Understanding Public Accounting, Finance Acts, and Budget Legality
Key Aspects of National Public Accounting
The nation’s public accounting is characterized as an integrated, unique, and uniform accounting system. It’s integrated because it reflects all resources and bonds. It’s unique because it’s singular, not allowing other accounting systems. It’s uniform because all similar economic facts should be registered the same way.
The Finance Act
The government budget is a legal reserve established by law. The Budget Act is a periodic law approving the government’s revenue
Read MoreKey Concepts of Tax Law: Legal Nature, Retroactivity, and More
Key Concepts in Tax Law
Legal Nature of Tax Provisions
Tax revenue and expenditure are the main fields of financial activity; therefore, the laws that regulate them are key to financial ordering. Although in the past, tax provisions were considered exceptional rules, this consideration is no longer valid. Tax provisions, like all legal rules, constitute a mandate with social efficiency and an organizing purpose, possessing the characteristics of any legal rule:
- The existence of a will that derives
Taxable Events, Exemptions, and Liability Termination
Taxable Event, Non-Liability, and Exemption
The taxable event is the circumstance defined by law that triggers the obligation for the taxpayer to make a coercive economic contribution. Its occurrence legally binds the taxpayer to the tax payment obligation, as defined in Article 20 of the LGT (General Tax Law).
The taxable event is the specific situation established by law for each tax, and its occurrence gives rise to the main tax obligation. The law may refine the definition of the taxable event
Read MoreStructure of Public Administration in Spain
General State Administration (AGE)
The General State Administration (Administración General del Estado – AGE) acts across three dimensions:
- Central: Government level.
- Peripheral: Delegates and Sub-delegates.
- Functional: Autonomous agencies and public enterprises.
Central Administration
The Central Administration implements the administrative policy of the Government. To perform these actions, it is organized into departments (ministries) with central services.
The Prime Minister is the most important
Read MoreObjective Law vs. Subjective Right: A Legal Framework
Objective Law vs. Subjective Right
This is the distinction between Derecho objetivo (law) and derecho subjetivo (right).
- Derecho objetivo (law): It is the set of principles and norms to which human relations in society are subjected. It is a code broad enough to address all aspects that can arise in every personal or social interaction. Thus, among other things, law (Derecho objetivo) establishes how legal contracts must be established between individuals, what duties a worker has, what is considered
Tax Subjects: Active, Taxpayer, Substitute, and Solidarity
Active Subject: The active subject of a tax is the public entity that develops the procedures for the application of the tribute. Therefore, we can define the active subject as the “public entity holder of the administrative power for the management and requirement of the tribute.” Since the establishment of taxes can only be made by the holders of the financial power (article 133 CE: the state, the CCAA, and the local corporations), in the cases that other public entities different from these
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