Poder financiero y sistemas tributarios (II) Flashcards
Las competencias locales
Constitution recognises autonomy of municipios and provinces to manage their own interests.
However, differently to state and CCAA, Corporaciones Locales don’t have a list of competencies established by the constitution.
Rather, notion of local autonomy based on “participación competencial” of local entities in things that effect their interests.
Management of their interests developed by Art 25 LBRL (Ley de Bases del Regimen Local) which determines that in all cases municipios will have the following competencies:
- urbanismo
- medio ambiente urbano
- agua potable
- infraestructura viaria
- atención a personas en riesgo de exclusión social
- policía local
- tráfico
- promoción del turismo.
Determined by a law, which must evaluate local services with regard to principles of descentralización, eficiencia, estabilidad and sostenibilidad financiera.
The law must be accompanied by a memoria económica that reflects the impact on financial resources of the effected administracion publica and the compliance with the principles of estabilidad, sostenibilidad financiera and eficiencia del servicio o la actividad.
Must demonstrate that they are going to have the necessary recourses, and spending must not go over income.
Art 26 LBRL establishes the services that must be provided by the municipios:
- alumbrado público
- cementerio
- recogida de residuos
- limpieza viaria
- abastecimiento domiciliario de agua potable, alcantarillado
- acceso a los núcleos de población
- pavimentación de las vías públicas.
In municipios with over 5000 inhabitants, there also must be:
- parque público
- biblioteca pública
- tratamiento de residuos.
In municipios with over 20,000 inhabitants thee also must be:
- protección civil
- evaluación e información de situaciones de necesidad social y la atención inmediata a personas en situación o riesgo de exclusión social
- prevención y extinción de incendios e instalaciones deportivas de uso público.
In municipios with over 50,000 inhabitants there also must be:
- transporte colectivo urbano de viajeros
- medio ambiente urbano.
Los recursos de la Hacienda local
Art 142 doesn’t establish a marco concreto of resources, but it establishes a principio de suficiencia, in the sense that the CE guarantees that corporaciones locales will have sufficient means to fulfil their functions.
This will come, mainly, from its own taxes and those of the state and the CCAA.
Two limits on the principio de suficiencia de la Hacienda Local:
a) El art. 6.3. LOFCA. CCAA must compensate corporaciones locales when they tax things reserved for the cooperaciones locales.
b) Art 9.3 TRLRHL. State must compensate corporaciones locales when they establish beneficios fiscales en tributos locales.
Constitution does not guarantee financial autonomy of haciendas locales.
Yet, TC, interpreting Arts 137 and 142 CE, has admitted that the local autonomy in Art 137 CE also has an economic aspect. The existence of sufficient resources is a premise of local autonomy. Given lots of lots of municipios don’t have enough funds, they have to rely on contributions from the state and the CCAA.
TRLHL Art 2.1 - recursos de haciendas locales
a. Los ingresos procedentes de su patrimonio y demás de derecho privado.
b. Los tributos propios clasificados en tasas, contribuciones especiales e impuestos y los recargos exigibles sobre los impuestos de las comunidades autónomas o de otras entidades locales.
c. Las participaciones en los tributos del Estado y de las comunidades autónomas.
d. Las subvenciones.
e. Los percibidos en concepto de precios públicos.
f. El producto de las operaciones de crédito.
g. El producto de las multas y sanciones en el ámbito de sus competencias.
h. Las demás prestaciones de Derecho público
In terms of private law income, Art 3.1 TRLRHL defines this as anything forming part of the patrimony of the Entidades Locales, like inheritances/donations. Can be within patrimony: goods, personal or real rights capable of economic valoration, as long as they’re not subject to public use or service.
Also, private income includes money obtained from alienation of assets as a result of their desafectacion as public property and subsequent sale.
On the other hand, income from enaenación / gravamen of patrimonial goods and rights is limited, given that it can’t be employed to finance running costs, except in the case of surplus parcels [parcelas sobrantes] of public roads that can’t be built on or are unusable for municipal or provincial services.
