Financial Activity, Budget, and Tax Law in Spain

Posted on Dec 8, 2024 in Law & Jurisprudence

Financial Activity of Public Bodies

Item 1 Financial Activity

Public bodies carry out various activities to meet public needs using economic means.

Features:

Public activity developed by public bodies
Its object falls on income and expenditure
Instrumental character
Economical
Subject to planning and control

Hacienda Post

Based on 3 different approaches:

Subjective (the body which carries out financial activities)
Objective (public property)
Functional (financial activity itself)

Features HP:

Public ownership
Passive and active aspect of their subject
Rights and obligations
Economic content

Financial Law

It is a branch of public law that regulates the financial activities of the state and other public bodies. It is the concept, content, revenue, and spending.

Public Budget

Item 2 Public Budget

It is an economic and legal document which reflects all financial activity planned by a public body in each exercise, which has to fulfill the principle of legality and a balanced budget. Besides, all financial activity must be collected in a single budget with all income and expenditure, and the range is one year.

Budget Principles

1. Principles of Unity and Universality: A single budget, with all items of income and expenses.

2. Principle of Temporality: A period of one year.

3. Specialty Principle: Can be considered under 3 aspects:

Quantitative (cannot overcome its own expenditure on a given lot of what was agreed in the budget to LGP)
Qualitative (not able to change the destination for each budget item)
Temporary

4. Principle of Stability: The absence of a budget deficit.

Contents of the General Budgets

A. Purpose of the Budget

Must provide content that is based on income and expenditure that will be done during the course in an orderly manner so that it is possible to know the financial activities of the State.

B. Scope of the Budget

Should include all the income and expenditure of the public sector.

C. Structure of the Budget

Estimates are subject to approval annually by an ordinary law.

1. Classification Match Budgets Organic: Is the distribution of both income and expenditure between the various management centers.

2. Economic Classification: According to the economic category:

Capital Flows (corresponding to the exercise itself)
Capital Operations (covering several years)
Financial Operations (are the accounts of the Group 5)

Economic classification of operating expenses (personnel costs), capital operations (actual investment), and financial transactions (changes in assets and liabilities).

Economic classification of operating revenues (taxes), Operations capital (disposals), and Financial Operations (changes in active and passive simulator).

Budget Procedure

Item 3 Budget Procedure

It is the body of work in connection with the preparation of the budget each year.

1. Under Development

1. Setting the goal of fiscal stability: Are set by the Government within the first semester of each year, is referred to Parliament for debate, and if not approved, developing a new target in 1 month.

2. Preparation of budget scenarios defined: Budget balances and basic estimates of income and resources for public spending.

b. Phase of actual development: Will take place throughout the task of preparing the budget each year. It is a financial document which reflects the state pension, income, and expenditure and is divided into three phases:

Proportion of pre-preparation and partial formation of the preliminary draft budget law and adopted by the Government.

2. Phase preliminary approval

The processing is done through 4 partial phases:

a. Discussion of the entire project by the full House of Representatives with the need to be approved the overall amounts, then the project moves into the Congressional Budget Committee, and later the project is subjected to a final debate by the full House of Representatives, referred to the Senate for discussion first of its Committee on Budgets and then in full.

The limitations that exist on the power of Parliament to the approval of the budget:

a. Existence of certain items where not supported Talk. (Those items that pose an obligation that has been previously contracted)

Restrictions on the amendment (limitation in all those amendments implying an increase in expenditures or decrease revenues.)

Non-restrictive (Credit extendable).

3. Phase of Execution

The budget involves obtaining funds (revenues) and the implementation of expenditure. The execution, EXPENSES, takes place in 2 stages:

1. Organization of Spending: Spending authorization or approval, commitment spending, and recognition of the obligation.

2. Payment Authorization: Authorization of payment and payment.

The execution is carried out REVENUE by two sub-phases: Recognition of the right, and Extinction of rights for public administration.

4. Liquidation Phase

Task relevant accounting year that ended conducts exercise to get the results budget management.

Budget Control content

1. Control Function according to its scope:

Lens (covers the entire management of the budget)
Subjective (persons involved in the management of public funds)
Temporal (control is related to the budget system itself that has been adopted)

2. Keeping with his character:

Constitutional (which it will cover the call control of legality)
Objective (to verify the proper handling of funds public)

3. Its intended purpose

Types of control as a body that serves as the control:

Internal Control (through the Government)
External Control (through Parliament)

According to the intended aim of the role:

Control of Legality (check the proper implementation in the budget)
For Opportunity (consider budget management)
Control Efficacy (analyzing the results of management)

Tax Law: General Aspects and Sources

Item 4. The Tax Law. General Aspects and Sources in the legal system.

1. Concept, Origin, and Class

1.1 Definition of Tax Law

It is a part of the financial law regulating all matters relating to taxation.
Professor Ferreiro, University of Barcelona, defined it as that branch of law setting out the main rules concerning the establishment and collection of taxes and analyzes the legal relations resulting therefrom.

