tax agency

Investigation reveals offshore deals of billionaires, public officials, celebrities and world leaders

The Catalan Tax Agency assumed new responsibilities on Friday and opened 27 new offices on Monday

With 28 tax offices to open around the country on September 4, Catalonia takes step towards self-sufficiency

The Commission for Economic Affairs adopts the draft law that could set the basis for a Catalan fiscal system separate from Spain's

The Catalan Government’s tax take rose by 8.3% in 2016, totalling 2.9 billion euros. More than half of this came from the real estate sector, which contributed 1.6 billion euros to the treasury due to the growth registered in both the execution of new mortgages and in the buying and selling of previously owned houses. The wealth tax also contributed to this 225.45 million euros, an increase compared to 2015, not only because the fee grew but also because there were more declarants in 2016 than in the previous years. The figures, which include the Catalan Tax Agency’s own taxes and those transferred by the Spanish state, include the new taxes applied in 2016 for the first time. In particular, the treasury benefited from the taxes applied to empty houses, which represented 11.49 million euros and the 2.99 million obtained by charging Co2 emissions produced by public aviation.  

Governing cross-party list ‘Junts Pel Sí’ and radical left CUP, the two pro-independence forces in the Parliament, put in place this Friday the basis for the future Catalan Tax Agency. It will be constituted by three bodies: the Catalan Tax Agency, the Board of Taxes and the Fiscal Council. The latter is one of the main novelties of the document registered by the pro-independence groups. The Fiscal Council, a body which doesn’t exist within the Spanish framework, will include representatives from both the public and private sector and will be responsible for advising the Government. The proposal will have to be put to vote after this summer as one of the three ‘laws of disconnection’ from Spain that both groups plan to approve, according to the pro-independence roadmap.

The Spanish Constitutional Court (TC) has unanimously suspended some precepts of the law on fiscal measures which foresees the development of so-called state structures in Catalonia. In particular, the magistrates have considered unconstitutional the plan for the creation of the Catalan Tax Agency, the catalogue of strategic infrastructures and the plans for the energy and railway sectors, amongst others. The suspension, which has now been confirmed, affects the same articles which were temporarily annulled in June 2015 when the Spanish Government asked for legal action against Catalonia’s plans for the creation of state structures. Later, in November 2015, the TC accepted the appeal presented by the Spanish executive to stop the reform of Catalonia’s Tax Agency.

The Catalan Government’s budget for 2016 has been drafted and €700 million more is to be allocated to social spending compared to the budget of 2015, according to the Catalan Vice President and Minister for Economy Oriol Junqueras. He also stated that the Health sector will see an increase of €317 million, while the Education budget will increase by €211 million and that of Social Services will grow by €173 million. An additional 50 million more euros are to be allocated to the sectors of Universities and Research, stated the Catalan Vice President. The budget will be increased for the first time in many years, with the goal of being “realistic” and avoid “generating expectations that cannot be satisfied”. The budget will be delivered this Tuesday to Parliament’s President Carme Forcadell and opened for discussion amongst the groups in the Catalan Chamber.

The Catalan vice president and Catalan Minister for Economy and Tax Office, Oriol Junqueras, stated that the Government “won’t make any cuts”and emphasised that Catalonia already allocates 70% of its budget to social policies and that 90% of the Government’s expenses are final. Junqueras’ statements come after the Spanish Finance Minister, Cristóbal Montoro, sent a letter to several Autonomous Communities in Spain urging them to “comply with the budget stability”. Montoro also nuanced that Catalonia’s deficit target in 2015, which was 2.7%, surpassed the maximum deficit established by the Spanish government by 0.7%. “If the Spanish Ministry wants to make cuts or shut down hospitals, it will have to come and do it itself”, warned Junqueras. He also emphasised that “the Spanish Finance Ministry has imposed so many cuts in the last years that any additional ones are simply inapplicable”.

The Spanish Constitutional Court (TC) announced this Wednesday the acceptance of the appeal made by the Spanish government to stop the reform of Catalonia’s Tax Agency. The TC declared “invalid and unconstitutional” article 4 of Law 9/2015, which stipulated that all those civil servants who want to be eligible for a position in the body would need to have permanent positions in Catalonia. According to the law reform, those “officials who are assigned duties substantially matching those of the body and who already hold permanent positions within Catalonia’s borders”would be eligible to voluntarily join the Catalan Tax Agency through specific selection processes. The Spanish government’s appeal claimed that the proposal was against “the right of all Spanish citizens to access the entity under the same conditions”.

Catalan government spokeswoman, Neus Munté, stated that the suspension will be appealed and described the decision as “another example of asphyxia and re-centralisation”. The Catalan reform stipulated that all those civil servants who wanted to apply for a position in the entity, would need to have permanent positions in Catalonia. The Constitutional Court (TC) considered the new law to have violated the right of all Spanish citizens to access the entity under the same conditions. 

The President of the Catalan Government, Artur Mas, presented on Monday the model for Catalonia's own Treasury, which will be developed should "the political conditions" be there, he stated. "This is the most serious attempt to build our own Treasury in the last 300 years", stressed Mas. "After two years of work, we are ready" to launch and Catalans should not waste "this great opportunity", he stressed. "Without our own Treasury, there is no real self-government", the Catalan President stated. The system would include Catalonia's own Tax Agency and  is inspired by the taxation authorities in countries such as Sweden, Denmark and Australia, which prioritise cooperation with taxpayers over controlling them. In these models, efforts are concentrated on severely persecuting tax evaders and underground economy, while the vast majority of tax-payers who deal correctly with their fiscal obligations receive assistance and have unlimited access to their fiscal data.

The judge at Madrid’s 'Audiencia Nacional', which is a court investigating and ruling on organised crime, terrorism and international fiscal offenses, announced on Wednesday the launching of an ‘oral trial’ against FC Barcelona itself, its current President, Josep Maria Bartomeu, and his predecessor and friend, Sandro Rosell, over Neymar Jr's signing. In the end, neither Rosell's resignation in January 2014, nor the payment of a complementary tax declarations have prevented a judge from requesting the opening of a trial against the Catalan club and its former and current presidents. However, it is not clear whether the trial will take place in the end, since there are some doubts about the court jurisdiction. The Audiencia National judge is accusing all of themof alleged corporate and tax offenses in the Brazilian player’s signing. The judge believes that the total amount of the transfer was €83.3 million and not the €57.1 million stated by Rosell in 2013. In addition, the judge believe Rosell hid the real figure from the club's balance sheets.