tax

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.

The political parties and the main civil society organisations that support Catalonia's independence from Spain have agreed that the Catalan Parliament will issue a formal declaration to start building a new state and launch a constituent process, which would be put to a citizen vote at a later stage, if they obtain a parliamentary majority in the September elections. They have been holding a series of talks over the past few weeks in order to agree on a road map that sets out the steps to follow in case pro-independence parties obtain an absolute majority in the next Catalan Parliament elections. These elections have been called early and are being presented as a 'de facto' referendum on independence by the parties supporting this option, since they are the only way to hold a legal vote on this issue after years of the Spanish Government's unilateral blocking attitude.

Isona Passola, the producer of the internationally-acclaimed Catalan film ‘Pa Negre’ (Black Bread), the Spanish contender for an Oscar in 2013, believes that “Catalan culture can be appreciated worldwide”. Passola has made many historical documentaries and is now convinced that “life acquires meaning when working for collective benefit”. Last year she presented ‘L’Endemà’, a documentary aimed at countering the arguments against Catalan independence and financed through crowd-funding. Passola, the current president of the Catalan Film Academy, is “a true defender of the right to form a family” and “has never lost the joie de vivre”.

The Catalan Government’s Budget for 2015 includes some “unconstitutional” measures, according to the Council for Constitutional Guarantees (CGE), which is an advisory body issuing non-binding reports. The CGE has criticised a number of bill amendments developing some state structures, but not all of them. The body has highlighted the way the budget bill is to develop Catalonia’s own tax administration and its own competition authority, finding it to be at odds with the Spanish Constitution. However, the CGE does consider the way in which Catalonia’s own Social Security system would be developed (by launching the Agency of Social Protection) to respect the Constitution. The governing centre-right pro-Catalan State coalition CiU and the opposition left-wing Catalan independence party ERC have said they will modify the measures criticised and will develop the affected state structures in a similar way to the Social Security system.

A day after the President of the Catalan Government and leader of the centre-right pro-Catalan State coalition CiU, Artur Mas, announced his plan to further develop the so-called state structures before the 27 September elections, the leader of the left-wing Catalan independence party ERC, Oriol Junqueras, has once again requested to be part of the Executive and sit in Cabinet. Junqueras justified his request in order “to guarantee the indispensable state structures”, such as Catalonia’s own tax administration and Social Security system. The embryonic frame of such structures should be created before the next Catalan elections, which will be called early and will be transformed into a ‘de facto’ referendum on independence from Spain. On Tuesday, Mas had already ruled out the possibility of the ERC sitting in Government and, on Wednesday, the Catalan President stressed that the current Cabinet will only be in office for the next 6 months.

Spain’s National Court, a Madrid-based high court in charge of investigating and ruling on transnational felonies, announced on Tuesday the indictment of FC Barcelona – as a legal person – and its President, Josep Maria Bartomeu, for alleged fiscal fraud regarding Neymar Jr’s transfer and signing for the Catalan club. The judge considers there to be enough evidence to suggest that the Catalan club and Bartomeu could have committed fiscal felony in the tax declarations for the signing of the Brazilian star. Bartomeu will have to testify with his lawyers before the Madrid-based judge on 13 February. FC Barcelona issued a press statement in which it expresses its “surprise, indignation and disagreement”. Furthermore the Catalan club announced that it shall act determinedly to defend its interests and honour.

The conservative Spanish nationalist People’s Party (PP), which runs the Spanish Government, has appealed against the Catalan Executive’s 2015 budget bill, which will delay its definitive approval and implementation by up to one month. The new budget was supposed to be approved this week by the Catalan Parliament, after months of negotiations between the governing centre-right pro-Catalan State coalition CiU and the left-wing Catalan independence party ERC. The new bill will increase social spending and also increase funds for Catalonia’s own tax administration and for the launch of a Catalan Social Security agency. The Catalan Government accused the PP of “parliamentary filibusterism” and warned them that the appeal “will not stop the [self-determination] process” nor the creation of “state structures”. However, it will damage families in need, as it will delay the implementation of new social programmes.

The governing centre-right pro-Catalan State coalition CiU and the left-wing Catalan independence party ERC have reached an agreement to approve the Catalan Government’s budget for the current year. After the President of the Catalan Government and CiU leader, Artur Mas, and the ERC’s President, Oriol Junqueras, reached an agreement on holding early elections on 27 September as a plebiscite on Catalonia’s independence, both parties reopened the budget talks. After 10 days of negotiations, they have reached a definitive agreement, which includes a €100 million fund that will bring more resources for social programmes. They have also agreed to stop paying some allowances to senior officials. Furthermore, they will add €10 million to the development of Catalonia’s own tax administration and they will also create the Agency of Social Protection, which is to manage Catalonia’s Social Security system.

