Updated on Monday, 30 August 2021 – 17:25
The City Council highlights that it is the first time that a court has pronounced in this way
The contentious administrative court number 8 de Barcelona has endorsed that the Barcelona City Council collects the Real Estate Tax (IBI) from a congregation of the Catholic Church that rented a building of its property to a commercial company, reports the consistory this Monday in a statement.
According to the City Council, this is the first time that justice has ruled in favor of the collection of municipal taxes from the Church for the fact that it receives financial returns from its patrimony. The Institut Municipal d’Hisenda notified the congregation that had to pay 22,368 euros as IBI of 2019 corresponding to the property of its ownership from which it receives income derived from the rent, informs Europa Press.
The congregation filed an administrative appeal against this liquidation, which was dismissed on July 5 by the Councilor for Commerce, Markets, Consumption, Internal Regime and Finance of the City Council, which allowed the religious entity to appeal to the courts, which issued this sentence on July 22. of July.
The consistory defends that the congregation is registered in the Economic Activities Tax (IAE) for being exercising an activity for which it receives an economic return and, for this reason, it considers that it must pay the IBI. According to the City Council, the religious congregation alleged that, by allocating this place to teaching activity, it was included in the reasons for exemption from IBI included in the law that regulates the tax regime of non-profit entities and in the Agreement between Spain and Spain. the Holy See of 1979.
However, the court that resolved the case considers that this is not correct because who exercises the teaching activity is a mercantile company,While what the congregation does is rent the space, because in its opinion, the congregation is carrying out an economic and not educational activity, and consequently it must pay the local IBI.
Thus, the consistory understands that, if it were exempt from the payment of the IBI, the economic activity of rental of real estate carried out by a non-commercial entity could suppose unfair competition regarding commercial companies, “which in any case are subject to the payment of tax.” “This would be illegal State aid, prohibited by European Union law, as recognized by the Court of Justice of the European Union in several occasions “, concludes the consistory.
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