ERC presents the personal income tax bill without the PSOE and complains: "They don't want to comply with the agreement."

BarcelonaLast July, Esquerra (Republic of Catalonia) wanted to present a bill in Congress that would give legal protection to the Catalan Tax Agency (ATC) so it could collect personal income tax. This was an essential step to advance compliance with the investiture agreement on the new one-time financing. Now, the talks with the socialists have stalled. And the Republicans decided to shelve the proposal while waiting for the parties to come closer together. A month later, everything remains as it was, but Oriol Junqueras's party has decided to make a move and present its proposal alone. A measure of pressure, but also a gesture that shows that the dialogue with the PSOE is not going the way Esquerra would like. "The PSOE must decide whether or not to comply with the agreements it has reached. If we present it [the bill] alone, it is because there is no agreement, although we reached that agreement. The Socialist Party and Salvador Illa accepted this agreement, but today they don't want to comply with it," Oriol Junqueras lamented in a press conference.

The proposal includes the modification of three state laws, including the Lofca (organic law on the financing of the autonomous communities), so that Catalonia expands its powers over tax collection and includes personal income tax. But not only Catalonia; the reform includes allowing any community to do the same. In fact, in recent months, and in the face of criticism from men From the PP and also from the PSOE, the Republicans have been repeating the thesis that any autonomous community that so desires can request that power. In this sense, the law modifies Article 19 of the Lofca (Spanish Socialist Workers' Association) to include personal income tax (IRPF) and that it is the ATC (Association of Taxes) that collects it "when the powers have been delegated to the respective autonomous community," the Republicans write in the bill proposal.

The pact signed for Salvador Illa's investiture already stipulated in writing that for the ATC (Association of Taxes) to be able to collect all taxes, it was necessary to modify at least three state laws: the Lofca (Spanish Socialist Workers' Association), the law that regulates the financing system of the autonomous communities under the common regime (22/2009), and the 0 law. Three changes are included in the bill that Oriol Junqueras and the ERC spokesperson in Congress, Gabriel Rufián, presented at a press conference on Monday, and that the party will register in Congress this week. Junqueras and Rufián have appeared together for the first time after the disagreements between the two over the left-wing and pro-independence front that was proposed by the ERC spokesperson in Congress.

In this way, the meaning of the change that will be introduced in the Lofca will also be replicated in Law 22/2009, so that the State delegates the powers to collect personal income tax to the autonomous communities, modifying its article 54. In addition, an additional provision is added to make this sanctioning delegation and the review of the acts "of the tax effective. It is also established that this delegation will be accompanied by "coordination" between the state and autonomous administrations, which "will share the information that is relevant."

Six months to transfer human and material resources

An additional provision will also be incorporated into the tax transfer law requiring an agreement to be reached within six months to make this delegation of powers effective. "Within six months of the approval of this law, the Joint State-Generalitat Transfer Commission will agree on the transfer of the personnel, material, and budgetary resources required to ensure the delegation is effective in its various phases," it states. The master plan presented by the Government To specify how the Catalan Treasury would be deployed, it is anticipated that the ATC will be able to assist citizens in the 2027 income tax campaign and that in 2028 (two years later than planned in the investiture agreement) it will participate in certain management functions of this tax. It would not be until 2029 that the ATC could exercise inspection and collection powers, once they have been delegated to it, as envisaged by Esquerra.

In addition, a provision will also be introduced into Esquerra's bill that should regulate the transitional period for the Catalan Tax Agency to assume the collection of personal income tax. This will establish, among other things, that while the Catalan Treasury has not developed its own IT infrastructure, it will share the software with the State Agency. With all these changes, Catalonia would increase its collection capacity, but would remain within the common system.

The disagreements with the PSOE

The proposal that Esquerra will register this Monday does not have the support of the PSOE. The Republican Party points directly to the Minister of Finance, María Jesús Montero, as responsible for the disagreement. However, sources from the Ministry of Finance assure ARA that they are willing to comply with the agreement, but that it must be a gradual process, and they point out that right now the ATC does not have the capacity to collect taxes due to a lack of personnel. "The PSOE complies with the agreements. We will read the bill and when the time comes for the vote, we will see if it goes ahead," said PSOE spokesperson Montse Mínguez this Monday.

Until now, the Government has been taking steps to scale the Catalan Tax Agency so that it can go from collecting €5 billion in taxes to €30 billion. A few days ago, The executive council approved the decree This law empowered the agency, among other things, to expedite staff hiring and also created two new bodies: the Corps of Tax Agents and the Higher Corps of Tax Information Technology. However, Esquerra complains that these steps are futile if the legal framework that empowers the ATC to collect taxes is not simultaneously implemented. "Any proposal the Government makes to collect taxes is of little use if there is no legal authority to do so," Junqueras warned.

The budgets

Whether this law will be passed or not depends on the support the PSOE can give, but also on the votes of other groups such as Junts. According to the Republicans, this issue has been discussed with Carles Puigdemont's party, but also with other groups such as Compromís and the BNG, so that they will agree to endorse the law. "Today, an act of courage is announced to take it on at a political moment in which cowardice is rewarded. ERC takes a step forward. The alternative would be to give nothing," Rufián argued, who also asked what Junts will do about this issue.

What happens if the disagreement between the Socialists and the Republicans continues? ERC has insisted in recent months that, without progress on financing, it will not sit down to negotiate a budget. "As long as the financing model and the tax collection model are not resolved, there will be no budget negotiations," Junqueras reiterated. One of those steps is precisely this law, Junqueras admitted last Monday. But it's not enough, the Republican leader asserted, also demanding steps to specify the financing model, such as the State providing the resources to implement this system reform.