Taxation and Financial Autonomy: A Guide to the Spanish System
Taxation and Financial Autonomy:
Article 31:
- All individuals contribute equitably to the provision of public expenditure in the state according to an economic system consistent with its economic capabilities.
- Public expenditures are distributed fairly and efficiently in accordance to the legislative criteria.
- May only be imposed in personal or public property in accordance with law.
LGT is not included in the tax fraud, but calls it”conflict in the implementation of the tax rule. Art15.1 means that a conflict exists in the application of the rule in 2 cases: 1 – considered individually or collectively are known to be artificial or inappropriate for achieving the result, 2 – that its use does not constitute legal effects or other relevant economies of the tax savings and the effects that have been obtained with the acts themselves. Implications: Adapting law to its having violated the rule by eliminating the tax advantages obtained and cleared default interest … The law does not provide tax offense. Examples: Economy of option contracts simulated.
Analogy: Occurs when there is no law to be covered to the solution of a particular case. Def.: Method consisting in obtaining the principles contained in the rule which provides for a certain course to apply to other non-regulated in this rule, but keeping with that a similarity relation.
Art 4: 1. The analogy is when there is no law, to be covered by a law which has reason identity. / / 2. The criminal law, exceptional and temporary level will not apply in circumstances or in times other than those expressly included therein. / / 3. the provisions of this code is implemented as extra x on matters governed by law. Art 14: The analogy does not apply to extend beyond its strict terms the taxable event, the other benefits tax exemptions or incentives.
Taxing power of the different regions
Art 137: The State is organized into municipalities, provinces and autonomous regions which granted autonomy to manage their respective interests.
156: Autonomous Communities shall enjoy financial autonomy for the development of their powers under the principles of coordination of the State Treasury and solidarity among all Spanish. 157: defines the financial power of the CCAA
Lists the resources that can provide: Coordination, Solidarity, territorial Free Flow
The resources of the Autonomous Communities shall consist of: 1. Tax wholly or partly by the state, 2. Their own taxes, fees and special taxes, 3. Transfers of territorial compensation fund; 4. Benefits arising from private law 5. flows generated from credit operations
157.2: the Autonomous Communities may under no circumstances introduce measures to raise taxes on property located outside its territory. 157.3: Act be regulated by the financial powers between state and regions.
LOFCA 1.2: Organic Law on the financing of the autonomous communities. Additional provisions: Basque country, Navarra, Canary Islands, Ceuta and Melilla.
Additional Provision 1 CE: The constitution protects and respects the historical rights of the provincial territory.
Economic Agreement: 1 – Regulates Tax relations between the state and pv, 2 – Quota: pv amount the state must pay the powers not transferred, 3 – policy and management capacity of a state itself; 4 – Legal nature of the economic agreement
RESPONSIBILITIES: Direct taxation (income or capital) Indirect taxation (consumption)