Tax Law: Financial Regulations and Legal Interpretation
Tax Law and Financial Regulations
3.2 The Arts. CE 31.3 and 133.1:
- Establish the Reserve ppio Law on financiera.
- 31.1: Economic benefits can only be established through a public character law.
- 133.1: The power to raise taxes lies in the State by law.
The EC also states that State budgets must be approved by law, and an organic law shall regulate the financing system of regions. Therefore, the establishment of taxes requires a law to create and set its essential elements.
Types of Law
The EC distinguishes between ordinary and constitutional acts. Organic laws are those that our EC provides for the regulation of a subject; in our area, it is the “Organic Law on Financing of the SCAN.” If a matter is reserved for the law, it cannot be delegated to a regulation.
Central vs. Autonomous and Local Regulations
3.4 We must differentiate in financial matters between the Central and Autonomous regulations, and Local Administration regulations.
Central and Autonomous Regulations
They are executive regulations, i.e., they develop expectations of a legal standard when it so requires.
Local Regulations
For example, a city council approves its budgets through a regulation. Tax Ordinances are regulations; however, they have much greater leeway than state and regional regulations because they lack the Legislative Assembly, and the EC recognizes their financial autonomy. They are “qualified regulations.”
Interpretation of Tax Regulations
5.1 They are interpreted in accordance with established criteria. Ultimately, there is a prevalence of the economic reality of the JCA. A different question is whether a JCA score can be carried out after the parties have agreed to a transaction but have not given a different JCO garment.
In short, we must turn to the criteria for interpreting the Civil Code at the state level. The administrative interpretation of state tax regulations is carried out by the Gen. Directorate of Taxes; its resolutions are binding by the enforcers of state taxes. The economic courts admit that the outcome of the appeal against the acts issued by the enforcers of state taxes are bound by the doctrine emanating from the admitted economic center court.
So many enforcement bodies, such as eco-admitted tribunals, are bound by the T. Supreme Court has consistently held. Finally, the State Agency for Tax Administration does not interpret the rules but merely reports on them. The same is preached at the regional or local level but within the framework of its powers.
Tax Code Article 12
5.2 In accordance with art. 12 of the Tax Code, if the terms used in a tax provision are not defined in its rules, they shall be construed in accordance with their legal, technical, or usual sense, as appropriate, based on the tax obligations required under the legal nature of the fact, act, or transaction made, whatever the form or name the interested parties had given it and regardless of the defects that could affect its validity.