Civil, Trade, and Tax Law: Key Concepts and Principles

Posted on Feb 26, 2025 in Law

Civil, Trade, and Tax Law: Key Concepts and Principles

Part 1 – Civil Law

The particular interest must not be submitted to the common good. FALSE
We can have legal certainty…the principle according to which we can: Ask for the help of the courts to obtain the application of rules.
Law and justice are not the same. TRUE
Circumstances that limit the application of our legal system: Statehood, territoriality, and temporality.
The EU legislative activity is structured around two types of rules: FALSE
The Spanish Constitution: is the highest norm of our state, the content is divided into two parts: a programmatic and an organizational part, it was approved by referendum on December 6^th, 1978. (All the answers are correct)
Jurisprudence is the legal opinion officially expressed by the Courts: TRUE
Which one is not a legal discipline? RURAL LAW
Personality refers to the incapacity of a person stated by a judicial authority: FALSE
The capacity to act: it does admit graduations, is fully acquired at the age of eighteen, it means the possibility of exercising rights and obligations by oneself. (All the answers are correct)
The civil registry depends on the Justice Minister: TRUE
Corporations, associations, and foundations are natural persons: FALSE
Which one is not an essential element of contracts? The DEFAULT INTEREST
Possession is a temporary right in property: TRUE
Power held by the owner exclusively: FACULTY OF FREE DISPOSAL

Part 2 – Trade Law

In trade law, legal capacity means: persons, free disposal of their goods, legal age. (All the answers are correct)
In limited liability companies the partners are personally liable for social debts: FALSE
Limited liability company: which one is not a compulsory content of the instrument of incorporation?: THE WILL TO FUND A COLLECTIVE SOCIETY
A sole proprietorship company is the one constituted by a single partner: TRUE
Accounting compulsory books: INVENTORIES, ANNUAL ACCOUNTS, AND DAILY
Act of unfair competition ‘’conduct objectively contrary to the requirements of good faith, and therefore prohibit: TRUE
Types of industrial property rights: TRADEMARKS AND TRADE NAMES, INDUSTRIAL DESIGNS, PATENTS, AND UTILITY MODELS
The different procedural actions within unfair competition law may be combined according to the applicant’s strategy: TRUE
For an invention to be patentable it must meet: Susceptible of industrial application, new, involving an inventive step. (All the answers are correct).
The exclusive right of trademarks has a duration of 20 years and may be renewed: FALSE
Contract requirements: CONSENT, OBJECT, AND CAUSE
A public deed is not compulsory in the case of the constitution of commercial companies in all their forms: FALSE
The trade name designates: THE MAIN ACTIVITY OF THE COMPANY

14. A utility model is a sign capable of graphic representation to distinguish the products of an enterprise: FALSE

PART 3 – Tax Law

Which one if the following developments in a neighborhood does not bring along the payment of a special contribution? SPECIAL DUTY ON SOME TRANSPORTATION
Which one of the following is not an example of fees: TOBACCO
The EU Stability and Growth Pact: Prohibits deficits above 3%, aimed to reduce public debt to a maximum of 60% of GDP within 20 years, tried to limit the deficit in 2020 to 0.5%. (All the answers are correct)
Our tax system taxes the following taxable facts: INCOME, WEALTH, AND CONSUMPTION
Other special tax procedures are: NULLITY, RETURN OF UNDUE INCOME, AND ERROR RECTIFICATION
LOFCA stands for ‘’Organic Law on the Financing of the Autonomous Communities’’: TRUE
The types of tributes are: TAXES, FEES, AND SPECIAL CONTRIBUTIONS
Direct taxes are: Wealth tax (IP), Corporate income tax (IS), Non-resident income tax (IRNR). (All the answers are correct)
In which territories is the VAT applied in Spain? All the country except Canary Islands, Ceuta, and Melilla.
Mandatory local taxes: real estate tax, tax on economic activities and tax on mechanical traction vehicles: TRUE
Which one is not a special tax/duty? GAMBLING
Which one is not a procedure of tax application? TAX CRIMES
Aggravated modality within tax crimes occurs when the defrauded quota > 500,000€: FALSE
The reduction for prompt payment consists in a discount of: 25%
Types of tax infractions are: mild and severe: FALSE
The valuation can be refuted with the contradictory expert appraisal: TRUE
The economic administrative claim: It is mandatory before the judicial claim, it is free, it does not require a lawyer. (All the answers are correct)
When the general state budget law isn’t approved by January 1, ‘’the budget of the previous year will apply’’: FALSE
In taxes, the taxable event is constituted by business, acts or facts that show the taxpayer’s ability to pay: FALSE

