obligation attached to the debt belonging to the taxpayer. Amnesties may be granted to all taxpayers or to a portion of them, and can only be approved by legislative decree. Voidability: When a legal act is flawed by poor procedure, inconsistencies, or does not comply with what the law dictates, it may be declared void if it cannot be amended. Such nullity may be declared by action taken by the interested party, and if not, upon expiration of the time for which the resolution was issued. Aliquot: A type of annuity expressed in percentages, which determines the amounts to be paid for a tax, which is established in this modality. The multiplication of the percentage rate of the aliquot by the taxable base will result in the corresponding payment of the tax in a specific period of time established for said quota. C Taxable capacity: The real possibility that a natural or legal person has to face a tax obligation to which the tax code has assigned them. Fortuitous event: Objective fact that prevents compliance with a tax obligation by the person responsible for it, as long as such event is beyond the control of the taxpayer or such situation could not be predicted. A fortuitous event frees the taxpayer from liability arising from non-compliance only if it is proven that the unforeseen event was not premeditated. Tax Forgiveness: This is the indulgence or forgiveness of a tax obligation granted by legislative decree. This forgiveness may benefit a sector of the economy and is granted according to various criteria, including the effect of natural disasters and incentives, among others. Confusion: A tax obligation is extinguished by confusion when the taxpayer is placed in the position of debtor, generating the same effects as the debt or payment. That is, the status of debtor and creditor are combined in parallel. Tax Code: This is the second-level legal framework that governs everything related to taxes and fiscal and customs procedures in the country. It was amended by Legislative Decree No. 171 of 2016. Agreements between individuals: This is the agreement that can be reached between two persons, whether natural or legal, other than the tax or fiscal authority or agency, which establishes conditions for assuming responsibilities between them to exercise or not exercise an action. Payment offset: Method by which tax obligations are extinguished by exchanging the liquid credit payable to the taxpayer for credit from liquid, payable taxes or penalties that are still in force, and both are managed by the same customs or tax agency. Liquid, firm, and payable debt: Characteristic acquired by a tax obligation when it has been established by a tax or customs entity through due process, which at the end of its term becomes payable without any appeal. That is, the taxpayer cannot avoid payment through any administrative or legal means. Report: Procedure consisting of notifying the competent jurisdiction of acts that may contain tax crimes or administrative infractions. It can be done through a legal document or by anonymous call. Tax document: All those printed or electronic forms authorized by the tax agency to record all commercial operations causing tax obligations. F Force majeure: An event that may prevent the fulfillment of a legal or tax obligation, which is beyond the taxpayer's control, which could not be foreseen, and even if foreseen could not be avoided. Merger: A legal procedure by which two or more commercial companies dissolve so that between them they form a new entity which acquires all the obligations of the dissolved companies. I Related or schedule tax of income tax: These are all taxes that are related to the Taxable Income on which the income tax is applied, their calculation is related to the profits or the increase in the company's assets. Some include Solidarity Contribution and Tax on Net Assets. Tax violation: These are all those violations that, by exercising action or by negligence, go beyond the guidelines set forth in the tax code and other tax legal regulations, but such fact does not imply the commission of a crime. M Measures to improve provision: Mechanisms applied by the tax authority in special situations, but which, after having been tested and verified by the parties, are put into practice for new situations similar to the previous one. They are used because they resolved the problems for which they were implemented. O Tax obligation: It is the legally based link that exists between the state (creditor) and natural or legal persons (debtor) with respect to compliance with a tax responsibility. The obligation may be payment or declaration of a tax. Taxpayer: It is the natural person or legal person who has the duty to comply with tax and customs responsibilities, either as a direct taxpayer or responsible for collection according to the legal norm. P Peremptory term: Time that determines the completion or expiration of a tax obligation. Priority of credits: It is the order in which a forced liquidation process of an entity that falls into insolvency or delinquency with the treasury must be followed, and said order is established to pay the credits or debts that it has. Tax procedure: These are the steps to follow to comply with a tax obligation that by ordinance of the different tax dependencies are required and must be fulfilled. S Sanctions: These are the measures taken against those who do not comply in a timely manner with the declaration and payment of a tax, they are almost always obligations that imply the payment of monetary values as a consequence of not paying a previous duty. Successor mortiz causa: It is the person who inherits the rights and obligations of another person due to the death of this person. Strengthen your tax concepts by completing the following crossword puzzle at: https://www.editoriallise.com/crucigrama-tributario-honduras All rights reserved | Editorial LISE Honduras. © 2021. Reproduction of this text in whole or in part, including for informational purposes, is prohibited, nor may it be transmitted in any form or by any means, whether electronic, mechanical, photocopying, recording, or otherwise, without prior written permission from the publisher and copyright holder.

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