Lietuviškai

                   THE CONSTITUTIONAL COURT OF                   
                    THE REPUBLIC OF LITHUANIA                    

                           R U L I N G                           

        On the compliance of Item 1 of Part 2 of Article         
         55, Items 1 and 2 of Part 4 of Article 56, and          
        Part 3 of Article 58 of the Republic of Lithuania        
       Law on Tax Administration with the Constitution of        
                    the Republic of Lithuania                    

                      Vilnius, 10 July 1997                      

     The  Constitutional  Court  of  the  Republic  of Lithuania,
composed  of  the  Justices  of the Constitutional Court Egidijus
Jarašiūnas,   Kęstutis  Lapinskas,  Zigmas  Levickis,  Augustinas
Normantas,  Vladas  Pavilonis,  Jonas Prapiestis, Pranas Vytautas
Rasimavičius, Teodora Staugaitienė, and Juozas Žilys,
     the secretary of the hearing - Daiva Pitrėnaitė,
     the  party  concerned  - Leonora Žukienė, the representative
of  the  Seimas,  Head  of  the  Legal  Division of the State Tax
Inspectorate  at  the  Ministry  of  Finance  of  the Republic of
Lithuania,
     pursuant  to  Part  1  of Article 102 of the Constitution of
the  Republic  of Lithuania and Part 1 of Article 1 of the Law on
the  Constitutional  Court  of  the Republic of Lithuania, in its
public  hearing  on  24  June 1997 conducted the investigation of
Case  No.  16/96  subsequent  to  the  petition  submitted to the
Court  by  the  petitioner  -  the  College  of  the  Civil Cases
Division   of   the   Klaipėda   County  Court  -  requesting  to
investigate  if  Item 1 of Part 2 of Article 55, Items 1 and 2 of
Part  3  of  Article 56, and Part 3 of Article 58 of the Republic
of  Lithuania  Law  on Tax Administration were in compliance with
the Constitution of the Republic of Lithuania.

     The Constitutional Court
                        has established:                         

                                I                                
     On  17  October  1996,  the  petitioner - the College of the
Civil   Cases  Division  of  the  Klaipėda  County  Court  -  was
investigating  a  civil  case pursuant to the procedure of appeal
subsequent  to  an  appeal  of  the stock company "Vakarų Bankas"
against  the  23  August  1996  decision  of  the  Klaipėda  City
District  Court.  By  its interlocutory ruling the College of the
Civil  Cases  Division of the Klaipėda County Court suspended the
investigation   of   the   said   case   and   appealed   to  the
Constitutional  Court  with a request to investigate whether Item
1  of  Part  2  of Article 55, Items 1 and 2 of Part 3 of Article
56,  and  Part  3  of Article 58 of the Law on Tax Administration
of   the  Republic  of  Lithuania  (Official  Gazette  "Valstybės
Žinios",  No.  61-1525,  1995;  No.  57-1342,  No.  59-1404,  No.
66-1574,  1996),  i.e.  those  which establish the unconditional,
non-prolonged  time  period  of  20  days during which a taxpayer
may  lodge  a  complaint  against  a  tax  administrator  or  his
officers, with Articles 23 and 29 of the Constitution.
  
