Understanding Tax Principles: Special Contributions and Economic Capacity
Special Contribution
Special Contribution is a tax based on the principle of benefit that is intended to cover capital expenditure to be made in public works or the establishment or expansion of services. Those who see benefits from the administrative action are required to pay, since it is reflected in the increased value of property or benefits in particular. By law, special contributions are those taxes in which the chargeable event is the acquisition by the taxpayer of a benefit or an increase in the value of property resulting from the implementation of public works or extension of public services.
According to this, the fact supports two taxable items:
- The activity is managed in a published work, all financed with a special contribution.
- A managed activity produces a benefit to the community but also benefits holders of certain assets. Therefore, they are forced to pay so that if there is no special benefit, the special contribution cannot be required of individuals.
Principle of Economic Capacity
According to Article 31, all contribute to sustaining public expenditure according to their economic capacity.
This principle has several functions:
- It is the standard that underlies the duty to contribute. The Constitutional Court has established the connection between this foundation and the principle of economic capacity.
- It serves as a limit to the legislature in shaping taxes. Once taxable events are selected for a tribute, the legislature must establish the elements of quantization to be able to graduate the economic capacity of each taxpayer.
Principle of Equality
This principle is formulated by requiring equal treatment in law so that the distribution of the tax burden becomes equal among all taxpayers. This means that the law must treat the same as equal and the uneven as unequal, according to the parameters in the law, to establish this principle of economic capacity.
Principle of Generality
Here, not only nationals will help, but also all the people who are in the scope of a law.
Principle of Progressivity
As the income of a subject rises, the tax increases in proportion to the increase in wealth. It is related to the principle of equality. Equality is achieved by sharing the tax burden more than proportionately in response to capacity levels of tribute from the administration, but taking into account the beginning of the confiscatory limit.
Principle of Equality
The formula demands equal treatment under the law so that the distribution of the tax burden becomes equal among all taxpayers. All who have the same economic capacity will be taxed the same, and the other parameter, such as progressivity, means that more financial power will lead to more than proportional taxation.
Principle of Generality
Here, all contribute, not only nationals but also all the people who are in the scope of a law.
Principle of Progressivity
As taxable income increases, the tax increases in proportion to the increase in wealth.
Principle of Legality
The creation ex novo of a tax must be regulated by law. Its essential elements are the imposition, accrual basis, and payable tax base.