The constitution will address Andalusia’s appeal against the tax on great wealth, but will not paralyze its collection

He constitutional Court will have the final say on the legality of the temporary solidarity tax on large fortunes, a levy created last year by the Government to harmonize the wealth tax in practice and cancel the bonuses applied in communities such as Madrid, Andalusia, Galicia or Murcia, which allow the richest taxpayers not to pay this tax or to reduce their tax bill (50% in the case of Galicia).

The plenary session of the Court of Guarantee this Tuesday was allowed to process the appeal of unconstitutionality promoted by the Junta de Andalucía against Article 3 of Law 38/2022 of December 27, a norm which, in addition to establishing a tax on great wealth, also regulated temporary taxes on extraordinary profits energy companies and financial institutions. Despite agreeing to review the rule, in order to check whether it complies with the Magna Carta, the Constitutional Court, “applying its doctrine”, rejected the request for preventive suspension of the contested rule. In other words, if the higher court does not make an express decision first (or if the appeal is finally dismissed), the affected taxpayers will have to file and pay taxes next Julyfor the assets they had in 2022.

In its appeal, the Junta de Andalucía claims that the law governing the tax is in violation financial autonomy of autonomous communities and the blocking of constitutionality in matters of ceded taxes, and the violation of the right to political representation, the principles of constitutional and institutional loyalty and the principles of legal certainty.

The Supreme Court confirmed the retroactivity

The reception of the appeal for action by the Constitutional Court occurs a few days after Supreme Court they indirectly support another of the most controversial points of this tax (both banks and energy companies): its collection in the same year in which it was approved. And the fact is that the three figures came into force only two days before the end of the year, but since the calculation date is set for December 31, all affected taxpayers will have to pay a fee corresponding to the entire year. However, the Supreme Court, after analyzing a similar case in the Canary Islands tax, ruled that when the calculation date is after the entry into force of the regulatory norm (as happens in the tax on large wealth) there is no retroactivity in the application, so that the collection of the lien is in accordance with the law.

In addition to Andalusia, other regional governments, such as Madrid and Galicia, have announced in recent weeks that they will also file unconstitutionality appeals against the tax on large estates.