Tax power in Ecuador: constitutional limits to the exercise of the powers of the tax administration and protection of taxpayer rights.

Abstract

This study analyzed the constitutional limits on the exercise of tax power in Ecuador and their effectiveness as mechanisms for protecting taxpayers' rights, considering the tension between the State's need to collect tax revenue and the protection of the fundamental rights enshrined in the 2008 Constitution. The research aimed to identify the constitutional principles that limit tax power, examine their role as constraints on the administrative authority of the Internal Revenue Service (Servicio de Rentas Internas – SRI), and assess their effectiveness in safeguarding taxpayers' rights. The study adopted a qualitative-dogmatic approach through documentary analysis of legal sources, including the Constitution, the Ecuadorian Tax Code, specialized legal doctrine, and the jurisprudence of the Constitutional Court of Ecuador corresponding to the 2021–2026 period. The findings revealed the existence of two categories of limiting principles: the explicit principles established in Article 300 of the Constitution and the implicit principles recognized by legal doctrine and constitutional jurisprudence, including the ability-to-pay principle and the principle of non-confiscation. Furthermore, these principles operate as formal, substantive, and procedural limits on tax administration, although their effectiveness is constrained by regulatory gaps and discretionary administrative practices, such as tax reassessment procedures. The study concludes that constitutional limits effectively protect taxpayers' rights when properly applied; however, their practical effectiveness depends on stronger judicial oversight and an institutional culture that internalizes constitutional principles as binding standards for administrative action.