Tuesday, June 13, 2017
The Constitutional Court of Spain has annulled the so-called "tax amnesty" as a result of the appeal of unconstitutionality which was lodged following its approval. The grounds for the annulment rested on the Constitution's express prohibition against using a Royal Decree-law when the measures approved affect "to a relevant degree or substantially" the rights enshrined in Title I, such as in the case of the «constitutional duty of all citizens to contribute towards the funding of public expenditure.
This decision by the Constitutional Court, apart from other interpretations, has generated great uncertainty among taxpayers who have amassed assets and income abroad, as the period for regularization has prescribed. The situation is different for taxpayers for whom, for different reasons, the tax period has not prescribed, as the Tax Agency is in possession of information which it is obliged in principle to act on, but which could lead to proceedings which are null and void due to the source of the information. This annulment will not prevent repercussions if this information is inspected or reviewed.
The Ministry of Finance or the Tax Agency is expected to make an announcement regarding this important issue shortly.
