28 dic 2016
Corporate Tax

Employers believe that continued adoption of emergency measures in tax issues is incompatible with legal certainty

The continued adoption of emergency measures in tax matters is incompatible with the minimum legal certainty required in all economic activities, most especially with the conditions required by domestic or foreign investors.  This is one of the conclusions included in a report made public by CEOE today, after consulting several experts in the matter and following the approval of Royal Decree Law 3/2016, which contains important changes in Corporate Tax Regulation and that could, in fact, constitute grounds for unconstitutionality.

Corporate Tax

According to the aforementioned report, the retroactivity, at least in economic terms, of the tax amendments implemented is not admissible and is, in fact, a very damaging legislative technique that should surely be improved, and it leaves Spain’s image in a very poor light. In addition, the use of a Royal Decree or Royal Decree-Law should be the exception and not the rule when drafting tax regulation.

In this sense, they point out that these measures should generally be announced well in advance and be discussed with those affected, allowing the necessary time to receive feedback and enabling parliamentary groups to propose amendments.

According to the report previously mentioned, it is not admissible to have to continuously deal with tax reforms. The RDL is amending rules passed at the end of 2013. And, in the meantime, there has been a fiscal reform process that led to a new Tax Law applicable in 2015 and that, even though it was supposed to confer stability to the tax in the medium term, is already being amended. “"Something is wrong when we continually modify what has already been modified," CEOE points out.