Creation of the Tax Administration Service

The Tax Administration Service (SAR) is hereby created as a Decentralized entity attached to the Presidency of the Republic, with functional, technical, administrative, and national security autonomy, with its own legal personality, responsible for tax administration, with authority and competence at the national level and with domicile in the Capital of the Republic. It shall have the power to temporarily close sites where operational, commercial, industrial, professional or trade activities are conducted when the taxpayer fails to comply with the tax obligations contained in the aforementioned provisions; l) Approve agreements of a particular and general nature for the efficient application of tax provisions; m) Resolve proceedings initiated ex officio or at the request of a party within the scope of its jurisdiction; and, n) Any other faculty or attribution established and that were in the Laws and Regulations attributed to the abolished Executive Directorate of Income (DEI).

The organizational structure of the Tax Administration Service (SAR) shall be established in a Regulation.

The Tax Administration Service (SAR) has the following functions:

• a)

  Comply with and enforce the provisions of the Constitution of the Republic, International Agreements in Tax matters, the Tax Code, Laws and other norms of a tax nature;

• b)

  Supervise compliance with tax obligations, in order to combat tax evasion and avoidance;

• c)

  Create plans and programs for administrative management in accordance with the guidelines of economic policy and annual collection targets agreed upon;

• d)

  Promote tax culture among the population through programs of tax assistance, guidance, and education;

• e)

  Establish and maintain relationships with national and international institutions, organizations, and cooperation agencies linked to tax administration, as well as celebrate Agreements, Contracts, and Conventions linked to the development of its functions;

• f)

  Administer the Tax System, exercising all the attributions and faculties established in the Tax Code and other Laws and Regulations related to the matter;

• g)

  Manage the collection of taxes and levies established in Tax Laws;

• h)

  Recover tax debts;

• i)

  Request from third parties, public or private, accounting, financial, stock market, registry, and any other information necessary for the fulfillment of investigative functions;

The Director of the Tax Administration Service (SAR) has the following attributions:

• a)

  Exercise the functions of administration, direction and management of the institution;

• b)

  Delegate functions to the officials deemed convenient;

• c)

  Issue Internal Organization Regulations and other Regulations, instruments, norms and manuals necessary for the fulfillment of the institution's functions as well as those related to tax and customs matters;

• d)

  Prepare the annual budget within the budgetary ceiling assigned and remit it to the Ministry of State in the Office of Finance for its incorporation into the General Budget of Income and Expenses of the Republic;

• e)

  Approve the Annual and Multi-Annual Operating Program, financial statements and institutional report for presentation to the corresponding bodies and supervise their execution;

• f)

  Subscribe Cooperation Agreements, Accords and contracts with national and international institutions and organizations linked to tax matters and related to the development of its functions;

• g)

  Select, hire, evaluate, promote and remove personnel in accordance with applicable legal norms;

• h)

  Approve institutional policies;

• i)

  Issue the Agreements and Resolutions necessary for the fulfillment of the institution's functions, supervise and ensure their strict compliance;

• j)

  Communicate and report to the corresponding bodies the facts and acts that have indications of civil, administrative and criminal liability; and,

• k)

  Other faculties and functions attributed to it by current Laws and Regulations.

The patrimony of the Tax Administration Service (SAR) is comprised of:

• a)

  Tax allocations approved by the National Congress of the Republic, of up to two point five percent (2.5%) of the total collection of internal and customs taxes of the immediately preceding fiscal year;

• b)

  Own income such as that derived from the provision of services of any kind, as well as resources derived from auctions or sales of data transport services and others;

• c)

  Inheritances, legacies and donations from other public or private sources, national or foreign, and those derived from international cooperation funds; and,

• d)

  Transfers and assets agreed upon by the Ministry of State in the Office of Finance.

The relationships between the Tax Administration Service (SAR) and its personnel shall be governed by the Labor Regime that is approved by the highest authority of the institution. Said Regime shall contain as minimum norms the subsystems for proper human talent management. The personnel of the Tax Administration Service must be technical and highly qualified, subject to Trust Certification tests.

During the remainder of the 2015 budgetary period, the Ministry of State in the Office of Finance must allocate resources in accordance with the requirements presented by the new authorities of the Tax Administration Service (SAR) within the framework of the budget of the present fiscal period.

During the organizational period of the Tax Administration Service (SAR), the functions and attributions of the Director shall be exercised by the Presidential Commissioner designated by the President of the Republic.

This Executive Decree enters into force on the fourteenth (14) day of April of the year two thousand sixteen (2016) after its publication in the Official Gazette "La Gaceta". Given in the Sessions Hall of the Presidential House, in the city of Tegucigalpa, municipality of the Central District, on the twenty-sixth (26) day of the month of November of the year two thousand fifteen (2015). COMMUNICATE AND PUBLISH.