Legal Attribution of Local Governments and the Apparent Conflict with the Constitutional Principles for Tax Exemptions

Abstract

The present work explores the constitutional limits of the municipal autonomy from the perspective of Tax Law, bringing to the present study a case in which it will be determined the legality of the decision of the Municipal Council of Trujillo in terms of exempting its permanent workers from tax payments (predial tax and municipal rates) for having signed a collective agreement with its workers union in such terms. This fact has generated such controversy and uncertainty on the juridical treatment to the board of the municipal (aldermen, civil servants, workers) as in Trujillo citizens about its legality and impact in the tax collection of the municipality. This article contains a review of the national doctrine, as well as the judgments sent by the Constitutional Court on the constitutional limits in tax subject and an attempt to arrive at a concrete conclusion (like response) to the raised problem.