The Catalan Public Tax Administration Gets Underway

4 April 2008

The Public Tax Administration of Catalonia (ATC) commenced its activities on January 1, transforming itself into the first autonomous institution capable of managing taxes and, in a similar manner to the State Tax Agency, holding its own legal status and functional autonomy.

Among the powers held by this Catalan administration is the management, liquidation, inspection and collection of taxes of the ´Generalitat de Catalunya´ (regional government of Catalonia). In addition it is also capable of carrying out the same functions in relation to the taxes wholly assigned to Catalonia (for example, capital gains tax, inheritance tax).

Irrespective of this, the reform of the Catalan Autonomous State carried out in 2006, which anticipated the creation of the ATC, also intended to create a Tax Consortium between the autonomous Government and the state at the end of this year. Its functions would be the management, collection, liquidation and inspection of the rest of the taxes partially assigned to the State – the two having the highest economic relevance being Personal Income Tax and VAT – collected in Catalonia. However, it must be taken into account that this allocation of duties to the autonomous entity is not something new, given that they were previously carried out by the General Tax Office which depended on the Catalan Department of Economy and Finance. The difference lies in the creation and implementation of this new body, the ATC.

The Catalan autonomous Government anticipates that it will manage a volume of takings of approximately 5,100 million Euros in 2008.

For more information please consult the homepage of the Public Tax Administration of Catalonia: www.atc.cat/ or contact Uri Geigle: [email protected]