                               II                                
     The   petitioner   grounds  his  request  on  the  following
arguments.
     Under  Article  54  of  the  Law  on Tax Administration, the
local  tax  administrator,  the central tax administrator and the
court  shall  investigate  tax  disputes.  Item  1  of  Part 2 of
Article   55   of  the  same  law  indicates  that  a  taxpayer's
complaint  shall  be  accepted  by  the  local  tax administrator
solely  in  such an instant when it is filed in writing within 20
days  from  the  receipt  of  a  written  decision  from  the tax
administrator's  officer.  An analogous time period of 20 days is
established  when  a  complaint is lodged against the decision of
local   tax   administrator   regarding  complaint  investigation
results,  as  well  as  against  a  decision  of  the central tax
administrator  (his  officers)  (Items  1  and  2  of  Part  3 of
Article  56  of  the  said  law). The taxpayer who does not agree
with  a  decision  passed  by  the central tax administrator must
file  the  complaint  to the court no later than 20 days from the
receipt   of  the  decision,  and  in  the  absence  of  decision
approval,  within  20  days  from  the  other  day  on  which the
central  tax  administrator  was  to  have  approved the decision
(Part  3  of  Article  58  of  the  said  law).  The  Law  on Tax
Administration  does  not  provide for a possibility to renew the
time  period  which has been missed for valid reasons. Meanwhile,
time  limitation  is  not  applied  for  payment of computed tax,
added  fines  and penalties, as well as their exaction (Part 3 of
Article 29 of the said law).
     The  petitioner  is  of  the  opinion that Article 23 of the
Constitution  provides  that  property  shall  be inviolable, the
rights  of  ownership  shall  be  protected  by law. Property may
only  be  seized  for  the  needs  of  society  according  to the
procedure  established  by law and must be adequately compensated
for.  This  article does not make exceptions for either different
types  of  property  (private  and public) or individual subjects
of  property  law  (natural  and  legal  persons,  the  state and
self-governments).  Meanwhile,  subjects  of  property  law  (the
state  and  taxpayers)  are evidently treated unequally by Part 3
of  Article  29, Item 1 of Part 2 of Article 55, Items 1 and 2 of
Part  3  of  Article  56,  and Part 3 of Article 58 of the Law on
Tax   Administration:   interests  of  the  state  are  protected
without  setting  down  any  limits  regarding time period, while
time  limitation  is established for taxpayers (natural and legal
persons)  and  there is provided for no possibility to prolong it
in   case  of  missing  it  for  valid  reasons.  The  petitioner
maintains   that   thereby   the  court  is  prevented  from  the
possibility  to  consider the issue of renewal of the missed time
period,  while  in  other  cases,  for instance, by Article 90 of
the   Civil   Code   of   the  Republic  of  Lithuania,  such  an
opportunity  is  granted  to  the court, while Articles 88 and 89
of  the  said  code  provide  for  suspension or dismissal of the
course  of  limitation  of  action.  The court may not conform to
the  aforementioned  provisions, as by Part 3 of Article 1 of the
Civil  Code  the norms of the Civil Code shall not be applied for
tax relations.
     The  petitioner  points  out that under Part 1 of Article 29
of  the  Constitution  all  people shall be equal before the law,
the  court,  and  other  state  institutions  and  officers. This
equality  is  regulated  by  norms  (which  are not applicable in
this  instance)  of  the  Civil  Code  (Chapter  VI  of the Civil
Code),  while  this  equality is not guaranteed by the Law on Tax
Administration   as   the  interests  of  the  state  as  regards
application  of  limitation  of  action  are  placed  higher than
those  of  taxpayers  (Part  3 of Article 29, Item 1 of Part 2 of
Article  55,  Items  1  and 2 of Part 3 of Article 56, and Part 3
of Article 58 of the Law on Tax Administration).
  
                               III                               
     On  13  February  1997  the  Seimas  passed  the Republic of
Lithuania  Law  on  Amending Articles 25, 39, 49, 50, 52, 54, 55,
56   of   and   Appending   Article   391   to  the  Law  on  Tax
Administration   (Official   Gazette   "Valstybės   Žinios",  No.
17-362, 1997).
     The  petitioner  in  his  explanation  of 9 June 1997 to the
Constitutional  Court  assesses the supplementing and amending of
the  Law  on  Tax  Administration  as  a  partial elimination the
non-compliance  of  the  contested  norms with Articles 23 and 29
of  the  Constitution, as at present the law already provides for
a  possibility  to  renew the time period of filing the complaint
which  has  been  missed  for  valid  reasons.  However,  in  the
opinion  of  the  petitioner,  the problem which occurred when it
was  investigating  the  said  civil  case,  has  not been solved
entirely,  as  the norms of the Law on Tax Administration contain
the  permission  only for the tax administrator to renew the time
period  of  filing the complaint which has been missed, while the
court  is  not  granted  such a right by neither the said law nor
Section  241  of  the  Code  of  Civil  Proceedings  by the norms
whereof  disputes  of  payments  of  taxes  are  investigated  by
established legal procedure.
     The  petitioner  contends  that the categorical provision of
Part  3  of Article 58 of the Law on Tax Administration regarding
limited  time  period to appeal to the court without granting the
right  to  the  court  to  renew  the  time period which has been
missed  for  valid  reasons  impedes  not  only the rights of the
taxpayer   but   also   those  of  the  court  which  it  has  in
investigation  of  cases  arising  from  civil and administrative
legal relations.
  
