Today, Tuesday, October 26, the Constitutional Court has issued a ruling declaring the unconstitutionality and nullity of the Tax on the Increase in Value of Urban Land, and more specifically of articles 107.1, 107.2 a) and 107.4 of the Local Finance Law.

The articles affected by unconstitutionality are those related to the method of determining the taxable base of the tax, the cornerstone for its calculation, and this, as a consequence, leaves the possibility of taxation practically annulled.

However, the sentence - which has three individual votes - has not yet been published. Shortly and with a more in-depth analysis, it will be possible to obtain definitive and more certain conclusions regarding its scope.

The basis for the unconstitutionality of the affected articles lies in the objective method of calculating the tax base, which, according to the now invalidated regulation, determined that there was always an increase in the value of the land during the period of the imposition, regardless that this increase actually existed and the amount thereof.

The ruling declares the intangibility of the firm situations existing before the date of the approval of the sentence; for example, of those self-assessments presented if today it has been more than four years. Which a sensu contrary supposes the existence of innumerable cases in which if the temporality is less, the return of what was wrongly entered may be requested.

The office is at your disposal to solve any questions that may arise in this regard.