According to the City Councils, when a property is sold, it does not matter whether a loss or gain is obtain: the municipal capital gain must always be paid. However, the Courts are beginning to think differently… Let’s go ahead, that in articles to of the Consolidate Text of the Local Finance Law, approve by Royal Legislative Decree the tax on the increase of value of urban land (commonly known as “surplus value”). Doctrine and Jurisprudence have always base their foundation on Article of the Spanish Constitution when it states: “ The community will participate in the capital gains generate by the urban planning action of public powers.” In accordance with art. TRLRHL, the capital gain is a direct tax, which taxes the INCREASE IN VALUE experience by urban land.
The object of the transmission must be land
From the date of purchase to the date of sale, it is a sine qua non requirement that an of the asset occurs . As has been lightly previously, one of the unavoidable requirements for a transfer to be subject to Hong Kong Mobile Number Database capital gains tax is that the transfer asset has increase in value . So much so, that as we have reiterate above, the nomenclature of the tax assign by the legislator is nothing more than the “ INCREASE on the value of urban land.” Huge, more than recent, and extensive Jurisprudence points in this direction . For all and “ad exemplum”, it is enough to cite the Judgment of the Superior Court of Justice of Catalonia Contentious Chamber, Section , which reaches the conclusion that when it is accredite and prove that in the specific case there has been no increase, in economic and real terms.
Constitutes the first element of the taxable event
The tax will not be generate and this despite the content of the objective calculation rules of article of the LHL, since by missing an essential element of the taxable event, the tax obligation cannot arise . The Sentence concludes: “ The objective absence of an increase in value will give rise to the Argentina Phone Number List the tax since the legal contradiction cannot and should not be resolve in favor of the calculation method and to the detriment of economic reality, since this would mean ignoring the principles of equity. , justice and economic capacity ”. “ These conclusions must be consider unquestionable at the current time, in view of the economic reality. If legal fiction were the only possible interpretation of article LH it would have to be considere unconstitutional since the Constitution prevents the taxing of fictitious economic capacities of citizens.