According to Professor Jalviñana, it is the set of principles and rules governing the legal status effective levy of taxes under the rule of law both in determining the … of taxpayers and the activities of public administration
for assessment and collection.

Principle of Legality: It means that should be taken into account all applicable legal requirements. It is important both in private law and public law.

1.2. Origin of Tax Law

Tax law comes to the modern conception of the tax. Previously there have been taxes based on the de facto power, other established through an annual distribution, based on the total amount of revenue established by way of anticipation, the various tax laws.

In those moments before could not yet speak of its existence as such, from the time when there was even a real law within which to manifest principles and provisions.

When later the taxes are integrated into a legal relationship where they can say that it arises because the tax law, understood as legal principles to such exactions as methods developed by the science of law.

Thus the institution that gives coherence to the meaning of tax law that currently represents the primary means of obtaining resources for public bodies. That’s why so much interest and development has evolved so much.

1.3. Classes Tax Law

a. Material or Substantive Tax Law: Which contains all the rules governing the principal legal regulation and ancillary. Everything about the tax liability.

b. Formal Tax or Administrative Law: Which contains all the rules governing administrative activity in terms of its objective is to ensure compliance with tax obligations and relations between government and individuals.

It deals with tax procedures to tax management, example:
The collection, tax review procedures, inspection, and sanction …

c. Special Section of Tax Law: Refers to the various taxes that make the tax system (VAT, corporation tax)

d. General Part of Tax Law: Everything else, the tax law as a whole unless the special part.

2. The Tax Juridical

A. Concept

From the moment that the levy of taxes is based on the law, the first building on the tax law was developed around the legal relationship called tax

For Professor Jarach the tribute consists of a cash benefit to a relationship based on the law between two subjects:

1. One which has the power to enforce this provision.
2. The one that is required for compliance. .

There exists a particular tax liability two subjects, both sides against proposals: one that will be the active part which has the power to enforce the obligation necessarily be a public entity (the Treasury) and the passive part that is required to a certain compliance. It is called taxable taxpayers …

The link tax law is the connection that occurs between the two sides against wearing.

3. Principles of Tax Law

All those basic aspects that govern the entire tax law upon establishment of taxes and in its application at any time should respect certain principles of tax law.

Constitutional tax principles: they are collected in the current Constitution in Article 31 (previously did not have this qualification). Professor Calvo Ortega if he proceeded to qualify as constitutional because of its importance to the tax law section 31 divided into three sections:

Article 31

1. All contribute to sustain public expenditure according to their economic capacity, through a fair tax system based on the principles of equality and progressiveness that in no case shall be confiscatory scope.

2. The expenditure make an equitable allocation of public resources, and its programming and execution shall comply with criteria of efficiency and economy.

3. Only personal or property of a public nature may be established under the law.

1. Principle of Legality

This principle is enshrined in Article 31.3 and Article 3 of the new General Tax Law.

May be established 31.3. Only personal or property of a public nature under the law.
3.1. The management of the tax system is based on the economic capacity of persons required to comply with taxation and the principles of justice, universality, equality, progressive, equitable distribution of tax burden and not confiscatoriedad.
3.2. The application of the tax system is based on the principles of proportionality, effectiveness and limitation of indirect costs of compliance with formal obligations and ensure respect for the rights and guarantees of tax obligations.
According to this principle we must understand the law in its strict sense, ie as a rule of law adopted by the legislative body (Parliament), as an ordinary law.

It implies a need for all the acts of the tax area should be subject to the law in force, ie in terms of the legal framework.

For all branches of public law principle is binding, not the case in private law, where they can carry out acts not covered by the law (customary or general principles, for example).

A kind of referral is the First Reserve Act, on the one hand, certain matters must necessarily be regulated through a law, and secondly, those matters governed by a law may be amended only by another law .

This principle is enshrined in Article 133 (paragraphs 1 and 3) of the Constitution.

133.1 The primary power to raise taxes is vested exclusively in the State by law.

133.3 Every tax benefit affecting State taxes must be established by law.

The new General Tax Law in its Article 8 enumerates a list of possible elements that make up the tribute that must necessarily be regulated by law.
8. It will be regulated by law in any case:
a) The definition of taxable transactions, the accrual of the tax base and payable, setting the tax rate and other factors directly determining the amount of tax due, and the establishment of presumptions that do not support test otherwise.
b) The assumptions that give rise to tax obligations to make payments on account and the maximum amount.
c) The determination of the tax required under paragraph 2 of Article 35 of this Act and of those responsible.
d) The establishment, modification, deletion and extension of exemptions, rebates, allowances, deductions and other benefits and tax incentives.
e) The establishment and amendment of the charges and the obligation to pay interest on late payments.
f) The establishment and amendment of the statute of limitations and expiration as well as the causes of interruption of the computation of limitation periods.
g) The establishment and amendment of tax violations and penalties.
h) The obligation to submit declarations and self-assessments regarding compliance with the tax liability of principal and payments.
i) The consequences of failure of the tax liability on the effectiveness of the acts or legal transactions.
j) The obligations between individuals resulting from the taxes.
k) The cancellation of debts and penalties and granting tax holidays and remove it.
I) The determination of acts likely to claim economic-administrative.
m) The cases in which appropriate interventions to establish a permanent tax.

