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Article 19 of the Federal Constitution provides that the
Federal Government, States, and municipalities are to enjoy
immunity from taxation of their income, assets, and operations.
Article 19 further extends this immunity from taxation to
"autarquias" (i.e., autonomous governmental entities) like the
Central Bank.
The National Tax Code establishes the parameters within which
the taxing authority of the Federal Government, States, and
municipalities may be exercised. It does not, in and of itself,
create or impose any taxes.
Article 4 of the National Tax Code specifies that the legal
nature of a tax is determined by its generating factor (that is,
the taxable event); the name and other formal characteristics of
the tax are irrelevant to the legal nature of the tax.
Article 9 of the National Tax Code generally provides that an
entity's immunity or exemption from tax will not relieve it of its
obligation to collect withholding taxes that are due with respect
to its income remittances to third parties.
Article 113 of the National Tax Code divides tax obligations
into principal and accessory obligations. The principal obligation
is created by the taxable event and has as an objective the payment
of tax. The accessory obligation is derived from the tax
legislation and has as its objective the performance of specific
acts (e.g., maintaining books and records, filing tax returns) in
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