Constitutional Court set to Mediate Conflict over Inheritance and Gift Tax Legislation in Spain

The Constitutional Court will soon resolve the conflict between the Government and the Senate over inheritance and gift tax legislation. The court has admitted to processing the Executive’s challenge against the Senate Bureau’s decision to process a bill that repeals the tax-related law.

The Treasury argues that this decision may violate constitutional and Senate regulations on the power of budget veto. However, admission of the appeal does not suspend the bill’s processing, which was presented by the PP. This marks the first conflict between state institutions that will be resolved by the Constitutional Court in this legislature.

The Government relies on Article 134.6 of the Constitution in its challenge, stating that proposals or amendments leading to a decrease in budgetary income require government consent for processing. The Senate did not obtain this consent, leading to a formalized appeal that will now be resolved by the Constitutional Court after arguments are provided by both parties involved.