The Battle Between Government and Senate Over Inheritance Tax: A New Chapter in Constitutional Conflict Resolution in Spain

The Constitutional Court is set to resolve the conflict between the Government and the Senate regarding the inheritance and gift tax. The court of guarantees admitted to processing the Executive’s challenge against the Senate Bureau’s agreement to process a bill that repeals the legislation related to the tax. 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 the Government’s consent for processing. The Senate Board did not obtain this consent.

Following a Council of Ministers meeting on December 19, the Minister of the Presidency and Justice warned that the Senate needed to halt the bill’s processing, which aimed to eliminate the 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.

The Ministry of Finance’s report indicated that eliminating the tax would result in significant revenue losses, particularly for autonomous communities where it is transferred and not often applied. However, despite objections from both parties, including warnings from government officials and ministers, as well as concerns raised by opposition parties, Senators voted to maintain processing of Bill XYZ.

This decision led to a formalization of an appeal that was filed by government officials at various levels. The appeal was reviewed by legal experts who concluded that it was admissible for processing by constitutional law due to its potential impact on state institutions.

The court has scheduled hearings on both sides of this case after arguments are provided by all parties involved. It remains uncertain whether either side will be able to convince judges about their position on this matter.

In conclusion, this conflict highlights how difficult it can be for governments and legislatures to come together when implementing policies that affect national finances. It also serves as a reminder of how crucial it is for leaders at all levels of government to work together towards finding solutions that benefit everyone involved.