2. Principle Economic Capacity to Contribute

This principle is enshrined in Article 31.1 of the Constitution and Article 3 of the General Tax Law.

31.1. All contribute to sustain public expenditure according to their economic capacity, through a fair tax system based on the principles of equality and progressiveness that in no case shall be confiscatory scope.
3.1. The management of the tax system is based on the economic capacity of persons required to comply with taxation and the principles of justice, universality, equality, progressive, equitable distribution of tax burden and not confiscatoriedad.
3.2. The application of the tax system is based on the principles of proportionality, effectiveness and limitation of indirect costs of compliance with formal obligations and ensure respect for the rights and guarantees of tax obligations.
Both at the time of establishment of taxes and their implementation has to take into account the different economic capacities of the taxpayer.

A greater financial capabilities, increased tax burden.

This principle has 4 functions:

a. It is a precondition of enforcement, ie the system was established because there is an economic capacity.

b. Represents a limit, the tax burden may not exceed one’s ability to pay.

c. Represents far tax that is paid more or less according to economic capacity.

d. Constitutes a guarantee for the taxpayer, there is taxation, the taxpayer must have economic capacity. The lack of economic capacity exempts tax bills.

3. Principle of Generality

This principle reflected the beginning of Article 31.1 of the Constitution and Article 3, the new General Tax Law.

31.1. All contribute to sustain public expenditure according to their economic capacity, through a fair tax system based on the principles of equality and progressiveness that in no case shall be confiscatory scope.
3.1. The management of the tax system is based on the economic capacity of persons required to comply with taxation and the principles of justice, universality, equality, progressive, equitable distribution of tax burden and not confiscatoriedad.
3.2. The application of the tax system is based on the principles of proportionality, effectiveness and limitation of indirect costs of compliance with formal obligations and ensure respect for the rights and guarantees of tax obligations.
This principle must be interpreted strictly, not all taxpayers contribute to the payment of taxes, in must be combined with the principle of economic capacity.

Should be extended to all citizens, but whenever there is economic strength.

Can be understood in two senses:

a. Subjective: Means that everyone should contribute according to their economic capacity.
b. Objective: Acts that reveal the existence of economic capacity should be subject to taxation.

The main thing that raises this principle is the existence of tax privileges and exemptions or subsidies for example.

Provided that the tax laws provide for application of these privileges should not be extended beyond certain limits, your application must be based on fair and reasonable criteria.

4. Principle Equal Tax

This principle is enshrined in Article 31.1 of the Constitution and Article 3 of the General Tax Law.

This principle can be understood as a double sense:

a. Horizontal: Should be treated the same taxpayers who have the same economic capacity.
b. Vertical: Should be treated unequally those taxpayers who have a different economic capabilities.

The same tax benefits for equal, unequal to the unequal tax benefits.

5. Principle of Escalation

This principle is enshrined in Article 31.1 of the Constitution and Article 3 of the General Tax Law.

31.1. All contribute to sustain public expenditure according to their economic capacity, through a fair tax system based on the principles of equality and progressiveness that in no case shall be confiscatory scope.
3.1. The management of the tax system is based on the economic capacity of persons required to comply with taxation and the principles of justice, universality, equality, progressive, equitable distribution of tax burden and not confiscatoriedad.
3.2. The application of the tax system is based on the principles of proportionality, effectiveness and limitation of indirect costs of compliance with formal obligations and ensure respect for the rights and guarantees of tax obligations.
A. Progress comes from the mathematical field, more than proportionate increase. Faced with increased economic capacity of the taxpayer produces more than proportional increase in the tax burden.

b. Proportionality: With an increase in economic capacity produced a proportional increase in the tax burden.

Most direct taxes (income tax for example) are progressive, whereas most indirect taxes are proportional (VAT, for example).

6. Principle not Confiscation

Top regulated in Article 31. The tax system is confiscatory when in a short time reach such high levels that greatly reduce the ability of the taxpayer. This principle is not as important as those already mentioned.

There are also a number of principles are not so relevant, and also contained in the Constitution, which have a broader scope:

a. Principle Respect for Private Property (Article 33)

b. Principle of Respect for Economic Freedom (Article 38)

c. Principle of Legal Certainty (Article 9.3). The citizens are protected by legal regulations. Any action by the Treasury against this principle will be dismissed. However, constantly undermines this principle by legislation and changes continuously taking place. All years are any changes, especially being the most exposed to it. This leads to legal uncertainty leads to a lack of access to the legal rules in each case applied.

Similarly, the new General Tax Law has been introduced in Article 3 of a series of principles that have an impact on tax procedures. Are those that are manifested in the relationship between Treasury and taxpayer: Top of collection, review … . One could cite yet another set of principles with a more general: the principles of proportionality (the acts are proportional to the acts challenged), efficiency (that actions are effective) and limitation of indirect costs incurred in discharging the obligations formal (are costs such as transport, office …), ensuring respect for rights and safeguards of tax obligations.