The Constitutional Court has accepted to debate the Spanish Government's last appeal against the Catalan Executive's tax on bank deposits, which has to be paid by financial entities. Such a decision represents the automatic cancellation of the tax for an initial period of 5 months. Catalonia approved such a measure in December 2012 and two weeks later, the Spanish Government approved its own tax with a 0% rate, so it was 'de facto' cancelling the regional taxes. However, instead of compensating Catalonia for having cancelled the tax – as it is legally obliged to do – the Spanish Government refused to do so, since it argued that the tax had not entered into force yet and took the issue to the Constitutional Court. The Court initially accepted the Spanish Executive's appeal and the tax was temporarily suspended, but in May 2013 it was lifted. In July 2014, the Spanish Government modified the tax with a 0.03% rate and in December it presented a new appeal against the Catalan tax, which brought in some €680 million in 2014.

Following the agreement reached last week between the President of the Catalan Government and leader of the governing centre-right pro-Catalan State coalition CiU, Artur Mas, and the President of the left-wing pro-independence party ERC, Oriol Junqueras, on calling early elections in September as a plebiscite on Catalonia’s independence from Spain, the Catalan Executive’s budget for 2015 is now closer to definitive approval. On Monday, the ERC MPs started to withdraw their full amendments to the different sections of the Catalan Government’s budget. Now, the ERC is asking the CiU and the Government to debate their specific amendments on precise programmes in order to have “a fairer budget” which is less regional and more that of a country in its “national transition”, they said.

The Spanish Deputy Prime Minister, Soraya Sáenz de Santamaría, strongly criticised the calling of early elections in Catalonia, announced by the President of the Catalan Government, Artur Mas, for 27 September as a ‘de facto’ plebiscite on independence. Sáenz de Santamaría stated that such a call shows Mas’ “failure” and his “incapacity” to run a government. She also said that the Catalan President is announcing elections 8 months in advance “to hide his ineffectiveness”. Besides this, the Spanish Deputy PM warned Catalan authorities that any measures adopted in the coming months that exceed Catalonia’s self-rule powers will be taken to the Constitutional Court. 

The European Commission has warned Spain that 6 Autonomous Communities, including Catalonia, should cancel their tax on large-sized shopping centres because it may represent indirect State aid benefiting smaller shops and therefore damaging free competition. The Catalan Minister for Business and Employment, Felip Puig, announced legal actions to defend this tax, which was validated by the Constitutional Court. Catalonia’s shopping model has a great presence of small and local shops, mostly run by families with a small number of employees. In order to protect this model and make it compatible with new shopping malls and large-sized international shops, in 2000 the Catalan Parliament created a tax on shops larger than 2,500 square metres. Currently, it is set at €17 per year per square metre. The revenue collected is devoted to actions promoting local retail.

The world famous opera singer Montserrat Caballé reached on Tuesday a prejudicial agreement to avoid trial for tax fraud committed in 2010. The Catalan soprano, aged 81, admitted that her fiscal residence was not set in the fiscal haven of Andorra that year and therefore had evaded paying taxes to the Spanish authorities. Caballé, who is considered one of the greatest sopranos ever by both critics and fans alike, accepted the Public Prosecution’s petition of a 6-month jail sentence and a €240,000 fine, which corresponds to almost half of the evaded money. Since the jail sentence is shorter than 2 years and Caballé has no criminal record, she will not have to be imprisoned. The fine is to be added to the €508,000 she already deposited in the spring to compensate the Spanish Tax Agency. On top of this, she will still have to pay €75,000, corresponding to the interest on the money evaded.

The President of the Left-Wing Catalan Independence Party ERC, Oriol Junqueras, has explained his own road map to allow citizens to vote on independence from Spain and build a new state. Junqueras proposed running in immediate early elections through different pro-independence lists with shared elements and opened to independents, in order to respect diversity. The ERC leader differed from the proposal of running through a single electoral list made by the President of the Catalan Government and leader of the centre-right pro-Catalan State coalition CiU, Artur Mas. Junqueras insisted on the need to answer to the social and economic concerns of many citizens in addition to those about independence. Should they altogether obtain a majority, the different pro-independence candidatures should form a national unity government and start building the new state from day one. He particularly emphasised the need to include those who did not voted for independence in the constituent process, which should be finally ratified in a referendum.