Spanish tax inspectors fear that the Catalan proposal to finance and manage every tax paid within the community is unconstitutional, according to the State Tax Inspectors Association. The body, which includes roughly 70 percent of inspectors, argues the plan would harm other regions and fragment the national Tax Agency, the AEAT. Officials also warn it could weaken Spain’s broader fight against tax fraud.
A current point is that ceding 100 percent of Catalunya’s collected taxes does not have legal backing under the existing framework. The Constitution, the LOFCA, and the law governing this financing system (Law 22/2009) do not anticipate transferring certain taxes, such as Corporate Tax, to the Catalan administration. Neither the Catalan Statute nor the 2010 tax-transfer law reflect this possibility.
“The present legal framework would not permit the transfer unless LOFCA is amended to include a singular Catalan provision”, explained the association spokesperson, José María Peláez, during a press conference. Yet doing so would also breach the constitutional principles of equality and solidarity between regions, since Catalunya would contribute less to state finances, effectively granting it advantages.
The Govern’s proposal creates a fund to cover the state’s common expenses (the Crown, the Army, etc.) and another aimed at ensuring territorial balance, both subject to political negotiation. Inspectors say that the amount earmarked would not compensate for Catalunya’s current contribution to the inter-territorial compensation fund and the guarantee of essential public services. “Fiscal independence would allow Catalans to receive public services like education and health that other regions may not enjoy”, warned Peláez.
Catalunya accounts for about 20 percent of national GDP. If the region retained all tax revenues, the other communities would receive a smaller share, leaving their residents worse funded. There is also concern that the proposal could pave the way for Madrid and the Balearic Islands, the other two wealthy regions, to pursue similar arrangements, effectively reducing the funds available to the rest. “This would deprive the state of achieving social and territorial cohesion among all communities and citizens”, Peláez added.
Fraud Prevention and Public Services
Another argument centers on the practical disappearance of the Catalan Tax Agency’s presence if all taxes were ceded to the regional level, with consequences for staff numbers and information integrity. Roughly five thousand workers could be affected, and data access could become fragmented. This is particularly relevant since the Basque model already shows fragmented information flows. “Vast gaps in information in regions like the Basque Country undermine controls, and Catalunya represents a much larger share of GDP, making the risk more significant”, Peláez stressed.
The national effort to combat tax fraud costs the AEAT around 15 billion euros annually. A rough proportional estimate would place Catalunya’s share at about 3,000 million euros. In an increasingly globalized world with potential cross-border inspections, it is hard to understand why the core financial backbone of the AEAT would be fractured. The association’s president, Ana de la Herrán, underscored that the agency’s information systems and databases are essential to a coherent national strategy against fraud.
The debate continues as the Catalan proposal moves through a political landscape where fiscal autonomy is weighed against national solidarity. Observers note that any reform would require careful calibration to avoid weakening Spain’s unified tax administration and its capacity to monitor, compare, and enforce tax compliance across all regions. As discussions progress, analysts suggest that the path forward will hinge on balancing regional governance with the integrity of national tax enforcement and equal access to public services for all citizens.
The broader implication of these discussions touches on how revenue allocation shapes public services, regional development, and the social fabric of the country. Proponents of greater regional control argue it could tailor services more closely to local needs. Critics warn that bold steps toward fiscal fragmentation could erode the shared fiscal framework that sustains universal education, healthcare, and other essential programs across Spain. The ongoing dialogue reflects a larger question: how to modernize fiscal arrangements while preserving unity and fairness for every region and resident.