                               IV                                
     In  the  course  of  preparation  of  the case for the court
hearing,  the  representative  of  the  party  concerned  in  her
explanation  for  the  Constitutional  Court  explicated that tax
laws  are  assigned  to public law as Article 1 of the Civil Code
indicates  that  the  rules of this code shall not be applied for
tax   and   budget  relations.  The  Law  on  Tax  Administration
provides  that  "tax  denotes  monetary  obligation  owed  by the
taxpayer  to  the  state  established within the tax law in order
that  funds  may  be  obtained  to fulfil state (self-government)
functions.   This   obligation   is   performed  under  procedure
established  by  the  laws".  Therefore  fines are calculated and
penalties  are  imposed  for  taxes  unduly  paid  into the state
budget  or  remitted  overdue.  Fines  and penalties are a way of
ensuring of payment of taxes for the state (budget).
     The  representative  of  the  party concerned maintains that
tax  laws  as  a  sphere  of  public  law  are  of administrative
character.   Therefore   economic  sanctions  are  administrative
coercion  of  the sate which is necessary to ensure state finance
and   budget   relations.   Administrative   coercion   plays  an
important  role  in  strengthening the spheres of trade, finance,
commercial-economic  activity,  in  resisting  transgressors,  in
collecting  the  state  budget  etc.  Meanwhile,  under the Civil
Code,  forfeit  (fines  and  penalties) is understood as a way of
ensuring  of  the  obligation  of  one party to another which are
equal  between  each  other  (i.e. they are not linked by ties of
subordination).  Under  this  code  fines  and  penalties  may be
established  as  a particular sum or as an interest of the sum of
ensured obligation by the agreement of the parties.
     The   representative  of  the  party  concerned  is  of  the
opinion  that  another  important  principle  of  tax laws is the
fact  that  the  state  establishes  the same amount of fines and
penalties  which  is  mandatory  for  all  payers  of  respective
taxes.  When  tax laws are applied, all taxpayers are equal under
the  conditions  established  by  these  laws.  When the laws are
changed,  sometimes  the amounts of fines or penalties are either
lowered   or   increased,   however   sanctions   for   the  same
transgression  are  applied  for all subjects - respective payers
of the tax.
     In  assessing  the  norms  of  the Law on Tax Administration
which  establish  the  procedure  and  time  period  of  filing a
complaint  of  a  taxpayer  against  the tax administrator or his
officers,  the  representative  of  the party concerned contended
that  in  the  case  when  a  taxpayer  missed the time period of
filing  a  complaint,  the  complaint  shall  not  be considered.
Another   important   provision  contained  by  the  Law  on  Tax
Administration  is  that  providing  a  taxpayer  missed the time
period  of  filing  a  complaint for reasons which are recognised
by  the  tax  administrator  as  valid  this  time  period may be
renewed   by   the   decision   of  the  tax  administrator.  The
application  regarding  renewal  of  the  missed  time  period is
filed  before  such  a tax administrator under competence of whom
depends  adoption  of  the decision concerning the complaint, and
it is considered under the same procedure as the complaint.
     Under  the  Law  on Tax Administration, before investigating
a  complaint  in  the  court, prior non-judicial investigation of
the  dispute  at  the state tax inspectorate shall be obligatory,
i.e.  actions  of  a  tax administrator shall be appealed against
by  3  stages:  first,  the complaint shall be filed to the local
tax  administrator,  later  - the central tax administrator, i.e.
the  State  Tax  Inspectorate  at  the Ministry of Finance of the
Republic  of  Lithuania,  and in case one does not agree with the
decision  of  this administrator, the complaint shall be filed to
the court.
     In   view  of  civil  proceedings  the  legal  situation  of
institutions  responsible  for  tax  administration  and  that of
taxpayers  is  the  same,  the  parties  are  equal,  and  during
investigation  of  tax  disputes in the court they take advantage
of all procedural rights.
     Procedures  of  appealing against computed taxes and imposed
sanctions  by  the  tax  administrator  are  rather  different in
various  states.  In some states actions of the tax administrator
may  be  appealed against either through the tax administrator or
directly  to  the  court,  whereas  in  other  states there exist
special tax courts which investigate tax disputes exclusively.
     During   the   process   of   judicial   investigation   the
representative  of  the party concerned L. Žukienė reiterated her
statements.
  