Basic Concepts Part 1: Chapter 1

Law and justice are not the same, because while the former refers to the set of rules that organize society, the latter is an ideal to be achieved, a social end. The law therefore integrates a specific system of conflict resolution, capable of imposing on individuals both its rules and the consequences of non-compliance. It determines the limits of our actions and at the same time protects us from the overreach of third parties; that is why we say that our rights end where those of others begin, and vice versa.

Legal Certainty is the principle according to which we can all resort to the help of the courts to obtain the application of the rule, but at the same time we can and must know in advance the rule so that it is enforceable to us.

Common Good is an entity superior to the particular interest that must be submitted to the former.

Legal disciplines:

Within Public Law: different specialized disciplines by reason of the subject matter they regulate. Constitutional law deals with the organization and structure of the state, the institutions of government and representation, the exercise and limits of its powers and the rights of the citizen that are considered fundamental. Administrative Law attends to the order in the action of the Public Administrations, and to the relations between them and the citizens. Financial and Tax Law. Criminal Law deals with the protection and protection of the rights of citizens, such as life and physical integrity, property, good social order…Procedural Law regulates judicial proceedings.
Within Private law we distinguish: Civil Law and Commercial Law. Civil law deals with people and their relations with each other, both personal and family and economic – the heritage and the limits of the exercise of economic rights– Commercial Law regulates business activity. Labour Law combines the public and private sectors.

Legal System is the set of rules applicable at a given time and place. The legal system is governed and limited in its application by three specific circumstances.

Statehood: attends to the fact that laws emanate and are applied on a social body, the State understood as the set of people and institutions that organize their life in common precisely through the Legal System.

Territoriality: the laws must be applied in a specific territory, so that to all the cases of fact produced in that territory the rules of their own order must be applied, leaving aside the content of international treaties that allow in certain circumstances the application of the personal law of the individual in private law.

Temporality or validity: means that the applicable rule will be determined by the temporal moment of its application, that is to say that no rules other than those in force at the given moment in which they occur can be applied.

Principles of integration of norms into the system are those of hierarchy, temporality and specialty.

The principle of publicity in our legal system establishes: The laws will enter into force twenty days after their complete publication in the Official State Gazette, if they do not provide otherwise. The temporal effect of the law begins from its entry into force, and cannot be applied to cases of fact that occurred before that moment, that is, it will not have retroactive effect.

The principle of specialty: determines that in case of conflict between general and special rules, it will always be resolved by applying the special rule.

The hierarchy: establishes that the norm of higher rank will prevail over that of lower rank and that of temporality the most recent law over the oldest one is applied to each case. The principle of hierarchy establishes that provisions that contradict another of higher rank will be invalid.

The Spanish Legal System is structured in a hierarchical way, adopting the geometric shape of a pyramid, at the top of which is the Spanish Constitution of 1978. Following the hierarchical principle, never a law of lower rank can contradict the provisions of another of higher rank, and if it does so, this rule will be considered null and void, and inapplicable by the ordinary Courts. In the immediately lower step are the Organic Laws and below these the Ordinary Laws, both reserved in their drafting and processing to the Legislative Power. With the same rank appear the Legislative Decrees and the Decree-Laws, expression of the norms drafted by the Executive on an exceptional basis, based respectively, on the express delegation or on the urgency.

We understand by jurisprudence: the usual way of interpretation of the rules by the Courts, reflected in the judgments they issue. It is therefore the legal opinion officially expressed by the Court and reiterated through its decisions.

The Spanish Constitution, approved by referendum on December 6, 1978, is the highest norm of the state and therefore of the Spanish legal system. The content of the text can be clearly divided into two parts, the first programmatic and the second organizational.

