Discretion in Tax Law

The article examines discretionary powers of the tax authorities. Purpose: to identify the main characteristics of the use of discretion in tax law. Methods: the study is based on empirical methods of comparison, description and interpretation, theoretical methods of formal and dialectical logic, and specific scientific methods: legal dogmatic method and method of legal norm interpretation. Results: Russian and foreign lawmakers are actively using discretionary powers of the tax authorities to achieve the objectives of legal regulation to overcome the uncertainty in tax law. Conclusions: discretion in tax law is designed so that in a situation of complete or relative uncertainty the tax authority could have the opportunity to choose the optimal solution from a number of legitimate alternatives. The attribute signs of discretion in tax law include: existence of legal bases; implementation of discretionary powers strictly within the competence; alternativeness of the choice, where each of possible alternatives is lawful; accounting of the specific situation in case of adoption of the discretionary decision (the situation-based approach); creative nature; a discretionary decision is made under the influence of both objective and subjective factors; discretion is limited by legal and extra-legal framework; the exercise of a discretion power results in choosing the optimal resolution for the case. Legal forms of discretion in tax law: the use of legal principles, anti-avoidance rules, valuation norms, presumptive taxation, analogy of the law, relative sanctions, etc.