Federalism, legislative competence and complementary reserve of law in tax matters: can municipalities establish species of extinction of tax credit not provided for in the National Tax Code?

Abstract

The purpose of this paper is to reflect and answer the following question: can Municipalities create additional tax credit extinction hypotheses of those currently existing in the National Tax Code? For this purpose, the hypothetical-deductive method will be used in the search for the answer to the questions, in addition to the analysis of the Federal Constitution, the National Tax Code, the doctrine and the Federal Supreme Court case law. The answer to the question is positive, that is, the Municipalities have the competence to institute modalities of extinction of their tax credits not provided for in the CTN, because the Constitution only requires a national supplementary law to provide for prescription and decay in tax matters, the theory of implicit powers (the more can the less) can be used as a basis for the affirmative answer and, finally, the hypotheses of extinction of the tax credit provided for in the National Tax Code constitute an exemplary list. Therefore, as a conclusion, the answer is positive, that is, the Municipalities can, by simple ordinary law, establish new hypotheses for the extinction of the tax credit.