The EU’s legislative activity is structured around four different types of rules: Regulations, Directives, Decisions and Opinions and Recommendations.

Chapter 2

Article 6 of the Universal Declaration of Human Rights (UN, 1948) provides that: “every human being has the right, everywhere, to the recognition of his legal personality”, that is, to be recognized as a person before the law. In the Legal System, human beings are considered as subjects of rights, as well as certain entities, groups or groups of human beings that the Law has personified (legal persons) and therefore, recognizes them as subjects of Law and can be holders of rights and obligations.

Personality refers to the recognition of someone as a subject of rights and obligations, either because he is naturally suitable for it (natural person), or because the Positive Law has provided for it (legal person).

The personality is acquired, from birth and, therefore, since then, a natural person can be the owner of rights and obligations. It is understood that a person has legal capacity when he has the suitability or abstract possibility to be the holder of rights and obligations.

The capacity to act does admit graduations and subdivisions in view of the type of act that is intended to be carried out by the subject of law.

The full capacity to act and, therefore, the possibility of exercising rights and obligations by oneself, is acquired with the age of majority, that is, from the promulgation of the Spanish Constitution, when reaching the age of eighteen.

The declaration of incapacity of a person implies limiting the capacity to act to a person who, in principle, enjoys it, so it is a decision that can only be taken by a judicial authority, as required by the precept previously transcribed.

The Civil Registry: administrative body under the Ministry of Justice intended for the registration of facts concerning the civil status of natural persons, and those others that the law determines.

The following are legal persons:

Corporations, associations and foundations of public interest recognized by the Law. Their personality begins from the very moment when, according to law, they would have been validly constituted.

Associations of particular interest, whether civil, commercial or industrial, to which the law grants their own personality, independent of that of each of the associates’. Legal persons can be classified, depending on their internal structure in: associations, corporations and foundations.

Chapter 3: A contract

A contract is an agreement aimed at creating a binding legal relationship or having some other legal effect.

In our Legal System, contractual freedom is expressed as follows: “The contracting parties may establish the pacts, clauses and conditions that they consider convenient, provided that they are not contrary to the laws, morality or public order”

Binding effect. The validity and fulfillment of contracts cannot be left to the discretion of only one of the contracting parties. Contracts must be fulfilled (pacta sunt servanda). A valid contract is binding on the parties but only on the parties.

The principle of relativity of contracts implies that, as a general rule, contracts produce effect only between the parties who grant them and their heirs.

Types of contracts according to the strength of the parties:

Adhesion contract. Unlike the contract by negotiation, as a limit to contractual freedom (imposition of content), the adhesion contract is constituted by the mere consent of one party, which accepts without discussion the contents of the offer of the other party. Frequently, adhesion contracts contain general contracting conditions – predisposed clauses whose incorporation into the contract is imposed by one of the parties, having been drafted in order to be incorporated into a plurality of contracts (Article 1 Law 7/1998, on general conditions of contract).

A type of contracts according to their shape are formal contracts: is one that requires a certain formality for its perfection, such as the written form or certain solemnities as witnesses or a public deed (f.i:. the donation of real estate).

Essential elements of contracts: The consent: is manifested by the contest of the offer and the acceptance on the thing and the cause that must constitute the contract. The object of the contract is the interests that the contract regulates. In the downstream direction the object of any contract is the obligations of the parties. The benefits of giving, doing or not doing something or service are distinguished. The notion of cause, serves to legally assess each business according to the result that is sought with it (objective cause of the business) or that the contractors have proposed (subjective cause of the business). Form: is the external way of manifesting the contract either orally or in written form. The written form: can be expressed in a private document.

Legal remedies available in case of non-compliance: When an obligation is breached by the debtor, the complying party may make use, of the following actions: claim for performance, claim for resolution, claim for price reduction, claim for compensation

Default interest: Contractual interests can be remunerative – income (or “price of money”) for the use of other people’s capital or moratoriums. Default interest compensates for delayed compliance, whether or not it is excusable.

Chapter 4: The Civil Code

The Civil Code makes a classification of property by distinguishing it between movable and immovable property. In addition, according to their owner, it also classifies them between privately owned goods or public domain goods.