Community Principles

The Spanish tax law should take into account these principles come from the Treaty establishing the European Community 1992

The principles, which may have implications for the financial system are of two types:

A. Principles to Limit the Financial Sovereignty of Member States

Within this group there are two different types:

1 .. Top of Financial Strength. Established in Article 3A-3 of the Treaty establishing the European Community. It obliges member states to maintain stable prices, sound public finances and balance of payments. It leads to a limitation of the public deficit and a pursuit of economic stability, entailing a series of fiscal and public borrowing constraints.

2 .. Subsidiarity Principle Laid Down in Article 3B. Is general in scope and serves to define those powers of public authorities at national and other EU authorities.

B. Principles that Directly Affect Individuals as Citizens of the European Union.

Within this group there are two different types:

1 .. The Principle of Non Discrimination (Article 6 EC). It provides that no citizen should be discriminated against because of their nationality.
2 .. The Principle of Free Movement of Persons, Goods, Services, and Capital that are essential to the legal content of the single market.

4. Sources the Tax Law

National sources are the law, custom and general principles of law. Hierarchical order from national sources. 1st level: The Constitution, 2nd level: Organic Laws. 3rd level: ordinary laws, executive orders and legislative decrees.
Legislative Decree:

The legislative decree is enshrined in Article 82 of the Constitution.

Article 82

1. The General Courts may delegate to the Government the power to make rules with force of law on specific matters not included in the previous article.

2. The legislative delegation must be given by a basic law when its purpose is to draw up texts in sections, or by an ordinary law in the case of consolidating several legal texts into one.

Legislative decrees are an exceptional way on the common legislative procedure.

They are issued by the Government as a result of a delegation of powers of the courts in determining the matters to be legislated, the term and provides a further control of the legislature.

That delegation is established either through a framework law – to establish a text articulated – or through an ordinary law – to make a consolidated text.

A revised text is a legal text by which to unify a series of laws that were scattered and in force. In the beginning was quite used to the tax system, over time ceased to be used but again have again become used to certain taxes in 2004.

d. Provisions Regulations

Legal rules are not from the legislative body are issued by the Administration. Should the Government proceed are known as decrees, however, if coming from a particular ministry are known as ministerial order.

They take the form of regulations, which are used to develop a law, therefore, are subordinate to them and are useful for organizational and operational matters of the administration itself.

They are used quite as much in the General Part of the Tax Law (in the development of certain areas of the GTL, including the regulation of tax revenue) as in the Special Part (in addition to their own each tax law.

International Sources

International Treaties are all those resolutions adopted by a State with one or more other States. B. Community law rules of Community law 1. Standard Originally involves the entire set of principles and provisions contained in the Treaties, the Treaty of Rome of 1957 with the following modifications carried out by the Single Act and the Treaty on European Union. 2. Normas secondary Community law
Arise as a result of Article 189 of the Treaty of Rome of 1957 and may consist of the 4 following ways. 1. Regulations (general, are for all Member States), 2. Council (intended only for certain Member States) 3. Decision (for all Member States of destination) and 4. Recommendations

Other Possible Sources

Spanish law is the law, custom and general principles.

Application of Legal Rules

Item 5. The application of legal rules

1. Efficacy of Tax Regulations in Time

This is regardless of the fact that legally binding tax rules regarding the timing of implementation.

This took us 3 issues:

A. Beginning of the Effective

At what point the tax rules come into effect, from which time may apply.

The previous tax law generally does not specify this aspect, referred to Article 2 of the Civil Code.

1. The laws come into force twenty days after its complete publication in the Gazette, if they do not require otherwise.

Instead, the new LGT that regulates itself, in Article 10.1, which agrees with the wording of Article 2 of the Civil Code.

10.1. The tax rules come into force 20 calendar days of its complete publication in the Official Gazette concerned, if they are not available otherwise, and shall apply indefinitely, unless a deadline is given.

With the expression if not stated otherwise, we mean that if you say otherwise, no need to wait those 20 days.

Comments on the Entry into Force:

Initially 1. Within tax rules generally take effect the day following its complete publication. This is because the standard itself expressly so provides. In the final disposition (the 11th) of the General Tax Act provides that this law came into force on 1 July 2004.

2. For many occasions when it comes to legal rules that modify previous rules is left to spend an extended period of time for entry into force. Approximately 6 months, this is what has happened in the new general tax law of 18 December to 1 July 2004.

3. In order to allow time for taxpayers to greater knowledge, understanding, and assimilation of the new law.

B. Cessation of Tax Rules

Tax rules may have ceased for 4 reasons:

1. For having missed the deadlines this term when so provided in the rule. Laws may have a duration determined. Virtually never seen in the legal rules, often have an indefinite period.

2. When a new law equals higher ranking in the previous repeal. This is seen in the repealing one of the new general tax law.

