Obligations and rights of the tax administrator


Obligations of the tax administrator  

The tax administrator (an officer thereof), in exercise of its functions, is obliged to:

  1. encourage voluntary tax payments;
  2. respect the rights of the taxpayer;
  3. comply faithfully with the tax legislation;
  4. within its competence, protect the legitimate interests of the State;
  5. ensure the confidentiality of information concerning the taxpayer;
  6. exercise its rights as far as it concerns the functions assigned to it;
  7. in the exercise of its functions, aim to minimize disruption to the taxpayer;
  8. fulfil other obligations established by the Republic of Lithuania Law on Tax Administration, other laws and their accompanying legal acts.

LEGAL INFORMATION

Article 32 of the Republic of Lithuania Law on Tax Administration.

Rights of the tax administrator

The tax administrator (an officer thereof), in exercise of its functions, has the right to:

  1. obtain from persons/entities (including credit, payment and electronic money institutions) data and copies of documents required to exercise its functions, digital media data (copies) on the assets, income, expenses and economic activities of the person/entity, including data on beneficiaries, as defined in the Republic of Lithuania Law on the Prevention of Money Laundering and Financing of Terrorism; access information on registers and databases owned or maintained by the tax administrator itself or other legal persons;
  2. access the territory, buildings and premises of the taxpayer, in accordance with the procedure established under this Law;
  3. temporarily seize records, transactions and other documents from the taxpayer in case these are necessary for verifying the accuracy of tax calculation and for conducting a tax investigation;
  4. restrict (seal) documents, securities, storages of cash and material valuables, premises, equipment, territory or parts thereof of the taxpayer;
  5. collect samples of products (goods) or make control purchases;
  6. make markings on the documents of the taxpayer to prevent forgery;
  7. issue binding instructions to the taxpayer, as well as to other natural persons and legal entities (in connection with the exercise of the tax administrator rights in relation to the taxpayer), to appear before the tax administrator, if this is necessary for the purpose of its functions; issue instructions on matters linked to calculation, return and payment of taxes, declaration of assets and income, accounting;
  8. enforce the recovery of tax arrears from persons/entities;
  9. Expired on 1 January 2017;  
  10. carry out (or request other competent authorities to carry out) control measurements, computer program and data inspections, inventory inspections, tangible asset inspections, other factual inspections;
  11. install meters and measuring devices in the warehouses, production storages and other facilities of the taxpayer which are used for the respective economic activity of the taxpayer;
  12. stop and inspect vehicles when suspected of infringing legislation for which the tax administrator is responsible, and detain and inspect goods and documents thereof, in accordance with the procedures for carrying out an operational inspection approved by the central tax administrator;
  13. where reasonable suspicion arises on certain income not being taxed in accordance with the law, or on property being acquired with funds not taxed in accordance with the law, instruct persons to provide explanations on the acquisition of the respective property or the sources of the respective income and substantiate these in a form of manner approved by the central tax administrator;
  14. address the taxpayer, other natural and legal persons (in connection with the exercise of the tax administrator rights in relation to the taxpayer), and issue instructions to remove circumstances and conditions preventing the tax administrator from properly exercising its functions;
  15. apply methods of securing the fulfilment of a tax obligation;
  16. on the basis of representation or by assigning the right of claim, in accordance with the procedure established by the Minister of Finance of the Republic of Lithuania, transfer the recovery of tax arrears of the taxpayer to the manager of centrally-managed state assets;
  17. within its competence, bring an action before a court of law for the annulment of a transaction or part thereof; be the claimant or the defendant before a court of law in other proceedings;
  18. conduct a tax investigation;
  19. take photographs, audio and video recordings, without violating the right to privacy guaranteed by law;
  20. exempt the taxpayer or a third party from the fulfilment of the requirements established under the legislation which the tax administrator is competent to implement, if the proper fulfilment of tax obligations is ensured by measures recognized as equivalent or alternative by the central tax administrator;
  21. take decisions based on automated data processing, including profiling, in accordance with the procedures established by the central tax administrator;
  22. exercise other rights conferred by tax and other laws.

LEGAL INFORMATION

Article 33 of the Republic of Lithuania Law on Tax Administration