Real rights in English-speaking civil law jurisdictions) are “rights (or interests) in property” (“property rights;” “rights in rem”) and the expression has sometimes been mistranslated as “real property rights.”

Real rights traditional classifications include the following: 1) Temporary rights in property: possession 2) Full rights in property: ownership 3) Limited rights in property, which are subdivided into three large categories: Rights to the enjoyment of property including usufruct, use, habitation, easements, censuses, emphyteusis, and surface; Preferential rights in the acquisition of property including “tanteo-retracto” and purchase option. Security interests in property, including pledge, mortgage, anticresis, pledge without displacement of possession and movable mortgage.

Public Property Registry: as the institution that, aimed at strengthening legal-real estate security, has as its object the registration of the constitution, transmission, modification and extinction of real rights over real estate.

Property is the right to dispose of a thing without limitations other than those derived from the Laws.

The powers generally held by the owner are:

Faculty of free disposal: The owner has the power to alienate, encumber, transform or even destroy the property object of property, except for exceptions specific to the object of property.

Faculty of alienation: The owner can transmit his right for consideration or free of charge, by acts iter vivos or mortis causa, although there are certain properties that have as a basic characteristic the inalienability.

Tax or limit: This is the constitution by the owner of rights over the property in favor of third parties limiting their right.

Transform: the owner can change the nature, form and destiny of the thing, with provision for the exceptions provided for in the special law that regulates the ownership of the certain good

Destroy: The owner understood as the absolute owner of the property can even render useless or even make it cease to exist, but with respect to this faculty there has been an evolution towards its limitation, especially since the right of property is understood with a social function.

Possession and ownership are not the same, they can be complementary or not. You can hold possession of a thing but not own it, and vice versa. Implies:

Faculty of free use: faculty of using the thing to satisfy the interest of the owner.

Faculty of accession: Art. 353, Civil Code: “The ownership of goods gives right by accession to everything that they produce, or joins or incorporates, naturally or artificially”.

Faculties of exclusion: Faculty or right of the owner of enjoyment and enjoyment of the object of property without interference or disturbance by a third party.

Power of claim: Art. 348, Civil Code, paragraph 2: “The owner has action against the holder and the possessor of the thing to claim it.” It refers to the power that the owner has to recover or claim his right.

Both, the possessor and the owner, have rights recognized by legislation. Thus, an owner who is illegally deprived of his property could agree to a vindication action. At the same time, if a possessor is illegitimately dispossessed, he may demand the return of possession.

Our Civil Code states: “Every possessor has the right to be respected in his possession; and, if disturbed in it, he shall be protected or restored in such possession by the means established by the laws of procedure.”

Competences reserved to the General Meeting:

The approval of the annual accounts, the application of the result, the appointment and separation of directors, liquidators and auditors. The modification of the bylaws and the increase and reduction of share capital. The acquisition, disposal or contribution to another company of essential assets as well as the transformation, merger, division or global transfer of assets, the transfer of register office abroad and the dissolution of the company and the approval of the final liquidation balance.

The board of directors: The minimum and maximum number of members of the board must be determined by the statutes, without in any case being less than three or more than twelve and the statutes must establish the regime of organization and operation of the board, which must include, the rules of convocation and constitution of the Board, as well as the way of deliberating and adopting agreements by majority. The Board shall meet at least once a quarter.

Share capital of a Joint-Stock company cannot be less than 60,000 euros and will be expressed precisely in this currency. Fully subscribed and paid up at least a quarter of the nominal value of each of the shares.

SOLE PROPRIETORSHIP COMPANY: The one constituted by a single partner and also the one constituted by two or more partners when all the shares have become the property of a single partner. The constitution of a sole proprietorship, the declaration of such a situation as a result of having passed a single partner to be the owner of all the shares, the loss of such situation or the change of the sole partner as a result of having transferred some or all of the shares.

Chapter 6

Accounting compulsory books: The book of inventories and annual accounts that opens with the detailed initial balance of the company and in which the balance sheets are transcribed with sums and balances, at least quarterly and the daily book, which records day by day all operations related to the activity of the company.

