Tax unconstitutionality of executive decree No. 298 reduction of the tax on foreign currency outflows

Abstract

Introduction. Throughout life, people have had to pay taxes, the government oversees regulating and establishing mandates that must be fulfilled under the demands of society and one of these is taxes. Objective. Analyze the unconstitutionality of Executive Decree No. 298 regarding the reduction of the Foreign Currency Outflow Tax. Methodology. A methodology with bibliographic design supported by a bibliographic review is applied. Results. Ecuador has extensive regulations that regulate the functioning of the State. According to what is established in Article 425 of the Constitution of the Republic approved in 2008, the hierarchical order of application of the norms is as follows: Constitution; international treaties and conventions; organic laws; ordinary laws; regional regulations and district ordinances; decrees and regulations; ordinances; agreements and resolutions; and other acts and decisions of the public authorities The ISD holds the third place as the tax with the highest collection in the country after the Value Added Tax and the Income Tax. The ISD is a tax that was created to regularize the flow of capital, so that capital does not flow excessively outside the country. Conclusion. Executive decree No. 298 and the law for productive promotion, investment attraction, employment generation, suffer from fundamental unconstitutionality, undermine the constitutional hierarchy of current legal instruments. In the same way, since both legal manifestations are in force regarding the Tax on the outflow of foreign currency through the legal principle of presumption of legitimacy. The tax regulations violate the constitutional guarantee of legal security in deterioration of the supreme client: the Ecuadorian people.