Very interesting sentenced published by the Constitutional Court of Spain and enforced very recently by the Madrid High Court.
What happens if at the moment of the accrual of the tax (inheritance, transmissions, income tax…) I belong to a large family, but I don’t possess the title that entitles me to the tax benefits and allowances foreseen by the law, but I have it afterwards.
The case submitted for the judgement of the Constitutional Court was the case of a large family (with no formal title of acknowledgement) that pretended to pay the taxes for the acquisition of their habitual dwelling to the reduced rates of large families. The Madrid tax authorities didn´t deny they were a large family as it was proved by the family book, but the official title of “large family” wasn´t issued at the moment of the accrual of the tax, but later on.
The Madrid tax authorities denied the reduced tax on the acquisition of the dwelling for that reason.
The Constitutional Court makes an interpretation less formalist and squeamish and judges that the family has to have the official title of “large family” in order to be entitled to the benefits linked to that condition, but if by other proofs, like the family book, the family is a real large family by the time of the accrual of the tax, the benefits have to be enforced backwards.
The case analyzed by the Constitutional Court is related to the tax over real estate transmissions, but we humbly think that it can be also enforced to the Income Tax Revenues where the policy of the State Tax Agency is to acknowledge the 100 € benefit for large family only from the moment the official title is issued on, and not backwards. Maybe with this coverage it would be interesting to claim back those 100 € per month denied just because, being a large family, it lacked of the official title at the end of each month.