3. Because a new standard of equal or higher rank is incompatible with respect to the previous standard. The new standard tacitly repealed (not expressed as in the previous case) the previous standard.

4. Under Constitutional Court. This happened with the income tax was declared unconstitutional.

C. Retroactivity Possible Questions

The retroactivity is the possibility of bringing back in time the implementation of a new rule, prior to publication.
The retroactivity is precluded by Article 10.2 of the new general tax law:

10.2 Unless that otherwise, the tax regulations will be prospective and apply to taxes without accruing tax period from its entry into force and other taxes whose tax year starts since.

Just as in Article 9.3 of the Constitution

9.3. The Constitution guarantees the principle of legality, the hierarchy of norms, advertising standards, the non-retroactivity of punitive provisions unfavorable or restricting individual rights, legal certainty, accountability and prohibition of arbitrariness of public powers .

This is not possible can also be found in Article 25 of the Constitution

25.1 No one may be convicted or sentenced for actions or omissions which when committed did not constitute a crime, misdemeanor or administrative offense, according to existing legislation at that time.

Finally, Article 10.3 of the LGT provides:

10.3. No However, the rules governing the procedure of tax violations and penalties and surcharges of retroactive effect in respect of acts which are not binding when your application is more favorable to the party concerned.

2. The Effectiveness of Tax Rules in Space

To apply a tax rule is necessary to know whether such application can perform on a particular place and about a certain person.

It is what is known as tax criteria:

Initially, within the subject criterion,

one can distinguish 2 principles:

1.Principio personality

Tax rules are applied to all nationals of a country.

2.Principio of territoriality

Tax rules are applied to persons or property in the very territory of a country, regardless of the nationality of that person. It expresses the difference between nationality and residence.

The LGT in section 11 determines: taxes are enforced according to the criteria of residence or territoriality established by law in each case. Failing that, personal taxes are required under the criterion of residence and other taxes under the criterion of residence and other taxes under the criterion of territoriality which is best suited to the nature of the charged object.

Established by law in each case, means that it is subordinate to that specified by the legislation of each tax.

Therefore, knowing when which of the two criteria are applied, must be taken into account as determined by the Act of each tax.

3.La international double taxation

When different countries by applying the criteria of residence and territoriality on a single person can manifest the so-called double taxation.

International double taxation occurs when one person is subject by various countries to the implementation of several tributes identical in the same time and for the same cause.

For example, a citizen Bilbao traveling to France to perform work promptly and charged for this certain amount.

It’s flawed from a technical standpoint prosecutor. In principle should not be given and if given should be corrected.

To do this, they take a certain number of measures and methods to correct possible defects:

A. Measures

a.. Unilateral measures: those that take each country within its internal rules.

b.. Bilateral action: those that take each country with each of the bulk of the remaining states. Such measures are manifested through international conventions.

c.. Multilateral actions: those taken within supranational level. The Treaty on European Union for example.

B. Methods

a.. Methods of exemption
A country exempts those rents, property, estates … obtained abroad.

1 Derogation full: full exemption for such income, property, estates …
2 Exemption with progression: the rents, property, estates … etc. are not recorded in the country of residence but will be taken into account to calculate the average tax rate.

b.. imputation methods
A country also taxed the income coming from abroad as well as the income of the country of residence.

But after deducting taxes paid abroad.

1Imputación full: they can deduct all the tax paid abroad.
2Imputación ordinary: just be deducted for the average tax rate.

4.Interpretación of tax regulations.

To develop this point we refer to the General Tax Law in Articles 12, 13 and 14.

Article 12: This article makes a very common expression in the former 1963 law as is referred to another law: the Civil Code. Tax rules are interpreted in accordance with the provisions of paragraph 1 of Article 3 of the Civil Code. The article identifies five criteria referred to the general rule which also applies to Taxation Law:

4Según the proper meaning of words.
5Según his reference to context.
6Según historical and legislative background.
7Según current social reality in every moment.
8Según the spirit and purpose of the rule.

Article 12 provides that until then defined by the tax rule, the terms used in its rules shall be construed in accordance with its legal sense, technical or unusual, as appropriate. The task of interpretation of tax regulations is conducted by the Russia’s Ministry of Economy and Finance, under the powers conferred to it the Tax Law, and is carried out through ministerial orders.

Article 13: Determines that tax obligations are required under the legal nature of the act, event or business carried on, whatever the form or type which would have given interested parties, and regardless of the defects that could affect its validity.

This raises the possibility of applying for this thing perfectly attainable in other branches: the analogy. The analogy can be applied in general terms of law, any question not specifically regulated in implementing other related and self-regulated.

The Civil Code in its Article 4 states that carry the analogy of the rules when did not include a specific course but regulate other similar between identity before noticeable reason.
The analogy thus may be useful to tax regulations. From the applicative point of view the analogy is not possible due to the dependency on the law interpretations, however, Article 14 determines that the analogy is not permitted to extend beyond its strict terms the scope of the taxable event of exemptions and other benefits and tax incentives.