                                V                                
     In   the   course   of  preparation  of  the  case  for  the
Constitutional  Court  hearing,  explanations  of E. Kunevičienė,
Chairperson  of  the  Budget and Finance Committee of the Seimas,
N.  Pitrėnienė,  Head  of  the  State  Tax  Inspectorate  at  the
Ministry  of  Finance of the Republic of Lithuania, as well as G.
Švedas,   a  vice-minister  of  the  Ministry  of  Justice,  were
received.

     The Constitutional Court
                           holds that:                           

     1.   On  28  June  1995,  at  the  time  of  appeal  of  the
petitioner  to  the Constitutional Court, the following procedure
of  filing  a  complaint  of  the taxpayer against the actions of
the  tax  administrator  or  his  officers was established by the
Law on Tax Administration (the wording of 2 July 1996):
     (1)  a  taxpayer's complaint had to be accepted by the local
tax  administrator  solely  in  instances  when  it was "filed in
writing  within  20  days from receipt of a written decision from
the  tax  administrator's  officer"  (Item 1 of Part 2 of Article
55);
     (2)  a  taxpayer's  "complaint  filed before the central tax
administrator  shall  be  investigated  only if: (1) submitted in
writing   within   20   days   following  receipt  of  local  tax
administrator's   decision   regarding   complaint  investigation
results  or  because the time period during which such a decision
should  have  been adopted, has expired; (2) submitted in writing
for  decision  by tax administrator (his officers) within 20 days
following  the  day  of  receipt of decision subject to complaint
(Items 1 and 2 of Part 3 of Article 56).
     (3)  a  taxpayer's  complaint  had to be filed no later than
within  20  days  from the receipt of the decision of the central
tax  administrator,  and  in  the  absence  of decision approval,
within  20  days  from  the  other  day  on which the central tax
administrator  was  to  have  approved  the  decision  (Part 3 of
Article 58).
     Thus   in   the   pre-trial   stage   of  investigation  the
unconditional  time  period  of  20  days was established for the
taxpayer   to   file   a  complaint  against  respective  actions
performed  by  officers  of  the  state  tax  inspectorate and no
right  was  granted  to either the tax administrator or the court
to prolong or renew the said time period.
     On  13  February 1997 the Seimas adopted the Law on Amending
Articles  25,  39,  49,  50,  52,  54,  55,  56  of and Appending
Article  391  to  the Law on Tax Administration. At present Parts
7 and 9 of Article 54 of the Law on Tax Administration provide:
     "7.  Providing  a  taxpayer missed the time period of filing
a   complaint  for  reasons  which  are  recognised  by  the  tax
administrator  as  valid  this  time period may be renewed by the
decision  of  the  tax  administrator.  The application regarding
renewal  of  the  missed  time  period is filed before such a tax
administrator  under  competence  of whom depends adoption of the
decision  concerning  the  complaint,  and it is considered under
the same procedure as the complaint. [...]
     9.  Along  with  filing  an application regarding renewal of
the  time  period,  the  complaint  the  time  period  of  filing
whereof  has  been  missed must be filed. The decision of the tax
administrator  whereby  the  application regarding renewal of the
term   is   rejected   may  be  appealed  against  under  general
procedure as established by the present law."
     The  petitioner  in  its  explanation of 9 June 1997 for the
Constitutional  Court  treats  this amendment and supplementation
of  the  Law  on  Tax  Administration as a partial solving of the
doubts  which  have  arisen to it, however, it has not eliminated
the  non-compliance  of  the  contested  articles with Article 23
and  29  of  the  Constitution.  The  Law  on  Tax Administration
provides  for  a possibility to renew the time period of 20 days,
which  has  been  missed for valid reasons, of filing a complaint
before  a  local  or  central  tax administrator, however, in the
opinion  of  the  petitioner, to do so only the tax administrator
is   permitted.   Part  3  of  Article  58  of  the  Law  on  Tax
