The Tax Court expressed its position regarding the binding nature of cassation precedents for the Administrative Courts. The most relevant points of the RTF No. 04070-2-2024 are as follows
The Resolved Controversy by RTF No. 04060-2-202
What was the object of the controversy?
In order to determine whether the economic incentives given for employment termination by mutual consent, where agreed to be exempt from income tax if paying the incorporation of a company, were subject to income tax in the fifth category.
What is the Court’s conclusion?
The tax exemption would benefit if the taxpayer had used the received amount to incorporate a new company, which did not occur. Therefore, it confirms the position of classifying what was accepted as fifth-category income.
The Court’s Position Regarding the Binding of the Cassation Precedents
The plaintiff appealed the application of Cassation 48111-2019 in which the Court discussed whether the instances of merit evaluated correctly the evidence for which it finally established that by the application of Article 22 of the Consolidate Amended Text of the Organic Law of the Judiciary (D.S. No. 017-93-JUS), Article 397 of the CPC (R .M. No. 010-93-JUS), and Article 36 of the Consolidate Amended Text of the Law that Regulates the Contentious Administrative Process (Supreme Decree No. 011-2019-JUS) “… the precedents contained in cassation sentences are binding only for jurisdictional bodies and, in such sense, not for this Administrative Court.”
Source: Tribunal Fiscal