ICIR: Supreme Court of Justice declared this tax unconstitutional

By Judgment 17/2013 dated February 15, 2013 the Supreme Court of Justice (SCJ), by a  majority, declared unconstitutional sections 1 and 2 of Act 18.876 which created the Tax against the Concentration of Rural Properties (ICIR).

With respect to the Court foundations in order to approve the complaint, it states that the ICIR is not an additional of the Tax over Property applied by the Local Governments (due to the taxable event is independent, and also the structure and evaluation of the taxpaying capacity are different), constitutes a case of tax superposition, and finally that the tax affects the financial autonomy of the Local Governments.

The Court rejected the unconstitutionality of sections 10 and 11 due to a formal reason - the absence of legal standing of the plaintiff -. The Court explained that only the Local Governments are entitled to claim in order to preserve the local financial autonomy.

The judgment contains the discord of Magistrate Dr. Pérez Manrique who defended the constitutionality of the ICIR with a different interpretation of the texts (interpretation according to the Constitution).