Administration  establishes  the right of a taxpayer to appeal to
the  court  with  his  complaint  during  a  limited time period,
though  the  court  is  not  granted  the right to renew the time
period  of  filing  the complaint which has been missed for valid
reasons.  The  petitioner contends that this impedes not only the
rights of the taxpayer but also those of the court.
     In  assessing  the  legal  situation  which  occurred in the
case  under  investigation after the said law of 13 February 1997
had  been  adopted,  the  Constitutional  Court  holds  that  the
content  of  Item  1 of Part 2 of Article 55, that of Items 1 and
2  of  Part 4 of Article 56, and that of Part 3 of Article 58 had
basically  been  extended.  Complementary rules of implementation
of  the  contested  norms  were established by new norms (Parts 7
and  9  of  Article 54), and at present the time period of filing
the  complaint  which  has  been  missed may be renewed while the
decision  of  the  tax  administrator whereby the application for
renewal  of  the time period is rejected may be appealed against.
The   contested   parts   of   articles   of   the   Law  on  Tax
Administration  have  not formally been changed, meanwhile due to
the  performed  amendments  merely  the  numbering  of  parts  of
Article  56  of  the  said law was changed - Part 3 became Part 4
and  editorial  supplement  of  Item 2 of Part 4 of the aforesaid
article was performed.
     Therefore,  investigating  the  request  of  the petitioner,
the   Constitutional  Court  shall,  first  of  all,  assess  the
contested  norms  systematically,  i.e.  by taking account of the
wording  of  the  Law on Tax Administration which was in force at
the  time  of the application of the petitioner and investigation
of the case at the Constitutional Court.
     2.  When  one  assesses the arguments of the petitioner, the
provisions  consolidated  in  Article  127 of the Constitution as
well as their analysis are of crucial importance.
     Part  1  of  Article  127  of the Constitution provides that
"the   budgetary  system  of  the  Republic  of  Lithuania  shall
consist  of  the  independent  State  Budget  of  the Republic of
Lithuania  and  the  independent  local governments budgets". The
part  of  the  national  income  accumulated in the budget of the
Republic   of   Lithuania   creates   necessary   conditions  for
implementation   of   programmes  of  state  education,  culture,
science,  health  care, social maintenance and social assistance,
protection   of  environment,  as  well  as  for  development  of
economy,    maintenance    of    state   government   and   state
administration  institutions  and  strengthening  the  defence of
the country.
     Part  2  of  Article  127  of the Constitution provides that
"State  Budget  revenues  shall be accrued from taxes, compulsory
payments,   dues,   receipts   from  State  property,  and  other
income".  Thus  one  of  the  most important sources of the state
budget  is  taxes. Basing oneself on Item 15 of Article 67 of the
Constitution,   one   may   assert  that  taxes  are  obligatory,
gratuitous  and  timely  payments  of  respective amount of legal
and  natural  persons  as  established  by the law into the state
(local    government)   budget   (or,   in   some   cases,   into
non-budgetary  purposive  funds).  It  is  evident  that the main
purpose  of  taxes  is  fiscal, they are used to accrue the state
treasury  designated  for  satisfying  public  needs of the state
and   society.  Besides,  with  the  help  of  taxes  social  and
economic  processes  taking  place  in  the  state are regulated,
useful  economic  efforts  are supported, capital and investments
are  attracted,  or,  on  the  contrary,  undesirable  trends  of
socio-economic development are intermitted.
     Along  with  consolidation  of  the  budgetary system of the
Republic  of  Lithuania  and indication of the sources of accrual
of  the  state  budget,  the  provisions  of  Article  127 of the
Constitution  consolidate  the  constitutional duty to pay taxes.
This   monetary   obligation   provided   for   the  taxpayer  is
accomplished under the procedure established by the law.
