B Law & Tax
27 April 2023

Tax Advisor: Reiteration of the harmful aspect of the Temporary Solidarity Tax on Large Fortunes

The Constitutional Court has admitted the appeal of the Junta de Andalucía and the Community of Madrid on the Temporary Solidarity Tax on Large Fortunes, confirming its initial decision not to suspend it.

The Community of Madrid continues to emphasize that it could infringe fundamental principles such as legal certainty, economic capacity, non-confiscation, as well as the political and financial autonomy of the autonomous communities.

Through a communiqué, the reasons for the appeal have been stated, in which it is emphasized that the tax invades the autonomous competences in the management of ceded taxes, as is the case of the Wealth Tax, which has been 100% subsidized in the Community of Madrid since 2008. According to the exposed reasons, this undermines the financial autonomy of the regions and affects their fiscal policy.

Finally, it is argued that the new tax violates the principles of economic capacity and non-confiscation established in article 31.1 of the Constitution, which states that the contribution to public expenditure must be in proportion to the economic capacity through a fair tax system based on the principles of equality and progressiveness, which in no case should have a confiscatory nature.

B Law & Tax International Tax & Legal Advisors.


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