This means that the analogy itself can be used from the standpoint of interpretive tax regulations provided that does not concern the essentials of the law imposes.

Tax act: this act done by one person and gives rise to the application of the tax.

5.Conflicto in the implementation of tax regulations and simulation

Conflict (Article 15): this figure the new tax law includes what is traditionally called fraud of tax law: is a form somewhat ambiguous when it actually manifests.

Do not confuse the conflict (Fraud Act) with another modality as the fraud: tax fraud. In this case we are facing a wrongful behavior. Shall entail the imposition of sanctions. When we speak of conflict do not speak of any wrongful conduct. Only inappropriately used tax legislation rather than apply another.
Thus differentiating between:

a.. Norma tax evaded: that should be charged
b.. Standard Coverage Tax: that misapplies

The General Tax Law in its Article 15 defines the conflict as you avoid all or part of realization of the fact or minore tax base or tax liability by any act or businesses in which the circumstances mentioned.

For your statement as such will need to be prepared a preliminary report by an Advisory Committee was given a deadline to appeal and ultimately the commission will issue the final report with the statement of the acts were done or not in conflict.

Simulation (Article 16): You create a separate legal appearance to reality, either because the reality is different (simulated absolute) or because it is different in the way it appears (on simulation). Article 16 dictates that if implemented, will require default interest and, where applicable, the appropriate penalty.

Item 6. The power of taxation can be defined as the power to establish a system of income and expenditure position to ensure the state’s objectives to be a manifestation of state power or public. and distinguishing the concepts of power and powers of taxation original tax legislation. The power of taxation the state has exclusive competence to regulate the General Treasury, the State also has a number of powers over the organization of the Autonomous Communities and local Corporations. Power tributary of the Autonomous Systems support 1. Separation system: the various taxes are divided between the central state and the autonomous territories, junction system: the State has the sole power to levy taxes and collect them. Mixed Systems (listed traits separation and union). b) special arrangements because of the territory. Scheme concert or convention fixing the total amount that each of the provinces contribute to the maintenance of general state charges. 2.The economic system – prosecutor Canary Islands does not require the value added tax or excise taxes except beer, on intermediate products and beverages on alcohol derivatives. The power of taxation in the CCAA of common system based on its own taxes and taxes transferred . The taxes raised in place and implemented by each Autonomous Community as a manifestation of its power of taxation. The taxes assigned are those established and regulated by the state but whose product recovery of the tax in whole or in part corresponds to the CCAA. can be transferred to the CCAA (Wealth Tax) transferred effectively to the CCAA (income tax, wealth tax, inheritance tax and gift taxes on the game.) property.The Legal Corporations tax. The city councils shall, Property tax (IBI), Trade tax, tax on motor vehicles, may also require the Tax on Construction, Installation and Works and the Tax on the Increase in Value of Urban Land.
Item 7. Revenue: the income that the administration gets public administration acting as such, with a range of powers and prerogatives. The major source of tax revenue of modern states, whose object is the obligation of a financial benefit to for a public body to meet the needs of this that the law gives rise directly from performance of certain facts that it provides. Features tributes are required by the State or other public entity, are coercive to meet public needs and public spending must be established by law. Classes of taxes: taxes, special contributions and taxes. Taxes: These are taxes levied without consideration for which a taxable event comprises business, acts or facts that show the economic capacity of taxpayer. Classification of taxes: 1 – Classification of taxes by the subject: Income taxes (levied on different manifestations of the income from physical, legal resident or not), taxes on wealth (property ownership tax, rights and capital transfers) and consumption tax (Gravel different types of consumption). 2-Classification of direct and indirect taxes, 3-Taxes personal and real, 4-Taxes subjective and objective: Subjective (personal circumstances of the taxpayer are taken into account) 5-Taxes and instant and regular 6-classification that is within the law of the State Budget. The following are thus distinguished Direct taxes, Indirect taxes and excise duties (alcohol) Excise duty on insurance premiums, transportation excise tax, special oil retail sales. The t loops are the taxes which the chargeable event is the private use or special use in the public domain, the provision of services or activities under public law relating affect or benefit a particular way to the taxpayer when the services or activities are not soliciting or receiving voluntary for forced or not pay tax or engage the private sector.Distinction between rate, tax and special levies 1) rate – Tax the way in which the taxable event takes place: the tax is made only by the taxpayer. The rate, however, taxpayers and administration involved and the consideration. In no tax benefit. At the rate it for the person making the payment. 2) Rate – Special Contribution Special Contribution Administration makes while in that fee. And in the EC the benefit you get is not an individual is collective.. Classification rates depending on the subject 1.Within active: State Rates, Fees of the Autonomous Communities, the Local Government rates. 2.For goal based on your budget: Fees for private use the public domain, Fees for public services and Fees for activities of the Administration Unit 8. The tax liability.

1.Concepto.

The legal relationship – tax is defined in Article 17.1 of the LGT as the set of obligations and duties, rights and powers arising from the implementation of taxes.

