Breaking Bank: Supreme Court Upholds Sealing of Safe Deposit Boxes during Tax Inspections without Judicial Authorization

The Supreme Court has ruled that the Tax Agency can seal safe deposit boxes rented by individuals from banking entities during tax inspections without judicial authorization. This decision marks a significant victory for the government in its efforts to prevent tax evasion and fraud.

The court has clarified that sealing a safe deposit box does not violate the right to privacy or the inviolability of the home, as the box is located outside the home and is rented from a bank. The General Tax Law allows the Treasury to carry out this sealing, but inspectors must justify the proportionality, suitability, and necessity of the measure to prevent administrative arbitrariness.

The discussion over the limits of sealing safes during tax inspections has been ongoing for years, with concerns raised about the violation of fundamental rights. However, the Supreme Court has rejected these concerns when the boxes are located in banks, emphasizing that it is a seal and not an opening and that the safe deposit box is not within the taxpayer’s home.

While some argue that sealing a safe deposit box may be an invasion of privacy, the court considers it to be less intense compared to other measures such as opening it. However, issues related to fundamental rights may arise when safe deposit boxes are located in