Universitat Internacional de Catalunya
Financial and Tax Law 1
Other languages of instruction: Spanish
Teaching staff
• jlrodriguez@uic.es
• The lecturer will read your emails and reply daily to any questions students may ask regarding aspects of the subject.
Introduction
In this subject, the constitutional principles that govern in the tax field are examined, as well as the different forms of creation and interpretation of tax rules. Next, the study of revenue and public expenses is addressed, as manifestations of the financial activity that financial law deals with. Among all public revenues, taxes stand out, to which special attention is devoted. As far as public spending is concerned, the issues under discussion are the concept, nature, content, legal effects and structure of the budget, budgetary principles and the phases of the budget cycle.
On the other hand, already in the field of tax revenues, the elements of identification of the tax (taxable and taxable fact) and quantification (taxable, liquidable base, tax rate and tax debt), as well as the causes of extinction of the tax debt are studied. Finally, the main procedures for applying taxes are analysed: the management procedure (aimed at quantification and also at the verification of tax debts), inspection, collection and review. In addition, infringements and tax sanctions and the sanctioning procedure are studied.
In conclusion, an understanding of the general concepts of the Spanish financial and tax system is of particular importance to legal professionals. The so-called “general part” of this branch of law provides the necessary tools to “read” and “understand” the tax laws that form part of our legal system.
Objectives
1. That the student masters the fundamental concepts of the Spanish financial and tax system.
2. That the student acquires the necessary capacity for legal reasoning in financial and tax matters.
3. Students should know how to apply the theoretical knowledge learned to the resolution of real cases of this legal discipline.
Competences/Learning outcomes of the degree programme
- 01 - To acquire the ability to understand main ideas and participate in conferences or professor led lectures in their academic context.
- 03 - To be able to express one's ideas and arguments in an orderly and coherent way both in oral and written form (written and oral techniques)
- 11 - To acquire skills for autonomous learning
- 17 - To understand and have knowledge of public and private institutional principles in their origin and as a whole
- 18 - To understand the different ways of creating Law within its historical evolution as well as its current state
- 19 - To develop the ability to write legal texts
- 22 - To be able to identify and interpret documentation normally used in legal and negotiating settings
- 23 - To identify the state, doctrinal and legal framework of a complex legal issue
- 24 - To acquire the skills to resolve problems and make decisions using relevant information and by applying correct methods while placing the issue within a legal system context
- 25 - To acquire the skills for legal paperwork processing: composing texts, clarifying a position on a matter, use of forms, etc.
- 29 - To be able to gather and interpret economic documentation
Learning outcomes of the subject
1. Will know and understand the rules contained in the general part of Financial and Tax Law.
2. Will have acquired a solid knowledge about the tax regulation of the general concepts of Financial and Tax Law.
3. Will know and understand the bases of budgetary law.
4. Will have acquired adequate knowledge of tax procedures.
5. Will identify and interpret the documentation of habitual use in the field of this subject.
6. Will be able to accurately identify the normative, doctrinal and jurisprudential status of a legal problem related to the field of this matter.
7. Will have developed skills in solving problems and conflicts in the tax order.
8. Will have acquired skills to be managed with the common elements of procedural actions related to this matter.
9. Will have acquired skills in the use of ICT in relation to obtaining legal information (legislative databases, jurisprudence, ...).
Syllabus
A) FINANCIAL LAW
TOPIC 1. FINANCIAL LAW.
1.1. Financial activity: concept and nature.
1.2. Financial law: concept and nature.
1.3. Tax law: concept and nature; sources.
1.4. Public expenditure law.
TOPIC 2. THE LEGAL FRAMEWORK OF THE BUDGET.
2.1. The General Budget Act.
2.2. The budget: concept, nature and types.
2.3. Budgetary principles.
2.4. The General State Budget: concept, content and sources of its legal framework.
TOPIC 3. PUBLIC REVENUE AND EXPENDITURE.
3.1. Public expenditure
3.2. Limitation of budgetary appropriations for expenditure.
3.3. Public revenue: concept and classification.
3.4. Public debt: concept, nature, classification. Legal framework.
TOPIC 4. FINANCIAL AND TAX POWERS.
4.1. Financial and tax powers under the Constitution.
4.2. The regional financing system: the common regime and the provincial regime.
4.3. The common funding regime: the LOFCA.
4.4. The tax system: own taxes and ceded taxes.
4.5. Local Tax Administations.
B) TAX LAW. GENERAL PART. SUBSTANTIVE TAX LAW: GENERAL THEORY OF TAXATION:
TOPIC 5. TAXES.
5.1. Concept, nature and types.
5.2. Tax: its concept and basis.
5.3. Classification of taxes.
5.4. Principles of taxation.
TOPIC 6. THE TAX SYSTEM.
6.1. The Spanish tax system: development and basic structure of the current system.
6.2. The European Union’s fiscal policy.
TOPIC 7. APPLICATION OF TAX RULES IN SPACE AND TIME.
7.1. Application of tax rules: temporal and spatial scope.
7.2. Double taxation, whether domestic or international: double taxation agreements.
7.3. Interpretation and integration of tax rules: the prohibition on analogy.
TOPIC 8. THE TAX LEGAL RELATIONSHIP.