     One  should  also  note  that provided taxes are not paid or
paid  overdue  the  state  budget  does  not receive revenue, the
budget   deficit   increases,  possibilities  for  the  state  to
implement  its  tasks  and  accomplish  its  functions  which are
vitally  important  for  its  citizens,  the nation and the state
are  restricted  or  even  deprived  of. Furthermore, at the time
when  part  of  subjects  of  economic activity do not pay taxes,
the  other  subjects  - conscientious taxpayers - find themselves
at  a  disadvantage,  and  thereby  essential  principles of free
market basing itself on fair competition are violated.
     The  state  budget must be replenished constantly. Therefore
the  rights  and  duties  of  subjects  of  tax  relations in the
sphere  of  payment  of  taxes  must  be  accomplished  not  only
completely  but  also within established time limits while arisen
tax  disputes  must be settled as soon as possible. Tax relations
are  a  matter  of  regulation by public law therefore the method
of   administrative   legal   regulation  is  applied  for  their
realisation first of all.
     Subordination,  elements  of  command  dominate in the norms
of  tax  laws  establishing  the means ensuring accomplishment of
tax  obligation,  in defining the status of subjects of legal tax
relations,   in  solving  issues  of  taxpayers'  responsibility,
procedure  of  investigation of tax disputes and other questions.
Such  an  imperative,  obligating  method  of  regulation ensures
priority  of  interests  of  the general public, as well as those
of   the   state,   in   tax   relations.   When  the  method  of
administrative  legal  regulation  is applied, legal relations of
commanding    character    occur   between   the   taxpayer   and
institutions   of   the  executive  power  of  the  state  -  tax
administrators.  Instructions  given  by  the  latter, as well as
their  adopted  decisions,  are mandatory for taxpayers. One does
not  negotiate  taxes,  the rights and duties of the taxpayer are
directly  pointed  out  in  the  norms  of  tax  laws.  Not  only
financial  but  also  administrative  and criminal responsibility
is established and applied for violation of tax laws.
     Alongside,  one  should  note  that  the  relations  between
taxpayers  and  the  officials  administering taxes must be based
not  only  on effective implementation of commanding instructions
but  also  on  a  real  opportunity of the taxpayer to defend his
legitimate interests.
     3.1.   The  petitioner  contends  that  Article  23  of  the
Constitution  does  not  provide  for  any  exception  for either
specific  types  of  property or individual subjects of property.
Meanwhile  the  Law  on  Tax  Administration evidently places the
subjects  of  the  right  to property (taxpayers, the state) at a
disadvantage:  Part  3  of  Article  29 of this law provides that
the  time  limitation term is not applied for payment of computed
tax,  added  fines  and penalties, as well as their exaction when
the  limited  time  period  of  20 days is established for filing
complaints.  Only  the tax administrator is entitled to renew the
said time period provided it has been missed for valid reasons.
     Therefore  the  petitioner argues that when tax disputes are
settled  the  interests of the state are placed higher than those
of  taxpayers.  The  provision of Part 3 of Article 58 of the Law
on  Tax  Administration which does not grant a possibility to the
court  to  renew  the  time period for filing the complaint which
has  been  missed  for  valid reasons impedes not only the rights
of  taxpayers  but  also  those of the court and thereby violates
Article 29 of the Constitution.
     3.2.   Article  29  of  the  Constitution  consolidates  the
principle  of  equality  of all people before the law, the court,
and  other  state  institutions  and officers. The Constitutional
Court  has  already  noted  that this principle "must be observed
when   passing  and  applying  laws,  as  well  as  administering
justice.   This   principle  obligates  to  apply  uniform  legal
assessment  to  homogeneous  facts  and  prohibits to arbitrarily
assess  essentially  homogeneous  facts"  (the  24  January  1996
ruling of the Constitutional Court).
