Digital dematerialisation in the portuguese tax system

Abstract

The importance of the digital dimension of the world has been transforming society, in many domains, increasingly so. The tax system felt the need to follow this tendency, and over the last decades, Portuguese companies were obliged to adapt to this new reality as their routines underwent several changes thereof. The Portuguese case study is of particular relevance since it is widely acknowledged it has pioneered cutting edge dematerialization, and in this regard, it has also been taken as a model by other countries which are now replicating some long-taken Portuguese initiatives towards such dematerialization. That process represents an important step in the relationship between taxpayers and the Tax Authority because it increases the tax information’s security. This paper provides a critical review of the main dimensions of digital dematerialization in the Portuguese jurisdiction. Starting from the deductive method of literature review, which covers the doctrine, the legislation, and the jurisprudence, this paper includes practical exercises whereby we demonstrate the tightness of the tax calendar companies struggle with, somehow counterbalanced by the easiness at which declarations may be submitted. The control by Tax Administration has been increasingly tighter, to the extent that a particular terror climate has been laid down, in an attempt to act as an effective deterrent of companies’ tax evasion.