The Supreme Court has rejected on Monday the nullity incident presented by the Municipal Housing Company of Rivas Vaciamadrid against the ruling on the payment of the tax of documented legal acts (IAJD) of mortgages, and has determined that it was entitled to review The doctrine.
The plenary session of the contentious-administrative chamber held a hearing in which it was not a question of reviewing who should pay this tax, but it has been limited to studying technical aspects related to the procedural guarantees of the applicant.
On October 18, the Supreme Court decided to attribute the payment of the legal documents tax to the banks, for less than a month after that opinion was put on hold and finally concluded, after a bitter debate and by 15 votes against 13, which corresponded to the client.
A few hours after hearing the ruling, the Government approved a royal decree establishing that it was the bank and not the client that assumed the IAJD, a fee that entities can not also deduct since the corporate tax was also modified.
At the origin of this ruling was the lawsuit filed by the municipal company of Rivas, which considered that it did not have to pay the tax, and that subsequently presented the nullity incident on the grounds that fundamental rights had been violated, which was rejected today by the Supreme.
Usually, these types of appeals open the door to a subsequent cassation before the Constitutional Court, which is the body in charge of resolving if fundamental rights have been violated, although this does not mean that it is mandatory to resort.