Article 17.2 of the LGT provides that the tax law relationship can be derived material and formal obligations to the taxpayer and the administration, and tax penalties for failure to comply.

This relationship is one requirement that is defined in Article 19 of the LGT as that is to pay the tax.

For Ferreiro tax liability is meant by the statutory obligation to deliver a public entity, by way of tax a sum of money.

2.Nacimiento in tax liability.

The problem concerning the origin of the tax liability arises around the time when that obligation arises, or the realization of taxable transactions or in the event of liquidation. In the 1st case, the effects of this act are declared for tax liability, while in the 2nd are constitutive.

Article 1089 Civil Code determines that obligations arise from law, contracts or quasi contracts and wrongful acts and omissions involving any kind of fault or negligence. All obligations created by or of the will of the parties or the law brings to the birth of the obligation to carry out a specific legal fact.

Article 20 of the LGT provides that:

a.the chargeable event is the budget set by the law to set each tax and whose conduct caused the birth of the principal tax liability.

b.La law may complete the delimitation of the taxable event by reference to cases of non-taxable.

Article 21.1 of the LGT determined that the accrual is the time that means made the event and which produces the birth of the principal tax liability.

Article 20.1 of the LGT said that the taxable event causes the birth of the principal tax liability in any way indicating that the completion of the taxable event is the starting point in creating the link.

3.The taxable event

A. Concept

In our LGT the taxable event has two main functions:
1)) is the generating element of the tax liability.
2)) allows to objectively classify the taxes that make up the system, article 20.1 …

The taxable event is the budget set by the law to set each tax and whose conduct caused the birth of the principal tax liability.

B. Constituent elements of the taxable event

The constituent elements of the taxable event, the doctrine differs fundamentally 2:

1 Element target: the budget in fact equivalent to the base situation, the fact has been taken into account by the legislature for the establishment of the tax.

Such items can be viewed from several aspects (material, spatial, temporal, quantitative) each of which can in turn link to others in very different ways resulting in the emergence of a varied range of budget targets.

2 Element subjective is a particular fact or legal relationship, which must be found liable for the tax with the material element.

Article 11 of the LGT provides: The taxes will be charged according to the criteria of residence and territoriality as specified by law in each case. Failing that personal taxes are required under the criterion of residence and other taxes under the criterion of territoriality which is best suited to the nature of the charged object.

4.La tax exemption.

A. Concept and Features

Article 22 of the LGT provides that exemption are those assumptions that, despite the fact be taxable, the law exempts from compliance with the principal tax liability.

There is tax exemption when a rule provides that a tax provision is not applicable to factual circumstances that make the assumption that tax legislation, or when it prevents the legal consequences arising from the mandate of this tax rule for subjects in the rule set exemption.

Sainz de Bujanda defines tax exemption as a technique that can affect all the structural elements of the tax ratio and is directed to cause a total or partial desgravatorio effect for the benefit of others or on certain factual assumptions.

Sainz de Bujanda, subjective exemptions in the event occurs that causes the birth of the tax liability but this does not come for free subject to the exemptions, however objective, can integrate the free course the logical operation that leads to the formulation of legislation taxable event, to set it so that some of his statements do not generate tax liability.

In summary we can say that the characteristic features of the exemptions are:

3SU exceptional: the exemptions are to modify the scope of objective or subjective standards of restraint, the same eliminating certain assumptions or persons can not be established tax exemptions rather than by the logic game of two standards, one that taxed certain assumptions and people, and another that would exempt the same to some of these.

The Article 22 tax exemption are those assumptions that, despite the fact be taxable, the law exempts from compliance with the principal tax liability.

B. Classes:

1.Exenciones objective and subjective.

The concept of exemption objective is inextricably linked to the budget made the tax liability.

However, exemptions are made in the subjective sphere of the persons liable for payment. What they aim at, is that certain persons or categories of persons are not obliged to contribute.

2.Exenciones temporary and permanent.

They rely on limits in the design of them. Will temporary exemptions, those that produce the exclusionary effect of the tax obligation only during the limited period, by contrast, are those permanent exemptions are not limited in time.

3.Exenciones totally or partially.

Total exemptions are those that block the growth of the tax liability for some certain facts or for certain subjects, partial derogations, which do not prevent the birth of the obligation, but reduce the amount of the debt, either because the object taxed. These are also called partial exemptions under the doctrine increases or reductions to indicate precisely the debt minorization they produce.

C. Exemption and non-taxable.

Article 20.2 of the LGT law may complete the delimitation of the taxable event by reference to cases of non-taxable.

The subject is not that the tax rule does not apply because the alleged activity of the taxpayer does not make the assumption that standard, or because the doer can not suffer the legal consequences arising from the mandate of the tax rule for failing to meet the hypothesis on the relationship required by the tax rule. That is, simply because the activity the taxpayer is not taxable.