     Legal  equality  of  taxpayers before the law is established
by  Article  3  of the Law on Tax Administration which stipulates
that  "in  applying  tax  laws, all taxpayers shall be held equal
on  the  basis of the conditions established by these laws". Thus
tax  laws,  as  well  as  the  Law  on  Tax  Administration,  are
universal with respect to taxable subjects.
     As  it  was  mentioned,  the  method of administrative legal
regulation  prevails  in  the  sphere of tax relations. Therefore
in  their  legal  position taxpayers may not be made equal to the
tax  administrators  who,  by  representing  state  interests and
administering  accomplishment  of  the  tax duty, base themselves
on   commanding   authorisation.   The   taxpayer   and  the  tax
administrator  have  different  rights  and  duties  due  to  the
character  of  the  same  tax  as  an  obligation  of  the state.
However,  every  taxpayer  is  entitled  to  dispute  and  appeal
against  every  decision  of the tax administrator or his officer
under time period and procedure established by the law.
     By   the   administrative   method   of  regulation  of  tax
relations  and  the  procedure  of  pre-trial  investigation  one
attempts  to  ensure  that  the  taxes  were  paid  promptly  and
timely.  Therefore  it  is  necessary  that  the  subjects of tax
relations  accomplish  their  duties during the shortest possible
time  period  as  established by the law. This is also induced by
the  special  and  comparatively  short time period of filing the
complaint.  On  the  other  hand,  provided  a taxpayer considers
that   he   was  unsuccessful  in  defending  his  rights  during
pre-trial   stages  of  investigation  of  tax  disputes,  he  is
entitled to appeal to the court.
     Alongside  one  should  take account of the fact that, as it
was   mentioned,   after   the   13  February  1997  Law  on  Tax
Administration  had  been amended and supplemented, a possibility
appeared  to  renew  the  time  period  of  filling the complaint
which  has  been  missed  for valid reasons (Part 7 of Article 54
of the Law on Tax Administration).
     A  conclusion  is  to  be  made  from  Parts  1,  7 and 9 of
Article  54  of the aforesaid law, as well as from the content of
the  contested  norms, that the taxpayer, who does not agree with
the  refusal  of  the  tax administrator to renew the time period
of  filing  the complaint which has been missed for valid reasons
or  providing  the tax administrator does not adopt any decisions
regarding  this  question,  then  the  taxpayer  is  entitled  to
appeal  to  the court against such an action or absence of action
of  the  tax  administrator (his officers), as well as due to the
consequences which have arisen because of this.
     The  Constitutional  Court  emphasises  that  it  is such an
interpretation  of  the  Law  on  Tax  Administration which is in
compliance  with  the provision of Article 30 of the Constitution
whereby  any  person  whose constitutional rights or freedoms are
violated shall have the right to appeal to court.
     After  the  process  of  solution of tax disputes has ceased
and  the  complaint  has  been lodged against the decision of the
tax  administrator  (his  officer)  to  the court, the procedural
legal  situation  of  the institutions (their officers) which are
responsible  for  tax administration and that of taxpayers become
equal.  These  subjects  of  tax  relations  become  parties of a
civil   proceedings   and   the   court   investigates  the  case
conforming to principles of contention and parties' equality.
     Thus  the  disputed  norms  of the Law on Tax Administration
are in compliance with Article 29 of the Constitution.
     3.3. Article 23 of the Constitution stipulates:
     "Property shall be inviolable.
     The rights of ownership shall be protected by law.
     Property  may  only  be  seized  for  the  needs  of society
according  to  the  procedure  established  by  law  and  must be
adequately compensated for."
     In  view  of  property,  the  norms  of  Article  23  of the
Constitution,  all  together  forming an intact unity, reveal the
essence  of  protection  of  the  right to property and emphasize
constitutional protection of property.
