Legitimate interests of legal entities: doctrinal approaches and application in Tax Law

Abstract

The theory of legitimate interests was created within the sociological school of law. Interests have been interpreted as an individual’s aspiration to meeting its own needs. The theory has been directed on researching individuals’ legitimate interests. The question of corporate interests has been not properly researched, the problem of a subject of a legitimate interest has been not the point of discussion in a legal theory. There is no unanimous point of view on corporate interests within a science of civil law. Two opposite points of view co-exists in the doctrine: interests of corporations are real (realistic theories); only interests of sharers are real (fiction theory). It is possible to recognize the existence of corporation’s legitimate interests with specific legal nature, derived from entrepreneurial activity of a corporation. Legitimate interests are used by courts in the resolution of tax disputes, for example, by applying the principle of ‘bona fide’ tax administration. By analysis, other legitimate interests of a legal entity are legitimate expectations and the ‘tax reconstruction’. The research on the topic of legitimate interests of corporations are perspective for the tax law.

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