Madrid’s Supreme Court of Justice (TSJM) has sided with construction company Dragados in its dispute with Madrid City Council and will not have to pay the Construction, Installation and Construction Tax (ICIO). For works on the fourth phase of the Royal Collections Museum (finish and installations), It is located on Bailén street and is tendered by the National Heritage.
The Museum, which will host more than 155 thousand works from the royal collection and is located between the Royal Palace and La Almudena, will open on 28 June, thus ending a State project that has come to light in 25 years. The building is 40,000 square meters and designed for this work by architects Mansilla and Tuñón, who have so far received ten architecture awards.
The facts date back to September 16, 2019, when the Municipal Economic Administrative Court of the Madrid City Council ruled that Dragados, belonging to the ACS group headed by Florentino Pérez, had to pay 365,804 euros for the tax in question. The company appealed, and Madrid’s 2nd administrative court overturned the municipal decision on 19 April 2022 on the grounds that it was unlawful.
The decision concluded that there was no need for a license as the controversial works were promoted and belonged to the National Heritage, and “declared to be in the public interest or in the public interest”. After the sentence, the Capital Council of State appealed to TSJM, which objected to this case, and now no justification has been given.
In its appeal, the Council argued that the legal system required it to seek and obtain a license or apply for a substitution procedure prior to the commencement of the case. only in case of unmet exceptions according to the City Council. In addition, it was stated that obtaining a license is an indispensable condition regardless of whether the company is subsequently exempted from paying the said tax.
general interest
According to the City Council, works were not exempt from the general rule of licensing, as they did not affect more than one municipality, “mainly in major public works (roads, highways, ports…) but carried out wholly and precisely within the municipal term and solely and exclusively Before some work affecting the Madrid City Council and a particular building”.
In this sense, it is of the opinion that some finishing works and installations of the Museum building cannot be classified as “supra-municipal works that affect the spatial planning” at most, with the decision of the Supreme Court. Other larger works such as the renovation of Mahón airport or Prat de Llobregat airport had deprived it of this.
In its decision, the TSJM dismissed the grounds of appeal, which were alleged because the case-law considers the construction works of large museums to be in the public interest and are deemed to be in the public interest. reminds that the works were authorized by the decision of the Council of Ministers dated 17 June 2005, declare it to be of exceptional public interest. Likewise, it appreciates that, as with the Museo Nacional reform, the Supreme Court has several times characterized as “major public works with state jurisdiction that cannot be left to the municipal will because of their importance to society.” Del Prado in Los Jerónimos Church Convent.
Licence
The Madrid Supreme Court further recalls that in this procedure there is no formal request for a license to the City Council, but instead a business or business-related project is referred to the City Council by the competent Ministry for relevant reasons. To be treated or not to report the eligibility of the activity within one month. TSJM explains that this means that there is no need to submit approved technical projects to the municipal administration. by an architect who reflects all the data of the works.
“Combined with the circumstances currently under review and the work being extremely complex, it should be considered sufficient that the submitted project fully demonstrates the essential features of the proposed work and demonstrates the adequacy or inadequacy of the work. The viable approach must have the necessary reasoning for the City Council to fully exercise its declaratory power. as it will have Compliance or inconsistency with the approach of the project in question”.