The Superior Court of Justice of Madrid gives the reason to an heiress to cancel the liquidation of the SUCCESSION AND DONATION TAX in which 228,743.89 euros were charged as domestic trousseau, despite the fact that the inheritance was formed only by rustic farms, money and values, that is, there was no home. Therefore, Justice orders the Treasury to reopen the procedure to determine whether it is appropriate to exclude this calculation in the tax base of the tax.
After the death of Jose Pedro, this woman with other relatives received an inheritance. The inheritance was composed of money, transferable values, economic rights and rustic farms without building, but did not include any housing that could house domestic ajuar, that is, furniture. Thus, in 2016 they decided to present the self -assessment of the Inheritance Tax in the Community of Madrid where the amount to be paid amounted to 75,613.93 euros.
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The Community Tax Agency decided to review and established a debt of 39,850.02 euros, after ex officio applying 3% as a domestic trousseau, which meant loading 228,743.89 additional euros on the taxable basis.
In this sense, the taxpayer decided to request the cancellation, since that 3% could not be applied as a domestic trousseau, since there was no housing that could have furniture. Despite this, the Technical General Secretariat of the Ministry of Finance inadmitted it and said that the action lacked “manifestly of foundation” although annulled the sanction. So and with no other way, the heiress decided to go to court.
There were no furniture to apply a greater tax in the inheritance
In the Superior Court of Justice of Madrid, this explained that, in accordance with the jurisprudence of the Supreme Court of March 10, 2020 (Cassation appeal 4521/2017), the domestic trousseau comprises only personal or domestic use of personal or domestic use of the deceased, but not real estate, money or values. In addition, he pointed out that the taxpayer had invoked the violation of the right to equality and legal certainty, which prevented his appeal from qualifying as “manifestly” foundation.
Therefore, the TSJ of Madrid gave the reason to the heiress and annulment the resolution of the Treasury that had inadmitted the review and ordered the administration to process the application for nullity of full right submitted by the taxpayer. Of course, he clarified that he could not rule on the bottom of the matter (whether or not to exclude the domestic trousseau), because that competence corresponds to the Ministry of Finance.
The Court gives the reason to the heiress
In this judgment, the key is that the inheritance did not include housing or goods that can constitute domestic trousseau, but only rustic farms without building, money and values. In spite of this, the Administration automatically applied the 3% provided for in article 15 of the Law on Inheritance and Donations Tax (LISD), charging 228,743.89 euros as a trousseau.
The Superior Court of Justice of Madrid understood that the application for nullity filed by the taxpayer could not be rejected flat, since it was supported by the doctrine of the Supreme Court (STS of March 10, 2020, Rec. 4521/2017), which interprets that the domestic trousseau only applies to personal property of personal use or affections to the habitual housing of the deceased, excluding real estate, money and values.
Therefore, the TSJ partially gave the reason, considering that there were sufficient legal foundations to reopen the requested review. With this, it forces the Treasury to treat the file again and pronounce on the fund, although it will be the Ministry who must resolve whether or not to exclude the trousseau in this case.