LIMITAÇÕES AO EXERCÍCIO DA COMPETÊNCIA TRIBUTÁRIA RESIDUAL EM FACE DO PRINCÍPIO DE CORREÇÃO FUNCIONAL

Abstract

The purpose of this paper is to verify whether the Brazilian Constitution contains any other limitations on the exercise of residual taxing power, other than those set forth in articles 154, I and 195, paragraph 4. For this purpose, based on a critical interpretation of the residual taxing power, using a deductive method, and adopting as a theoretical reference the principle of functional correctness, as systematized by Friedrich Muller, we demonstrate that this requires considering the effects of federalism on the Tax System. After reviewing the concepts of federalism and fiscal federalism in the recent literature and analyzing their adequacy to the Brazilian fiscal constitution, we conclude that the residual taxing power is limited by the principle of functional correctness. The results of the research indicate that the exercise of residual taxing power cannot offend the tax equalization, because the latter is a component of the federative form of the Brazilian State