Bloomberg Law
March 15, 2023, 6:02 PM

New Taxes Can Apply Retroactively, Spanish Court Rules

Sam Edwards
Sam Edwards
Freelance Correspondent

New taxes can apply to a company’s activity in the entirety of the tax year in which they were approved, a Spanish court announced on Tuesday.

In a February 27 decision that could impact the ongoing legal battle over a controversial new windfall profit tax, Spain’s Supreme Court set limits on constitutional safeguards against retroactive taxes.

The new levy was introduced at the end of 2022 and applies to profits and sales of banks and utilities throughout that year. Several companies and associations representing the energy sector have filed motions against the tax in court in recent weeks.

The Supreme ...