Local entities can establish precios públicos for service or activities of the local entity’s competence (unless it is something that has to be provided publicly because it is not offered in the private sector).
Regarding the participation of the municipios in state taxes, there are two models:
- Modelo de cesion de impuestos estatales
Municipios that are capitals of the province, of the CCAA, or have more than 75,000 inhabitants.
Part of the municipal income from state-owned taxes (such as IRPF [income tax] and IVA [vat], taxes on alcohol) is transferred to state. Around 2%.
Also participates in the “Fondo Complementario de financiación” , fixed yearly in the LPG based on the total contribution of the entity to state taxes in 2003, discounting the cesión mentioned above.
- El modelo general, sin cesión
Rather than cesión, the entire participation of these municipios in state taxes is fixed every year by the LPG based on their contribution in 2003, taking into account the evolution of the tax income of the state.
The amount paid by each municipio is calculated in the following way:
50% as a function of the number of inhabitants
- 5% by the esfuerzo fiscal medio of the municipio
- 5% based on el inverso de la capacidad tributaria
El poder tributario local
Poder tributario de entes locales - artículos 133.2 y 142 de la Constitución.
The reglementary nature of the disposiciones normativas locales, and the constitutional principle of reserva de ley en materia tributaria, drive and limit the poder tributario of the entes locales.
They cannot create tributos ex novo; they require the habilitación previa of a law (state or autonomica).
However, local orders occupy a special position in the sources of tax law because of their special and intense colaboration with the law to comply with the principle of reserva de ley. They achieve this with autoimposicón, one of the two functions of reserva de ley tributaria.
The local tax system is basically the content of the TRLRHL. This law includes different municipal and provincial taxes and laws that regulate their essential elements as well as the hecho imponible.
El régimen, pues, del sistema tributario local es básicamente el contenido en el TRLRHL. En esta ley se incluyen diferentes tributos municipales y provinciales, y aparecen reglas que regulan los elementos esenciales de estos tributos, tales como el hecho imponible [means circumstances where taxes can be imposed].
Conversely, Art 6 TRLHL establishes limits, which are nearly the same as in the CCAA.
Principle of territorialidad, neutralidad.
The normativa reglamentaria local is limited to establishing and applying taxes in the cases where this is possible, quantification debt within legal limits, and management competencies.
Obligatory municipal taxes:
- el Impuesto sobre Bienes Inmuebles (IBI), que grava la titularidad de derechos reales, como el de propiedad, sobre bienes inmuebles
- el Impuesto sobre Actividades Económicas (IAE), que grava el mero ejercicio de actividades empresariales, profesionales o artísticas, tanto si se ejercen en local determinado como si no
- el impuesto sobre vehículos de tracción mecánica (IVTM), que grava la titularidad de vehículos de tracción mecánica
Optional municipal taxes:
- el impuesto sobre construcciones, instalaciones y obras (ICIO), que grava la realización, dentro de un término municipal determinado, de cualquier construcción, instalación u obra para la que se exija la obtención de la licencia de obras o urbanística
- el impuesto sobre el incremento de valor de los terrenos de naturaleza urbana (IIVTNU)
Entidades locales can demand special tasas and contributions.
Regulación general de las tasas locales en arts. 20 a 27 TRLHL.
Can establish tasas for exclusive use or special use of the public local domain, and for administrative activities and services that affect or benefit passive subjects in a particular way.
However, cannot demand tasas for the following services:
- abastecimiento de aguas en fuentes públicas
- alumbrado de vías públicas
- vigilancia pública en general
- protección civil
- limpieza de la vía pública
- enseñanza en los niveles de educación obligatoria (art.
Art 20 part 3 and 4 TRLRHL establishes a non-exhaustive list of tasas. The list in part 4 is not binding.