The Commercial Code establishes that at the end of the year: The entrepreneur must formulate the annual accounts of his company that will include: • The balance. • The profit and loss account. • A statement that reflects changes in net worth for the year. • A statement of cash flows, which will not be mandatory when established by a legal provision. • Memory and report.

COMMERCIAL REGISTER: The registrable acts are : The fundamental moments in the life of the company such as its constitution, transformation, merger, division, dissolution and liquidation. Capital increases and reductions, as well as bond issuances. The appointment and dismissal of directors and the granting of general powers. The name and participation of the founding partners, but not the successive transfers of shares or participations or the subscribers of the capital increases.

Chapter 7

Unfair competition Law: is a discipline that regulates relations between individuals, a private law, which ultimately comes to grant an action for protection to any market operator who is affected by conduct contrary to the requirements of good faith deployed by another operator

Unfair competition authorities: At the national level and in the case of Spain; the reference authority is the National Commission of Markets and Competition (CNMC). The CNMC exercises the sanctioning power in matters of competition law and has regulatory capacity to develop laws, royal decrees and ministerial orders. At European Community level powers in this area are conferred on the European Commission, which has a General Directorate for Competition.

Law 3/1991, of 10 January, on unfair competition (LCD): LCD is a rule applicable ‘to entrepreneurs, professionals and any other natural or legal persons participating in the market’ and the purpose is to protect competition in the interests of all those participating in the market, establishing for that purpose the prohibition of all acts of unfair competition, including illegal advertising under the terms of the General Advertising Law.

An act of unfair competition: “any conduct that is objectively contrary to the requirements of good faith is unfair, and therefore prohibited by the legal system.”

The different procedural actions which may be combined according to the applicant’s strategy: Declaratory action of the disloyalty of the act. Action for cessation of the act or prohibition of its future repetition. Action to remove the effects produced by the unfair conduct. Action to rectify misleading, incorrect or false information. Action for compensation of damages, when there has been an intervention of intent or fault of the defendant. Action of unjust enrichment, when the act infringes an exclusive or similar right.

Chapter 8

Intellectual property: Reserved for the protection of more artistic creations in which the personality of the author is reflected, in the case of unique creations. Intellectual Property is included in the field of Civil Law and refers to intangible goods constituted by works of human ingenuity (literary, artistic or scientific) or copyright.

Industrial property is included in Trade Law field, is the set of regulations recognizing and protecting the interests of creators of ideas or discoverers of inventions of industrial application, as well as those who intend to present themselves to their clients under certain signs of identity to consolidate their prestige before them, including: The protection of inventions or intellectual creations of industrial application (patent) The protection of “distinctive signs” of business activity, which serve to differentiate from others the company and the activities of an entrepreneur (trade name), or the product or service offered on the market (the trademark). The trademark is the most important form of distinctive sign, and its regulation serves as a model for the trade name.

Types of Industrial Property rights: Distinctive signs: Trademarks and trade names Industrial Designs Patents and utility models Topographies of semiconductors (chip or microchip)

The rights that protect industrial property have a series of common characters; These are exclusive , they are rights subject to registration, they are territorial rights and they are temporary rights.

Patent: the right of special property that the registered owner of an invention or the person authorized by him, holds over the registered innovation and that enables it for exclusive exploitation for 20 years from the date of concession. For an invention to be patentable, it must meet: It must be susceptible of industrial application, that is, that the object resulting from the invention can be manufactured or used in any kind of industry, including agriculture.

Utility Models: Inventions that, being new and involving an inventive step, consist of giving an object a configuration, structure or constitution from which there is some practically appreciable advantage for its use or manufacture can be protected as a utility model. It is about protecting minor inventions that manifest themselves in forms or structures susceptible to industrial application, such as, utensils, instruments, tools, devices, devices or parts thereof, etc and the period of protection of the exclusive that is recognized to the owner of the model is 10 years.

Industrial design: can be defined as the appearance conferred on a commodity to facilitate its commercialization. On the other hand, the idea that materializes in each case the design must be susceptible to be incorporated into mass-produced objects.

