INSTITUTIONAL TRUST IN THE PERSPECTIVE OF THE PRINCIPLE OF LEGITIMATE EXPECTATIONS AND PROTECTION OF TRUST

Abstract

This paper is an attempt to approach the principle of legitimate expectations and protection of trust from the perspective of institutional trust. The main question concerns the meaning of the term ‘trust’ as used in the Code of Administrative Procedure and the Tax Law. The further concern is whether institutional trust is at all conceptually possible. An affirmative answer to that requires adding the ‘placing a bet’ or an ‘interest perspective’ regarding the trusting person to the definition of ‘trust’. The absence of that ingredient leads to a conclusion that the term ‘trust’ as used in article 121 of the Tax Law and article 8 of the Code of Administrative Procedure would merely denote relying on the organ of administration rather than having trust in it. Understanding the term ‘trust’ enables one to establish that the trust in public organs of administration is of pragmatic and moral nature.