They declared the Wealth Tax unconstitutional because they considered it to be “confiscatory”



The magistrate specified that the aforementioned law is a
The magistrate specified that the aforementioned law is a “violation” of the right to property; principle of non-confiscation; principle of reasonableness and taxable capacity

The Federal Justice of Corrientes declared -in a first-instance ruling- that the Wealth Tax driven by Kirchnerism is “unconstitutional”ensuring that it is a tax measure “confiscatory”.

The “Solidarity and Extraordinary Contribution to help moderate the effects of the pandemic”driven by the bloc of the ruling party and sanctioned with force of law at the end of 2020, was questioned by the judge Gustavo of the Fresneda Heart for violating the “Guarantees and constitutional principles”.

In this way, the magistrate allowed the action promoted by Manuel Ulises Intra against Federal Public Revenue Agency (AFIP) and specified that the aforementioned law is a “violation” of the right to property; principle of non-confiscation; principle of reasonableness and taxable capacity.

Carlos Heller, president of the Budget and Finance Commission of the Chamber of Deputies
Carlos Heller, president of the Budget and Finance Commission of the Chamber of Deputies

Fresneda remarked that the Wealth Tax was implemented as a tribute, not as a contribution. And in his foundations, he analyzed that the “effective rate” on the income of the injured party “would be 118,658.78%”. Based on an accounting expert test, Intra showed that the payment of the “solidarity contribution” comfortably exceeded the income that the taxpayer would have had to pay throughout the year.

The Wealth Tax would cause a “manifests inadmissible absorption of income and assets, already taxed by Earnings and Personal Assets, exceeding the reasonable limits of imposition and confiscatory result and violation of the right to property in light of the doctrine issued by the Supreme Court of Justice of the Nation”noted in the ruling.

“A thorough examination of the records of the case leads me to the certain conviction that its application violates the constitutional guarantee of the inviolability of private property and inadmissibly affects the principle of non-confiscation, since it was proven with the expertise and supporting accounting documentation in a concrete and categorical way how disproportionate the imposed burden is, and it would inadmissibly restrict his patrimony and totally denature the actor’s property rights, “said the judge.

The Federal Justice of Corrientes declared -in a first instance ruling- that the Wealth Tax promoted by Kirchnerism is
The Federal Justice of Corrientes declared -in a first instance ruling- that the Wealth Tax promoted by Kirchnerism is “unconstitutional” (REUTERS / Agustin Marcarian / Illustration)

The “Solidarity and Extraordinary Contribution Law” was enacted at the end of 2020 to mitigate the economic effects of the COVID-19 pandemic and the consequent quarantine that was in force for several months that year. During that debate, the legislators of the ruling party insisted on repeated opportunities that those human beings with assets greater than $200 million would be charged “one time only”.

The Government planned to collect around 400 billion pesos, however, a year later -in December 2021-, the AFIP reported that the treasury collected $237.3 billion, just under 60% of what was expected, paid by more than 10,000 people. The initiative unleashed a wave of legal actions to avoid collection and caused companies, professionals and technicians to try their luck outside of Argentina.

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