Navigating Tax Disputes: Constitutional Court to Resolve Conflict between Government and Senate on Inheritance and Gift Tax”.

The Constitutional Court is poised to resolve the conflict between the Government and the Senate regarding inheritance and gift tax. The court of guarantees has admitted to processing the Executive’s challenge against the Senate Bureau’s agreement to process a bill that repeals legislation related to these taxes.

The Treasury has argued that this decision may violate constitutional and Senate regulations on the power of budget veto. However, it is important to note that the admission of the appeal for processing does not suspend the bill’s processing, which was presented by the PP. This marks the first conflict between state institutions that the Constitutional Court will resolve in this legislature.

The Government relies on Article 134.6 of the Constitution in its challenge, which states that proposals or amendments leading to a decrease in budgetary income require government consent for processing. The Senate Board did not obtain this consent. Following a Council of Ministers meeting on December 19, the Minister of Presidency and Justice warned that the Senate needed to halt bill processing as it aimed to eliminate inheritance tax nationally. The Government argues that its consent is essential for any regulation resulting in a decrease in budgetary income as outlined in Article 134.6 of the Constitution.

However, objections were raised by many parties who maintain that inheritance tax should be abolished as it is seen as an unjust burden on families and individuals, especially during times of economic uncertainty. Furthermore, proponents argue that eliminating these taxes would provide more opportunities for investment and growth within society.

The Ministry of Finance conducted an extensive report indicating that removing these taxes would lead to significant revenue losses, particularly for autonomous communities where they are transferred without being applied frequently.

This conflict highlights how difficult it can be for governments and senates to come to an agreement on issues related to taxation, especially when there are competing interests at play.

As such, it remains to be seen what outcome will result from this legal battle between two powerful branches of government.