imageSão Tomé and Príncipe | Law No. 3/2010, of 23 March 2010

Amendments to the General Tax Code (2010)

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NATIONAL ASSEMBLY Law No. 3/2010 1st Amendment to the General Tax Code Preamble Whereas tax policy is based on revenue collection and expenditure control; Taking into account that combating fraud and tax evasion must be a priority as a means of better distributing national wealth; Considering also that one of the ways of this fight is the possibility of taxation of illicit income, already foreseen in paragraph 3 of article 1 of the Personal Income Tax Code (PIT); Regarding that the taxation of illicit income is based on the taxpayer's legal capacity to pay which is likely to be subject to a taxable legal relationship, in the event of an equity increase in the respective heritage; Regarding also that the taxation of illicit income as an exercise of income-generating activity outside the law, that is, which requires the authorization of the competent authorities for the exercise of such activity; Whereas, finally, the taxation of such income complies with the principle of constitutional equality and the principle of tax equality, which means that all taxpayers with the capacity to pay are taxed; The National Assembly hereby decrees, under the terms of subparagraph (b) of article 97 of the Constitution, the following: