The Constitutional Court approved the so-called solidarity tax imposed by the Ministry of Finance on large fortunes, rejecting the funds collected by the autonomous communities governed by the PP. Just as the Constitutional Court dealt a blow to Madrid, Andalusian Junta Yet Xunta de Galicia.
It does so in a decision that was dissented by four conservative judges who thought the tax imposed by the Government was low. “Unconstitutional and invalid.” The resolution rejects the fact that this is a tax that violates the financial autonomy of communities and supports its inclusion in the bill that imposes a tax on large energy companies and banks.
The chapter on the state tax on large fortunes is closed, but war of communities to defend the policy lower taxes, also to the richest. If Madrid announced days ago that it was trying to roll back the wealth tax so that it could be collected from the regional treasury, a similar measure is being announced in Andalusia. The Government of Juan Manuel Moreno has not yet announced exactly how it will proceed, what formula it is working on, but claimed that it is working on a “technical process”. so that taxpayers can decide whether their taxes will remain in Andalusia or pay taxes at the national level”. Sources from Moreno Executives said, “We will not force anyone to pay taxes in Andalusia.”
About 900 great rich people
In total, there are about 900 major estates paying taxes in Andalusia. An asset greater than 3.7 million euros, The amount of tax due on the great fortunes of the National Government. It will be these taxpayers who will be affected by the new measure adopted by the Board, and they will be the ones who will decide whether the Wealth Tax in Andalusia in this section should be changed or they should continue to pay taxes. It is the great fortune of the Government of the nation that the money will go to the state coffers. Since double taxation is illegal, it is not possible for both taxes to overlap. If inheritance is paid at the regional level, it is not paid for large fortunes at the state level.
The board suppressed assets by subsidizing them by 99% so that “taxes are no longer paid and will not be paid in society.” 16,000 Andalusians having an inheritance between 700,000 and 3.7 million euros Those who paid assets to the previous socialist government in Andalusia with annual collections of approximately 95 million euros will continue to pay nothing to the PP. More than 3.7 million people will be able to decide where to pay.
Increased the temporary Solidarity Tax of Great Chances 623 million euros in 2023According to the figures announced by the Ministry of Finance. This amount was well below the estimate of approximately 1.5 billion when the tax was created. Special, 12,010 major assetsbarely representative 0.1% of taxpayers in SpainThey paid an average fee of 52,000 euros for this tax, in addition to the inheritance tax. It is currently a temporary state tax for 2023 and 2024.
To avoid double taxation, Solidarity Tax taxpayers pay tax only on that part of their assets that is not taxed by their autonomous community under the Wealth Tax. Collections were therefore derived mainly from the large assets of the autonomous communities that partially or fully subsidized the Wealth Tax. This is what Madrid and Andalusia want to avoid, with the principle that the autonomous community collects for the state to collect.
The assets of the great Spanish fortune soared 37% this yearUp to 196.13 billion, despite the war and inflation in Ukraine, according to the Forbes list
Mostly in Madrid
Of the 12,010 people who applied for the so-called solidarity tax, the majority correspond to large assets. Madrid (10,302 taxpayers), contributors 555 million euros. They are followed by Andalusian high net income taxpayers (865), who paid 29.7 million; and the large holdings of Galicia (91) will be paid for in the amount of 9.8 million. The three communities account for more than 95% of taxpayers and collections.
The war broke out when Andalusian President Juan Manuel Moreno announced in September 2022 that he would abolish the wealth tax in Andalusia, following Madrid, as one of the first significant measures of his absolute majority government. Having already eliminated this tax and lowered various regional parts of the personal income tax in the midst of the inflation crisis. The board claimed that the approximately 10,000 foreign fortunes settled on the coasts of Malaga and Cadiz would be registered in Andalusia, which would allow other taxes to be collected and more cash to be made, because by banning Patrimony it would collect more. He also argued that this tribute was now an outdated figure in Europe, and stated that there were wealthy Andalusians who used these tributes. settled in Portugal To avoid paying this tax.
After Andalusia Murcia He also announced that it was closed. Galicia He was aiming for a 50 percent bonus, and at the time other socialist communities such as Valencia were also threatening tax cuts ahead of regional elections. While the Ministry of Finance stepped in to stop this financial struggle that pushed societies to reduce taxes, the Government followed the opposite path and financed the taxes by taxing the profits of banking and energy companies. anti-crisis plans and call social shield, Aid to the most vulnerable families, where inflation is soaring amid Russia’s war against Ukraine. To sideline Ayuso and Moreno, the Treasury created the massive wealth tax that has now been approved by the Constitutional Court.
The Board is investigating how this collection can be withdrawn and accepts the Constitutional provision, but points out that “the creation of the tax has not been stopped.” Disloyalty and abuse towards Andalusia”. “We think that the same doctrine can be used by the National Government to continue to vacate other autonomous powers in fiscal matters, such as the Inheritance and Gifts Tax bonus or other measures we have used to reduce taxes on Andalusians.” Government of Moreno Bonilla