Alarma Lawyers warn that the Government could tax compensation to victims of traffic accidents
The Government assures that the draft
Law on Procedural Efficiency Measures of the Public Service of Justice
"does not modify the tax treatment of compensation received by victims of traffic accidents, which will continue to be exempt to the same extent and with the same conditions recognized by current regulations".
This has been indicated by the Executive in response to a written question from the Vox Parliamentary Group, which has collected
the complaint raised in January by the National Association of Lawyers for Victims of Accidents and Civil Liability
(ANAVA-RC).
The entity then warned that the Second Final Provision of that rule includes a modification in the
Personal Income Tax (IRPF)
, which would have a serious impact on those affected by this type of accident by
taxing compensation
.
In the parliamentary question, collected by Europa Press, the Vox party wanted to know if the Government of Pedro Sánchez is going to send Parliament a draft law that, in its opinion,
"would mean extra expense for the indemnified person, risk of taxation and also a possible saturation of the courts"
.
The Executive has clarified that the modification included in the Provision
"in no case should be interpreted in the sense that, now, compensation for traffic accidents agreed outside the judicial system will require the 'intervention of a neutral third party and elevate the agreement to public deed'"
.
"As has been said previously, the taxation of compensation for traffic accidents remains the same as until now," he settled.
Last January,
ANAVA-RC warned that the Government intended to "collect taxes with the compensation"
of the victims of road accidents.
This was warned by the entity, which reported that it had already sent two separate protest letters to the technical secretary general of the Ministry of Justice, Jacobo Fernández, and to the general director of Insurance, Sergio Álvarez, expressing its "most radical opposition" to a proposal of legal reform referred to personal income tax.
irreparable damage
"Its implementation would cause irreparable damage to the victims of traffic accidents and, very especially, to those seriously injured," assured the ANAVA-RC association, which includes more than
200 law firms for victims throughout Spain
and with greater representativeness in this sector.
In a statement, ANAVA-RC conveyed its "concern" about the drafting of the Second Final Provision of the draft Law on Procedural Efficiency Measures of the Public Service of Justice, signed by the former head of the Ministry of Justice,
Juan Carlos Campo, and approved by the Council of Ministers on December 15, 2020
.
As detailed by the association, in the aforementioned provision,
"in a hidden way, an important" modification of Law 35/2006 on Personal Income Tax is made
, "which does not take into account the serious economic impact that it would have on these victims, for those injured in the event of death and even for insurers".
"
It does not take into account that those injured or victims in traffic accidents
, unfortunately, suffer personal and property damage at the time they suffer a traffic accident due to the fault of a third party, and what the compensation seeks is precisely to compensate that decrease in assets with the full restitution of the damages suffered, leaving the victim, to the extent of the possibilities of the current regulation (Art. 33 of Law 35/2015, of September 22), in the same position as was before the accident", pointed out Manuel Castellanos, president of ANAVA-RC.
On the other hand, ANAVA-RC explained that
the draft law introduces changes in the processing of out-of-court friendly agreements between insurers and the injured
parties that "would increase their costs, since it introduces the intervention of a figure called a 'third party neutral', without any definition of its function or mission, and requires a 'public deed' when the payment is made by an insurance company".
It also warned that by taxing the compensation obtained in friendly settlements, "what it would generate is a runaway increase in litigation, since citizens would
have to wait for the court ruling
so that their compensation is exempt from taxation, charging more, if possible, to the already overwhelmed administration of Justice".
After the association's complaint, the Ministry of Justice has already assured that it is evaluating different observations and is open to studying modifications.
Sources from the department led by Minister Pilar Llop told Europa Press that from
the Ministry and the Government they were already studying the observations made in this regard
, they recalled that the victims are always supported and warned that the draft is in the pre-legislative phase.
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