Compulsory mortgage as a form of security for tax liability

Abstract

The principle of tax fairness contained in Article 84 of the Constitution of the Republic of Poland commands the organs of the public authorities to shape tax mechanisms in keeping with the principle of equality and universality. Ensuring the effectiveness of tax revenue, as a fundamental duty of the legislature, determines the necessity of creating institutional guarantees that ensure the organs of the executive authority not only with supervision over taxpayers fulfilment of their fiscal obligations, but also the securing of the said obligations in the future via jurisdictional proceedings, claim-securing proceedings, as well as at the stage of applying coercive measures in administrative enforcement proceedings. It also leads to interference in regard to individual rights under constitutional protection, which determines the necessity to create institutional mechanisms for protecting taxpayers and monitoring the activities of public authorities, including in particular judicial-administrative supervision. This paper analyses the institution of tax mortgage, as one of the forms of security for the performance of tax obligations. As a limited right in rem, tax mortgage constitutes an effective means of securing the performance of tax liabilities, not only at the stage of tax inspection, but also in the course of administrative enforcement and claim-securing proceedings.

Keywords

• compulsory mortgage
• tax mortgage
• tax liability
• tax
• security for tax liabilities