Ayuso’s appeal to the Constitutional Court starts judicial battle against new government taxes

It has so far been the only appeal to the courts against the new wealth tax in Madrid, although it was also announced by the Andalusian autonomous government or the Catalan employers’ association Foment del Treball. President what now To look, Josep Sanchez LlibreIt is a call to taxpayers with a net worth of more than three million euros to submit. a management resource deduct their taxes as soon as they pay so they can get their taxes back if they are declared unconstitutional in the future. The deadline for declaring the new tax on large fortunes will be set by an upcoming ministerial order from the Treasury. In any case, its liquidation will be after the deadline for declaration of wealth tax, i.e. until 30 June, since the amount paid by the latter will be deducted from the new tax quota. According to the text accessed by EL PERIÓDICO DE CATALUNYA from the Prensa Ibérica group, the unconstitutionality appeal submitted by the Community of Madrid is based on five legal grounds.

Procedure violation

From an official point of view, the appeal questions the parliamentary procedure followed for the creation of the new tax. The tax was created not from one bill or bill, but “surprisingly” with an amendment to another bill (regarding the establishment of banking and energy taxes), despite addressing such an important issue, “undertaking legislative procedure.” problem. This route, according to the text of the appeal, prevented other groups from submitting changes to the regulation of this tax to the Congress of Representatives and “thus violating the fundamental right to political representation enshrined in Article 23.2 of the Constitution”. In addition, using a bill tool (promoted by the parliamentary groups of PSOE and Unidas Podemos) was prevented from “presenting a necessary hearing and requesting a report”, as would otherwise have to be done. It can be requested by the Council of State.

“Improper” tax harmonization

The second of the arguments put forward refers to the fact that, with the creation of the new tax, “an attempt was made to improperly harmonize the regulatory powers legitimately exercised by autonomous communities in relation to the wealth tax”. The norms constituting the constitutional block were created for this purpose”. The appeal argues that the taxable event of the new state solidarity is the tax on great wealth (net wealth). 3 million) “overlaps” with the pre-existing wealth tax (applied From 700.000 Euros), its collection has been transferred to autonomous communities. Thus, the new taxdisable the bonus The wealth tax approved by the Community of Madrid [del 100%], enforce taxation property of natural persons habitually residing in the Madrid region, when it exceeds three million Euros. Preliminary agreement of the Joint Commission society and the State and a legal change. “Therefore, avoiding the legally established procedure for establishing a new tax, changing the allocation conditions of the Wealth Tax with the sole aim of harmonizing the taxation of the inheritance of natural persons, a real fraud‘, he concludes.

retroactive effects

From the perspective of the Madrid community, the new tax will be effective for the entire fiscal year 2022 (approval published in BOE 2022), although it is only in effect on the last three days of the year. 28 December) constitutes a kind of “walking into the past” and “increasing tax debt, which can be described as unpredictable and without sufficient justification”, “contrary to the principle of legal certainty in Article 9.3 of the Constitution”.

confiscating

As a fourth legal argument, General AdvocacyThe Community Court of Madrid held that “the structuring of the tax does not conform to the economic reality of Article 31.1 of the Constitution and assumes a manifestation. unreal or imaginary wealth“. Includes a scale with the new tax three types of lien (1.7%, 2.1% and 3.5%) apply to three million net worth. “However, given the economic indicators of the current moment, expert investor, It is requested to underline the “confiscation” nature of the new tax, according to him, by the statement that it is actually impossible to obtain returns even close to the tax rates in the scales.

financial autonomy

The appeal also alleges that “the tax undermines the fiscal autonomy of the autonomous communities (especially in relation to this appeal, the Community of Madrid) by equally disregarding the regulatory powers they exercise with regard to devolved taxes, their political autonomy, and the principles of fiscal joint responsibility, cooperation, and corporate loyalty”. . According to the Community of Madrid, “fiscal autonomy refers not only to the possibility of creating or raising taxes, but also of reducing or even eliminating them,” and this principle, de facto, eliminates the regional government’s decision to subsidize 100% wealth taxation.