A trademark is any sign capable of graphic representation that serves to distinguish in the market the products or services of an enterprise. Trademarks are regulated on a triple level: national, community and international. The trademark right is acquired from its valid registration with the OPM (Patent and Trademark Office) and recognizes its owner the exclusive right to use it in economic traffic. The exclusive right over the trademark has a duration of 10 years and may be renewed indefinitely for periods of equal duration at the request of its owner, and the corresponding renewal fee must be paid.

Chapter 9: Specialties in the General Regime of Commercial Obligations

Prohibition of the terms of grace and courtesy: Commercial traffic does not tolerate compliance with the obligations more delays than those expressly provided.

Compliance with pure obligations in commercial law: Obligations which do not have a term predetermined by the parties or by the provisions of this Code shall be enforceable ten days after they have been contracted’.

Defaulting: In commercial obligations, the debtor automatically defaults, by not fulfilling its obligation when the contract had a designated day for its fulfillment.

CONTRACT REQUIREMENTS: • Consent of the contracting parties. • Certain object that is the subject of the contract. • Cause of the obligation to be established.

Forms; The Commercial Code or special laws sometimes require compliance with certain formalities. There are legal businesses whose existence is linked to the creation of a document: if the document is not extended in the established form, the business does not exist. Other times the written form is required and the contract is deprived of validity if it is not done in writing. Other times the granting of a public deed is required as an essential requirement: if the deed is not formalized, the contract does not take effect. This is the case of the constitution of commercial companies in all their forms.

The franchise agreement In this relationship, one of the two independent companies (franchising company), is the owner of a certain trademark, patent, method or manufacturing technique or industrial and commercial activity previously prestigious in the market and grants the other party (franchised or franchised company) the right to exploit it, for a delimited time and area and under certain conditions of control, in exchange for an economic benefit, fixing an initial fee, which is complemented by successive deliveries depending on the sales made (royalty or royalties).

The agency contract: a natural or legal person, called an agent promotes acts or trade operations on behalf of others, or promotes and concludes them on behalf of others and always as an independent intermediary, without assuming risk and adventure. Law on the Agency Contract establishes that when the agency contract is terminated, either for a certain or indefinite period, the agent will be entitled to compensation for clients provided if a series of requirements are met.

Chapter 14

The legal framework of the Spanish tax system, composed of the following rules: • Constitution (EC) • General Tax Law (LGT) • General Budget Law (LGP) • The laws that regulate each tax (LIRPF, LIVA, LIS…) • The regulations that develop the tax laws. State taxes can be classified into direct and indirect taxes, depending on whether they tax what are considered direct manifestations of the economic capacity of taxpayers (such as income) or manifestations considered indirect of economic capacity (such as consumption). –

Indirect taxes: They are applied on an indirect manifestation of economic capacity, among others, the circulation of wealth, either by acts of consumption or by acts of transmission: they tax the use of that wealth.

The system of financing and collection of the autonomies is regulated in the LOFCA (Organic Law of financing of the Autonomous Communities).

Royal Legislative, approving the revised text of the Law regulating local finances (LRHL), issued under article 133.1 of the Constitution: …” the original power to establish taxes corresponds exclusively to the State by law.” Local entities may approve the tax ordinances of their Mandatory Taxes, which are: Real Estate Tax (IBI). Tax on economic activities (IAE).Tax on mechanical traction vehicles (IVTM).

SPECIAL DUTIES: Alcohol and alcoholic beverages. Hydrocarbons. Tobacco. Registration of means of transport. The reason of the existence of these taxes apart from its great collection capacity, lies in the consideration that the consumption of these goods generates social costs (think of the health costs of alcohol or tobacco abuse and the air pollution of cars and the use of hydrocarbons in general).

The system of financing and collection of the autonomies is regulated in the LOFCA (Organic Law of financing of the Autonomous Communities).

