CONSTITUTIONAL PRINCIPLES AS A COUNTERWEIGHT TO TAX POWER

THE CASE OF DS 5327 IN BOLIVIA

Abstract

This research analyzes the compatibility of Supreme Decree 5327 with the Bolivian constitutional principles of legal certainty, taxpaying capacity, and non-confiscation. The main objective of the study is to determine whether the implementation of this decree respects the democratic limits of the State's exercise of tax authority. Through a qualitative approach based on critical interpretative analysis of legal and regulatory sources, the impact of modifying the compensation regime between the Corporate Income Tax (IUE) and the Transactions Tax (IT) is examined. The research reveals that DS 5327, by conditioning the compensation of the IUE with the IT on the timely payment of the former, creates significant tensions with fundamental constitutional principles. The results show that this regulatory modification could violate the principle of legal certainty by abruptly altering a long-standing tax regime, affect taxpayers' ability to pay by imposing additional financial burdens, especially on SMEs and micro-enterprises, and approach the limits of non-confiscation by potentially generating situations of economic double taxation. It concludes that, while the State has the authority to establish mechanisms to improve tax collection, these must be exercised within constitutional limits, respecting fundamental rights and ensuring a balance between state needs and taxpayer protection. The research proposes a revision of the decree to safeguard the democratic principles that underpin the Bolivian tax system.