Item 9. Creditor active subject of financial benefit that is specific tax liability and taxable as a debtor of a tax liability is identified primarily as required to satisfy the tax debt or benefit to the creditor. Ustituto The s is the taxpayer who, by law enforcement and instead of the taxpayer is required to meet the tax liability principal and formal obligations inherent in it, its characteristics are its legal position is that of taxpayer, the replacement occurs in connection with the taxpayer and the legal position of the substitute derived from an obligation ex lege. The subsidiary or jointly liable for the tax debt has to be fixed by law and which is taxable by the debtor. 5.The home tax

a.Domicilio of individuals

Article 48.2.a) of the GTL follows with some fidelity criterion of Article 40 of CC. The domicile of natural persons is the place of habitual residence. However, the above article states a special rule for individuals who primarily develop economic activities, in which case the tax authority may be treated as resident for tax purposes where it is effectively centralized administrative management and direction of the activities.

If that site can not be established, one whose stand the increased value of assets in which economic activities are carried out.

But what is meant by usual residence? 40/1.998 Law of 9 December, the income tax of natural persons (PIT) and other tax rules in Article 9.1, gives the former to have.

Means that the taxpayer has his habitual residence in Spanish territory when any of the following circumstances:

a.. That it remains more than 183 days during the calendar year in Spanish territory.
b.. That Spain is situated in the core or base of its operations or financial interest, directly or indirectly.

b.Domicilio of legal persons

Article 4.2.b) of the LGT provides that the domicile of legal persons will be to their head office, provided that it is effectively centralized administrative management and direction of their businesses. Otherwise, it will address the place that will carry out such management or direction. When you can not determine the place of tax residence in accordance with the above criteria will prevail one whose largest of fixed assets.

6.La representation in the taxation system

A. Concept

It is, as in other areas of law, an instrument that allows an individual to act on behalf of another, because they agree voluntarily or by mandate of law, especially in the event that one of the subject lacks capacity to act.

The doctrine generally distinguishes two kinds of representation: the statutory and voluntary.

a.Para SANTORO, legal representation is one in which the substitution of a subject for another in legal activity intended to produce effects for the former, but such substitution appears based on a power of acting derivative represented so that the substitute has to work on the basis of a power itself, which comes from the law, and the acting, as agent, with full independence of the will of him whom it represents.

b.La voluntary or self-representation is one that has its origin in the person’s own self, ie the person to whom it represents.

B. Assumptions of representation

Legal a.Representación

Article 45 of the LGT provides that persons who lack capacity to sue their legal representatives act.

voluntary b.Representación

Article 46 provides in paragraph one, the taxpayer entitled to act may act through representatives.

7.La solidarity in Tax Law

It may happen that two or more persons who are taxable to the fact the relationship established by law for the tax liability arises.

This raises the question of whether such persons are jointly and severally liable against the public body.

This is precisely what happens in Spain, since Article 35.6 of the LGT provides that the concurrence of several taxpayers in the same budget of an obligation to remain jointly liable for the tax authorities against the fulfillment of allbenefits unless the law expressly provided otherwise.

Determination of the obligations extending solidarity.

Under the tax law is necessary to decide whether material solidarity refers only to the payment of the fee or also extends to the other obligations that normally accompany the former.

a.. Solidarity refers only to the tax in the strict sense or also extends to other financial obligations that sometimes accompany the former.

It seems that the correct solution is the second alternative. Indeed, Article 58 of the Act itself states: 1. The tax debt consists of the fee or amount to be recovered resulting from the primary tax liability or obligations to make payments on account.

b.Si solidarity refers to the so-called formal obligations.

According to the wording of Article 35.6 of the LGT, it appears that solidarity extends to compliance with the formal obligations inherent in the tribute.

8.La impact of the tax

According SAINZ DE BUJANDA when the standard tax law gives powers to the person liable for tax of another person, which is not part of the circle on the legal obligation tax, refund of tax paid to the public entity a creditor.

When that happens, we have the legal translation of the quota.

The notes that define the legal translation of the fee are:

1.La effect operates as a result of performing a duty imposed by law on the taxpayer.

2.La provision is identical to that earned by the taxpayer in relation to the Treasury.

3.The tax rules governing the legal status of this relationship.

9.La succession tax liability

When a debtor in exchange for the tax liability before the call we transfer the tax liability and hence it follows that the transfer of debt always requires the prior existence of it.

a.Sucesores of legal persons

Article 39.1. LGT provides that the death of the taxpayer, the outstanding tax obligations will be transmitted to heirs, without prejudice to the civil law lays down the acquisition of inheritance:

Under no circumstances, be transmitted sanctions.

b.Sucesores persons and entities without legal personality

Article 40.1. LGT provides that the outstanding tax obligations of corporations and legal entities dissolved and liquidated in the law that mimics the liability of the partners, venturers or joint holders shall be forwarded to them, which will be jointly and severally liable up to the value liquidation quota set aside for them.

The outstanding tax obligations of corporations and legal entities dissolved and liquidated in which the law does not limit the liability of the partners, venturers or joint holders shall be forwarded in full to these, which will be jointly and severally liable for compliance.