Chapter 13

The General State Budget Law (LPGE): legislative act authorizing the maximum amount of expenses to be made during the period (one year), in the attentions that are specified and in which the necessary income is foreseen to cover them. The General State Budget Law (LPGE) is the name given to the public budget in Spain. They are considered the most important law for a government in a year and determines its policy in most areas, in addition to being the basis on which the state’s economy will move in that year. The reform of Article 135 EC carried out in 2011, was carried out with this objective: “The State and the Autonomous Communities may not incur a structural deficit that exceeds the margins established, where appropriate, by the European Union for its Member States.” The deficit/surplus: is the negative/positive difference between what is entered and spent each year. The EU Stability and Growth Pact (SGP): Prohibits deficits above 3% (although it has a transitional period); commitment to limit the deficit in 2020 to 0.5% and aims to reduce public debt to a maximum of 60% of GDP within 20 years. The tribute: concept and classes “They are public revenues that consist of pecuniary benefits demanded by a public administration as a result of the realization of the factual assumption to which the law binds the duty to contribute, with the primary purpose of obtaining the necessary income for the maintenance of public expenditures.” •Characteristics: pecuniary/coercive/public law/ established by law/associated with economic capacity/non-sanctioning. •Classes: Taxes/fees/special contributions.

Tax concept: They are the taxes demanded without consideration, whose taxable event is constituted by business, acts or facts that show the taxpayer’s ability to pay”. Special contributions: Concept: “tributes whose taxable event consists in the obtaining by the taxpayer of a benefit or an increase in the value of their assets, as a result of the realization of public works or the establishment or expansion of public services”. Tax elements: Taxable event. Budget set by the Law of each tax whose realization originates the birth of the main tax obligation. Accrual. Moment in which the taxable event is understood to have been made and the main tax obligation arises. Accrual and enforceability may not coincide. Exemptions. Rule that determines that the tax obligation does not arise, despite the realization of the taxable event. Taxable person. Person who is obliged to the Public Treasury for the realization of the taxable event (taxpayer / substitute).

CHAPTER 15

The quantification of the tax obligation: it is the core element of the “procedures for the application of taxes”. The quantification is sometimes carried out by the Taxpayer (self-assessment) and in others by the Tax Administration (liquidation): and this form of relationship between them is channeled through tax procedures.

The procedures for the application of taxes Ordered chronologically, it is normal to start with the management of the tax (settlement), then its collection and then, perhaps, the inspection.

Tax management procedures are: Basically, the exercise of administrative functions aimed at the processing of declarations, selfassessments, data communications and other documents with tax significance. Data verification procedure; Limited verification procedure; Value checking procedure; contradictory expert appraisal procedure. The Inspection Procedures are: a set of actions necessary to carry out an exhaustive verification and investigation of the compliance with tax obligations and, where appropriate, practice the corresponding settlement. They are carried out at the state level by the Inspection Body.

The minutes are the documents: that collect the result of the inspection actions, usually contain a “liquidation proposal”. Minutes of conformity: The one whose proposal for regularization is accepted.

Minutes of disagreement: Minutes whose proposal for regularization is rejected.

Collection procedure: It consists of the exercise of the administrative function leading to the collection of debts and tax penalties. It has two clearly differentiated procedures: collection in voluntary period (PV) and in executive period (PE).

Review and challenge: The acts and actions of application of taxes and acts of imposition of tax penalties can be modified ex officio (review) or at the request of a party (challenge).

The challenge typically takes place through the following remedies: Action for reconsideration. Economic-administrative claims. – It is also possible to challenge through “special procedures”: Nullity Errors rectification Return of undue income

The economic-administrative claim: It is mandatory (requirement to access the judicial route). It is free and does not require a lawyer or solicitor

Differences between tax infraction or a tax crime. the amount left to be paid and the need for fraud to concur are the most relevant elements. Tax crime amount goes from 120,000 € / € 600,000 (aggravated modality).

Tax sanctioning reduction for prompt paying: applies to all infractions, except those reduced by agreement. It is applied on the final penalty, once applied, if appropriate the reduction for conformity. The reduction is 25%.

Tax crimes penalties: Normal modality: Prescription: 5 years. Penalties: imprisonment (1-5 years) and fine of up to seven of the defrauded quota. Aggravated modality: Prescription: 10 years. Penalties: imprisonment (2-6 years) and fine of double to sevenfold.

Civil, Trade, and Tax Law: Key Concepts and Principles