The event organised by Pérez-Llorca, which is in its fourth year, featured speakers José Suárez, partner of Pérez-Llorca’s Tax practice area, Diego Marín‑Barnuevo, professor of finance and tax law at the Universidad Autónoma de Madrid and of counsel at Pérez-Llorca, and Jesús Cudero, Senior Judge on leave of absence from the Spanish Supreme Court and of counsel at Pérez-Llorca, who together provided a forum for analysis of the latest decisions on municipal taxation.
José Suárez began the session by analysing a selection of the rulings on the Spanish Property Tax (IBI) and the Business Activity Tax (IAE) which affect a wide number of sectors of economic activity, and highlighting some instances of irregularities in street indexes and the problems and inequalities that may be caused by the failure to keep the IAE’s headings up to date.
Next, Jesús Cudero explained the latest developments on other taxes and fees. Among other issues, he noted different cases where tax ordinances were cancelled due to their contradiction of the principle of good regulation and insufficient reasoning in the choice of taxable events for the tax for occupying public spaces. A controversial ruling on the fee for the maintenance of the fire prevention and extinguishing service that some local councils demand from insurance companies was also analysed.
Diego Marín-Barnuevo went on to examine the main developments related to the Tax on Constructions, Installations and Works (ICIO), including the adaptation of the use of different methods to quantify provisional and definitive settlements, the cases in which the tax is refunded in the event of works not being carried out and the limitation period for applying for a refund.
Municipal capital gains tax (plusvalía municipal): keys to understanding the new reform
The second part of the session, naturally, given the novelty of Constitutional Court judgment 182/2021 (Judgment 182/2021), focused on the regulatory and case law evolution of the Tax on the Increase in Value of Urban Land (known as the “plusvalia municipal”) and the possibility of challenging tax returns and self-assessments for this tax following the enactment of Judgment 182/2021. Discussion of this subject was wrapped up with a detailed review of the new system for quantifying the tax base introduced by Royal Decree-law 26/2021 of 8 November.
The speakers also shared some general reflections on the effect that different statements contained in the Constitutional Court’s judgment could have in relation to other taxes and situations.
Finally, with a practical yet rigorous approach, the speakers resolved the questions raised by the attendees on the different matters analysed in the session, and were particularly exhaustive in identifying the legal resolution that should be given to the different issues that could arise for taxpayers, as well as the future prospects for taxpayers carrying out real estate transactions after 9 November 2021.