     The  Constitutional  Court  has noted, that inviolability of
property  must  not  be  treated  as unrestricted: "[...] neither
the   Constitution   nor   valid   system   of  other  laws,  nor
universally  recognized  norms  of  international  law  deny  the
opportunity  under  conditions  and  procedure  prescribed by the
law  to  alienate the property or restrict its possession, use or
disposal"  (the  13  December  1993  ruling of the Constitutional
Court).
     Article  1  of Protocol No. 1 of the European Convention for
the   Protection   of   Human  Rights  and  Fundamental  Freedoms
indicates  that  "every  natural  or  legal person is entitled to
the  peaceful  enjoyment  of  his  possessions.  No  one shall be
deprived  of  his  possessions  except in the public interest and
subject  to  the  conditions  provided  for  by  law  and  by the
general principles of international law.
     The  preceding  provisions  shall  not,  however, in any way
impair  the  right  of  a  State to enforce such laws as it deems
necessary  to  control the use of property in accordance with the
general  interest  or  to  secure  the  payment of taxes or other
contributions or penalties".
     Thus  international  law  does  not deny the right of states
to  establish  by  the law broad opportunities of tax collection,
ways   of   control,   choice  of  means  in  ensuring  effective
functioning of state tax and budget systems.
     One  should  note  that  along  with promulgation of general
principle  of  inviolability  of  property  in  Article 23 of the
Constitution,  the  right of the Seimas to establish taxes by the
law  is  consolidated  in  Part  2  of  Article  127,  Item 15 of
Article  67  of  the  Constitution. Furthermore, the norms of the
Constitution,  by  granting  the  right  to  the Seimas to impose
taxes,  also  pre-suppose  obligation  for  the  state  to create
necessary,    sufficient    and    effective   legal   means   of
implementation   of  the  rights  and  duties  of  tax  relations
subjects.
     In  the  sphere  of accrual of the budget, as well as in the
sphere  of  taxes,  the  object  of  state activities in imposing
taxes  is,  first  of  all,  property,  received returns, income,
accumulated  financial  resources  etc.  Thus  the constitutional
duty  occurs  to  the owner to pay taxes to the state. Alongside,
the  owner  is  a  subject of tax law - a tax payer - and through
taxes   he  finances  implementation  of  internal  and  external
functions of the state.
     The    nature    and    purpose    of   state   taxes,   the
administrative-legal  method  of regulation of tax relations, the
rights  and  duties  of  the  subjects  of  these  relations  and
guarantees  of  their  implementation, the procedure of pre-trial
investigation   of  tax  disputes,  the  time  period  of  filing
complaints   against   actions  of  the  tax  administrator  (his
officers)  by  taxpayers,  as well as the procedure of renewal of
this  time  period,  permit  to  maintain  that  the principle of
inviolability  of  property  is  not  violated  in tax relations.
Thus  the  disputed norms of the Law on Tax Administration are in
compliance   with   the   provisions   of   Article   23  of  the
Constitution.
     Taking  account  of the motives set forth a conclusion is to
be  made  that  Item  1 of Part 2 of Article 55, Items 1 and 2 of
Part  4  of  Article  56,  and Part 3 of Article 58 of the Law on
Tax  Administration  are in compliance with Articles 23 and 29 of
the Constitution.

     Conforming  to  Article  102  of  the  Constitution  of  the
Republic  of  Lithuania and Articles 53, 54, 55 and 56 of the Law
of  the  Republic  of  Lithuania on the Constitutional Court, the
Constitutional Court has passed the following
                             ruling:                             

     To  recognise  that  Item 1 of Part 2 of Article 55, Items 1
and  2  of  Part 4 of Article 56, and Part 3 of Article 58 of the
Republic   of   Lithuania   Law  on  Tax  Administration  are  in
compliance with the Constitution of the Republic of Lithuania.

     This  Constitutional  Court  ruling is final and not subject
to appeal.
     The  ruling  is  promulgated  on  behalf  of the Republic of
Lithuania.