Can demand special contributions for public works, and establishment and extension of public services, of a local character.
La base imponible (taxable) is a maximum of 90% of the cost.
Will be divided between passive subjects based on criteria like, for example, los metros lineales de fachada de los inmuebles, su superficie, su volumen edificable y el valor catastral for the Impuesto Sobre Bienes Inmuebles.
TRLRHL sets out the possibility that the provinces can establish and demand taxes, special contributions, and a recargo [surcharge] on the Impuesto sobre Actividades Economicos. Metropolitan areas can establish a recargo on the Impuesto sobre Bienes Inmuebles.
Local taxes are generally managed by local entities. However, Art 7 TRLHL allows local entities to delegate management to CA or other local entities in the territory. Can also delegate liquidation inspection and recaudación tributaria.
In Barcelona, most of the municipios have delegated their competencies in el Organismo Autónomo de Gestión Tributaria de la Diputación de Barcelona.
Also, Art 8 TRLRHL points out the CA and local entities will collaborate on all these things.
La UE
Limitations on internal poder financiero coming from the EU: cesión de competencias to the EU. Art 93 CE.
Although EU didn’t always have these powers, can’t say it’s a mere delegated agent of the member states. This is because it has its own power, coming from Treaties and the Constitutions of the member states.
Hacienda de la UE
International organisations are normally based on contributions from member states.
However, since 1970 the EU has had a system involving its own resources.
Art 311 TFUE. The provisions applicable to the own resources of the EU are regulated through the decisions del Consejo, adopted through a special legislative process by unanimity and consultation of the European Parliament.
Furthermore, so that this decision comes into force it must be passed by the member states according to their constitutions.
In this way, new categories of own resources can be established or existing categories can be deleted.
The own resources of the EU are the derechos [duties] fixed by EU institutions in commercial exchanges with other countries, including derechos de aduana [customs duties] and cotizaciones [quotes], and duties on sugar; the application of a uniform rate of 0.30% a las bases imponibles de IVA armonizadas; and the application of a uniform rate (determined in the budgetary procedure, depending on other income) to the gross national income of member states.
Also, there are corrections and tipos reducidos [reduced rates] to prevent certain countries suffering a burden in relation to their relative prosperity.
In practice, over 80% of EU income comes from state contributions, based on IVA and renta nacional bruta [gross national rent], and hence the EU does not truly have economic independence.
Outside the system of own resources, there is the Impuesto sobre Salarios de los Funcionarios de la Unión Europea.
The term “recursos propios” can be applied narrowly or widely. In a strict sense the expression should be reserved for those created by the decision of the Consejo according to 311 TFUE. However, VAT shouldn’t consider itself an ‘own resource’ of the EU because it comes from the member states (derecho de crédito). On the other hand, the Impuesto sobre Salarios de los Funcionarios de la UE isn’t a a ‘recurso propio’ of the EU, but the normative competences and management correspond only to the Union
Also, the EU obtains patrimonial income, income from the imposition of fines, and from credit operations.
On the other hand, the EU has its own budget: all the income and spending of the EU. Anual character. It must fit with the Marco Financiero Plurianual, with a minimum of 5 years (Art 312 TFUE), must be agreed unanimously by the Consejo after being agreed on by the Parlamento Europeo, with the aim of guaranteeing an ordered evolution of the spending of the EU.
Incidencia del derecho de la UE en los ordenamientos tributarios de los estados miembros
Tratado de Funcionamiento de la Unión Europea regulates various things that are relevant to taxes. The most obvious example is the suppression of derechos de aduana [customs duty] between member states, which are a tax.
However, other provisions from treaties that are more general also have to do with taxes. For example, the principle of no discrimination for reason of nationality, community liberties (free circulation of goods (mercancías), people and capital), and libre prestación de servicios, and the prohibition of state aid [ayudas de estado].
La supresión de los derechos de aduana
Art 26 TFUE. Interior market guaranteeing free circulation of mercancías, personas, servicios, y capitales.
