The TSJA does not consider the maternity benefit exempt from the IRPF

The TSJA does not consider the maternity benefit exempt from the IRPF

The TSJA opposes in a ruling the TSJM when it rejects to exempt maternity allowances in the income tax by referring to the Spanish Tax Agency’s thesis.

The High Court of Justice of Andalusia (TSJA) enacted a ruling last October aligning itself with the Tax Agency‘s thesis which rejects the exemption from the income tax to maternity allowances by considering them as a labor income.

This decision is contrary to the recent ruling enacted by the High Court of Justice of the Community of Madrid (TSJM). None of the rulings create jurisprudence because they refer to the judged case and don’t oblige the Tax Agency to not to keep collecting the IRPF from those allowances.

In this case, the TSJA rejects a taxpayer’s petition of being exempted from the IRPF for her maternity allowance which was granted in the year 2011 worth 11.706 euros and it is justifying its decision on the General Tax Law, specifically its Article 14 which does not allow to make analogies in order to expand the exemptions’ effects.

However, claims to the Treasury have multiplied throughout Spain in spite of the difficulty of the process and that before claiming in court would have to exhaust the administrative route, creating various platforms to advise those affected.

In addition, it is likely that other higher autonomous courts will be pronounced on this issue, which will have to be fully reported by the Supreme Court. The limited effect of these judgments, paradoxically, is not an obstacle to claiming the Tax Agency but rather a stimulus since this disparity of criteria is so clear among the courts for the same issue (the interpretation of Article 7h of Law 35 / 2006 of the IRPF) could be grounds for lodging an appeal.

This type of appeal is interposed when it is sought to annul the effect of a judgment by a failure in the application or procedure of a law. Therefore, if there was no agreement in the interpretation of this article taxpayers could pay the IRPF or not for maternity benefits received depending on the region in which they lived, suffering a comparative injury.

Equity between men and women are also at stake in the taxation field and the legislator should not forget this tax equity which serves to increase the democratic distinction of our society and to the development of civil rights.s

At Del Canto Chambers we are specialized in tax and trade law, especially in complaints to the Spanish Tax Agency. We can be contacted from and from the platform

Del Canto Chambers’ Editorial Board

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