8.1. Concept, nature and elements.
8.2. Tax obligations: their categories.
8.3. The taxable event.
8.4. Obligations and duties of the tax authorities.
8.5. Rights and safeguards of taxpayers.
TOPIC 9. TAXPAYERS.
9.1. Concept and categories: the taxpayer and those liable for the tax.
9.2. Capacity to act in tax matters.
9.3. Tax domicile.
9.4. Tax exemption.
TOPIC 10. TAX BASE, TAX RATE AND TAX LIABILITY.
10.1. Concept and methods of determination.
10.2. Direct and indirect assessment. Objective assessment.
10.3. Verification of values.
10.4. The assessable base.
10.5. The tax rate.
10.6. The tax liability: its constituent elements.
TOPIC 11. THE EXTINCTION OF THE TAX LIABILITY.
11.1. Methods of extinguishing the tax liability. Payment and other methods.
11.2. The limitation period.
11.3. Security for tax claims.
TOPIC 12. BREACHES OF TAX LAW.
12.1. Compliance/non-compliance with the law: evasion, avoidance and economic choice.
12.2. Anti-avoidance measures: the general anti-avoidance rule, conflicts in the application of tax law; characterisation and sham transactions.
12.3. Territorial tax avoidance: the OECD and G20 international tax reform to curb the erosion of tax bases and the shifting of profits by large multinationals (BEPS: Pillar I and Pillar II).
12.4. The legal response to tax evasion: Reference to tax penalty law and criminal law.
TOPIC 13. TAX PENAL LAW: TAX OFFENCES AND PENALTIES.
13.1. The principles governing the power to impose penalties in tax matters.
13.2. Tax offences: concept, classification and types of offences.
13.3. Extinction of liability for penalties.
13.4. Reference to offences against the Treasury.
B) TAX LAW. FORMAL TAX LAW: TAX PROCEDURES
TOPIC 14. ADMINISTRATIVE PROCEDURES.
14.1. Self-assessment.
14.2. Administrative procedures.
14.3. Data verification procedure.
14.4. Limited audit procedure.
TOPIC 15. THE TAX AUDIT PROCEDURE.
15.1. Functions of the Tax Audit Department.
15.2. The tax audit procedure: stages, conduct of proceedings and documentation.
15.3. Duration of tax inspection proceedings.
15.4. Conclusion of tax inspection proceedings: the assessments.
TOPIC 16. COLLECTION PROCEDURE.
16.1. The life cycle of a tax debt: voluntary and enforcement payment periods.
16.2. The enforcement collection procedure. Stages: demand for payment, attachment and forced realisation of attached assets.
16.3. Deferrals and payment by instalments.
TOPIC 17. PENALTY PROCEDURE.
17.1. The procedure and its safeguards: commencement, conduct and conclusion.
17.2. Specific provisions regarding suspension and the accrual of interest.
TOPIC 18. ADMINISTRATIVE REVIEW OF DECISIONS.
18.1. Administrative review of decisions. General issues.
18.2. The application for rectification.
18.3. The economic-administrative claim: the procedure at first or sole instance before the Economic-Administrative Courts (TEAs).
18.4. Appeals against decisions of the TEAs
18.5. Suspension of tax liability.
18.6. Special review procedures: nullity as of right, revocation…
Teaching and learning activities
In person
The subject comprises 18 topics. The assessment system is progressive and continuous.
During the sessions, the lecturer will present a comprehensive overview of the relevant topic on the syllabus, through a theoretical presentation accompanied by practical examples.
As part of the continuous assessment, there will be:
- A multiple-choice mid-term theory exam, to be held on 11 November, covering the first 13 topics.
- A practical case study to be carried out in groups of between 4 and 5 students, which must be submitted and presented in class before the end of the course. It will be a practical case study in the sense that students will have to resolve a real, anonymised case, applying the knowledge acquired during the course.
To pass the continuous assessment, students must complete both the multiple-choice test and the practical case study.
Furthermore, regular attendance at classes is required to pass the continuous assessment. In fact, any of the following circumstances will result in a fail for the continuous assessment: (i) having more than 4 absences; (ii) failing to complete the multiple-choice test or the group practical case study.
The final examination will be an oral examination on one of two topics selected at random. The list of topics to be covered will be provided before the end of the course and will correspond to sections or subsections of the 18 topics covered in class. Students will have a maximum of 10 minutes to present their chosen topic.
Evaluation systems and criteria
In person
To calculate the final mark:
- 40%: the average of the marks for continuous assessment, which will consist of the marks obtained during the course in the test, the case study and class participation. The average mark thus obtained will be provided at the end of the course, before the final exam.
- 60%: final exam. To pass the subject (and have the mark averaged with the continuous assessment), students must achieve a minimum mark of 5 in the final exam.
Bibliography and resources
- FERREIRO LAPATZA: “Instituciones de Derecho de Financiero”. Marcial Pons.
- PÉREZ ROYO, F.; CARRASCO GONZÁLEZ, F.: “Derecho Financiero y Tributario. Parte General”, Civitas Thomson Reuters.
- MARTÍN QUERALT, LOZANO SERRANO Y PÓVEDA BLANCO: “Derecho Tributario”. Aranzadi Thompson Reuters.
- ALONSO GONZÁLEZ, CASANELLAS CHUECOS, TOVILLAS MORÁN: “Temas prácticos de Derecho Tributario”. Atelier.