To achieve this objective, Art 30 TFUE prohibits customs duty (import and export tax).
Art 31 TFUE - derechos de arancel aduanero [common customs tariff duties] are fixed by the Consejo at the proposal of the commission.
Principio de no discriminación por razón de la nacionalidad
Art 18 TFUE
TJUE considers that discrimination not based on nationality but which practically leads to the same result is also inadmissible.
In some cases, tax contributors who are residents and those who are non resident receive differing treatment.
Libertades de la UE
In determining whether the tax rules of a state is compatible with EU freedoms, the TJUE analises the following things:
First it has to determine which liberty is arguably at issue, and then has to decide whether a discriminación is produced.
It must then analyse whether the restriction is justified for any exceptional reason and where this is the case the national norm is proportionate.
Libre circulación de mercanías
Arts 38 and 37 TFUE. Establishment of the Unión Aduanera.
Libre circulación de personas
Allows nationals of member states move to other member states to carry out economic activity (as a salaried worker, or not - libertad de establecimiento).
Schumacher case.
TJUE allows residents and non residents to be treated differently in terms of taxes because they are not in the same situation. However, it should be avoided that this gives rise to discrimination when they are actually in a comparable situation: that is, when the non-resident obtains most of his income in the host state. In such cases, non-residents must also be able take advantage of the rules that allow for the personal and family circumstances of the taxpayer to be taken into account.
El derecho o libertad de establecimiento (arts. 49 a 55 TFUE) allows EU citizens to move to other states and carry out economic activities, whether this is in direct form or through agencies or filiales [subsidiaries], without medidas fiscales limiting their liberty.
In this way, a sociedad matriz of a member state should receive the same independent fiscal treatment regardless of whether its subsidiaries are in the same country or abroad.
La libre prestación de servicios
La libre prestación de servicios (arts. 56 a 62 TFUE) is differentiated from libertad de establecimiento due to its temporal and sporadic character, and not demanding physical displacement.
It is of residual application, because it operates in defect of the other liberties.
Case of Gerritse, on different fiscal treatment of residents and non residents.
La libre circulación de capitales
La libre circulación de capitales (arts. 63 a 66 TFUE) states that the tributary rules of a state can’t disincentivise the investment of its residents in other member states or investments from people who are not residents in the territory.
TJUE jurisprudence has mainly been concerned with the correction systems and the double economic imposition produced as a consequence of the payment of dividends when the sociedad that pays and that that receives the dividend are in different member states.
Also, the TJUE has analysed the methods of correction of double imposition from the point of view of the state where the society paying the dividend is situated, as well as other sorts of measures that can affect this freedom, such as the existence of other sorts of fiscal regimes that establish differences according to the place of investment, in the sense that they treat companies in their country more beneficially.
El derecho general de los ciudadanos de la UE a la libre circulación
Free movement of citizens (art. 21 TFUE) is applied subsidiary to the other freedoms and also includes people who are economically inactive who make use of their right to move around and live in another EU country, without the tax rules being able to prevent them from doing this.
Posibles justificaciones a una normativa tributaria nacional discriminatoria o que restrinja una libertad y cumplimiento del test de proporcionalidad
It’s possible that certain discriminations or restrictions are justified, and so are compatible with the EU rules.
These exceptions can be of the following sort:
- Exceptions in the TFUE, like Art 65.2.a that permits restrictions on free movement of capitals that result from applying fiscal dispositions that distinguish between contributors with respect to their place or residence or place of investment of capital, or Art 65.2.b which states that free circulation can be limited by measures which try to stop the breaking of tax law.
- ‘Exigencias imperativas de interés general’: need to achieve coherence in the system, efficiency of physical controls, risk of tax evasion, general interest coming from normas extrafiscales, like the right to a vivienda, promotion of investigation and development, the environment, or protection of consumers.
Must comply with principle of proportionality.
