THE NEW LAW DRAFT OF DAC 6 ABOUT TAX EVASION BILL, ANOTHER SIGN OF LEGAL INCOMPETENCE

It is said that the extremes are so equal that the line that separates them is very fine. The new law about DAC 6 gives us that clear vision about how comes to be the pursuit of the state.

Disguised as a draft law against international companies, that capitalism based on the oppression of workers, the government has this May launched a new law that will go against anyone middle-class, against small and medium-sized enterprises and against the self-employed, above the mere justification for persecution of the richest.

The draft law formulated presents legal loopholes that will protect the lawful or unlawful activities of those who can pay good international experts, but which will put in the Ministry of Finance’s crosshairs the entire SME, autonomous or middle-class professional sector who pay their taxes or who is responsible for drafting them.

Remembering times of Nazi Germany, the Gestapo, or state police had only 400 professionals, but its omnipresence lay in the rules generated by the state that forced every German to be a confidant under the capital penalty of the state machinery. This led to the system having more than 4 million permanent confidants in its ranks, whether the information being provided was true, or false. The state preferred to have a barrage of false information in order to obtain truthful information among all that.

The new law is based on the same, and they have evaluated it with the same criteria. The barrage of information they will receive will generate problems of judgment, but eventually they will be able to locate potential illicit or aggressive operations against the Spanish estate.

But within that new law, drafted with such ambiguity that it allows the government any action against any citizen or company, far from violating or weakening large companies. The law requiring all tax experts to report aggressive tax returns practices, even if not illegal, does not identify or define what are called “aggressive practices”, leaving it to future tax inspectors to do so. In addition, if aggressive practices are legal, they can also be punishable, something inconceivable, that is, if you drive correctly but the traffic inspector considers that even within the norm notices some aspect of aggression in your face or in your vehicle, the driver may not, but the one who is sitting next to him, if he has not reported it , can be penalized. There is no legal protection in such a punitive system, so that the law itself, without a clear description of each element defined in that law, has no basis for being implemented.

All this, based on the European agreement to prosecute tax evasions, but in each country, the law has been identified differently, and even more so, the law only covers the countries of the European Union, but only the countries of the Eurozone and that do not cover tax havens such as Portugal, Holland, France, Denmark, …, which do not indicate it. This leads to a second element, if tax advisory firms are outside the European area, they cannot be condemned as they are outside the provisions of the European Union, and to provisions which are not protected internationally given their ambiguity.

With this, we return to the basis of the objective of the law and its inefficiency. If the objective were to prosecute the illegal or creative practices of multinational companies, it is beyond the state’s control at the time when companies of this type work with groups outside the European Union itself. Instead, they put ordinary homelessness in the face of total impunity for farm inspectors in interpreting a law that has not been clearly defined.

In fact, “aggressive practices” identifies absolutely nothing. A practice covered by a national and international law cannot be defined as an aggressive practice no more than it benefits the company to the state. Rather, we should evaluate the capacity or incompetence of law enforcement and not try to cover the sun with one finger.

The problem is that those same incompetents will be responsible for defining what is an aggressive or non-aggressive practice, and obviously the decision will be fully uttered.

There is a legal principle of every rule of law, which is that the law is to be enforced. If the law is not properly established, it is the obligation of the state to correct it to comply with the standards or objectives of the rule of law, but creating ambiguous laws that remain subjective to which it has to apply them takes us to authoritarian states and takes us away from the rule of law.

This new law is one of those many laws that in recently have seen the light and that really forsaken is the citizen and not the rich as was pretended. Moreover, it only affects European companies, but not all Asian, American or other companies that are usually the companies that most defraud the receiving states. This law will give wings to all foreign companies and even international advisers leaving  totally sunk the national tax advisory market and small and medium-sized enterprises, as well as Spanish workers. Another law that seeks the relaunch of the Spanish economy!