B Law & Tax
30 November 2023

Tax Advisor: Constitutional Court Ruling: Rejection of Appeals against Wealth Tax

The majority of the Plenary rejected the unconstitutionality appeals filed by the Andalusian Regional Government and the Galician Regional Government against the Temporary Wealth Tax.

The arguments presented by these regions were similar to those analyzed in a previous ruling that dismissed a similar appeal from the Community of Madrid.

The only difference was that the Andalusian Regional Government and the Galician Regional Government did not emphasize the alleged infringement of certain constitutional principles, unlike the Community of Madrid.

 

Rejection of Appeals and Argumentation on Wealth Tax

The Constitutional Court’s statement dismisses the alleged violation of the ius in officium of the deputies when introducing the wealth tax through an amendment. It is argued that there is no evident lack of connection between the amendment and the original initiative, as both aimed to generate public revenue to address the energy and price crisis caused by the war in Ukraine. Additionally, the violation of financial autonomy is ruled out, indicating that the wealth tax complements the Wealth Tax and does not affect regional competencies.

It is highlighted that elements such as the minimum exemption in the Wealth Tax will continue to be determined exclusively by the autonomous community, with no changes introduced by the wealth tax. Finally, it is emphasized that the wealth tax is not retroactive, as it applies with reference to specific dates and not to a fiscal period, thus complying with the principle of legal certainty.

 

Individual Votes of Judges: Questioning the Constitutionality of  the Wealth Tax

Judges Enríquez Sancho, Arnaldo Alcubilla, Espejel Jorquera, and Tolosa Tribiño issue individual votes in both rulings, arguing that the unconstitutionality appeals filed by the Andalusian Regional Government and the Galician Regional Government should have been accepted.

They propose declaring Article 3 of Law 38/2022, which establishes the temporary solidarity tax on wealth, unconstitutional and null. The individual votes argue that the contested law does not respect the financial and political autonomy of the autonomous communities, limiting their ability to defend their interests. Additionally, they point out that the approval of the law does not comply with democratic principles, the political representation rights of minorities, and the principle of tax legality.

 

In summary…

The Constitutional Court rejected the unconstitutionality appeals from the Andalusian Regional Government and the Galician Regional Government against the temporary solidarity tax on wealth. The arguments were similar to a previous case from the Community of Madrid. The ruling stated that the amendment introducing the tax did not violate the Constitution and that the tax did not affect regional financial autonomy. However, some judges issued individual votes questioning the constitutionality of the tax, arguing that the appeals should have been accepted. They propose declaring Article 3 of Law 38/2022 unconstitutional, claiming that the law does not respect the autonomy of the autonomous communities and criticize the approval for not complying with democratic and tax legality principles.

 

 

 

B Law & Tax International Tax & Legal Advisors.

 https://www.blaw.es/

“In B LAW&TAX we specialize in international tax advisory services for both companies and individuals. If you would like to obtain further information, we would be delighted to assist you at 917817194 or at  [email protected]