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Hacienda to dismantle the new Catalan tax agency

Intervention to curb government's plan to collect all taxes

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Hacienda to dismantle the new Catalan tax agency

The Ministry of Finance will dismantle all tax structures of Generalitat of Catalonia that do not correspond to its own functions established in legislation, as confirmed by government sources to country.

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As soon as implementation of article 155 of Constitution is adopted, authorities shall examine se mechanisms with scrutiny. The Generalitat had already announced its intention to have a tax agency ready "for one minute of independence". Experts underline enormous difficulties involved in trying to create an ex-Novo collection system.

Not to miss a single euro of fundraising. That is objective that has been marked by Ministry of Finance when accounts of Generalitat of Catalonia are involved. The team that manages Cristóbal Montoro will have control even of regional taxes that until now managed department of Economy. The entry into force of article 155 shall empower government to dismantle all computer structures that were orchestrating Generalitat to seize tax collection in assumption of independence. If so, experts predicted a clash of legitimacy between two haciendas. And one that showed a greater capacity to seize and impose its legislation would win this crucial battle.

By counting on ir side with banks, Ministry of Finance had it much easier than Generalitat. With social address outside of Catalonia, collaboration of entities would pave way to Montoro. Not to mention all sources of information that State Treasury has already consolidated. All this would allow him to seize wages and control any movement. Information that Generalitat would lack when trying to collect income. I could only count on goodwill of most contumaces and willing to suffer pressure of Spanish treasury.

The Secretary of Finance of Generalitat, Lluís Salvadó, one of detainees last September 20 by Guardia Civil in an operation against celebreración of referendum of October 1, and admitted that banks were not cooperating in construction of a Own tax system. Moreover, crossed for this reason to executives of Sabadell of "Molt Xungos".

"With whole computer system we are trying to do a fundamental thing: being able to collect taxes without collaboration of banks." "It's complicated, but we're doing it," said Salvadó on December 15, 2016. And he added: "We are creating 130 sources of information that will allow us to dispose of a few months from some very solvent databases to confront minute one of Declaration of Independence." The Catalan treasury had a very rudimentary computer system known as Gaudí. This only serves to process taxes exclusively autonomic. So Generalitat initiated development of a new program baptized as Espriu.

Tax experts argue that it takes years to build a structure even similar to that of Spanish tax agency. In addition, y conceive idea of operating without banks as a kind of chimera and a return to operative of past centuries. But it is possible that Spanish Treasury loses some income if Generalitat declared fiscal disobedience and request that it be taxed directly to Catalan administration. For this reason, Ministry of Finance was very convincing when in September Generalitat presented structures of a Catalan tax agency: he recalled that he would penalize and seize all those who do not pay ir taxes to Hispaniola.

Now that it has capacity to intervene, Ministry of Finance will have opportunity to erase se programs and dismantle se structures. And so it is confirmed by sources of government.

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