Moderation of the “Solve et Repete” Continues

Pursuant to Article 9 of the Code of Administrative Litigation of said province (the “Code”), in order to discuss a Tax Authority assessment of debt in a judicial instance, the taxpayer must previously pay the capital of the assessed debt. Before the present legislative modification, the only way to comply with such requirement was through the actual payment of the claimed amount.

Since the amendment set forth by Law No. 9,874, made effective as of January 1, 2011, the taxpayer may satisfy the solve et repete requirement through:

1. the constitution of a mortgage in first degree in favor of the respective Tax Authority – by him or herself or a third party – over one or more properties located in the Province of Córdoba;
2. an endorsement granted by the Bank of the Province of Córdoba; or
3. a bond insurance policy issued by an insurance company duly authorized by the National Superintendence of Insurance to provide these kind of covers.

Hence, the Province of Córdoba unified the treatment given to provincial and municipal taxpayers, given the fact that the abovementioned alternatives were already provided by Article 120 of the Provincial Tax Code (Law No. 6,006 – amended text by Decree 270/04).

It should be outlined that the proceedings had already applied the provisions established in Article 120 of the Provincial Tax Code in order to guarantee the taxpayers’ right to equal protection (First Court of Córdoba on Contentious and Administrative Matters in re: “YPF vs. Municipality of Calchín – Full Jurisdiction”, File No. Y-03-10).

This legislative amendment follows the criteria of moderating the payment in advance requirement initiated by the Supreme Court in re “Orígenes AFJP S.A. vs. Federal Administration of Public Revenue” on November 4, 2008, in which it understood that a bond insurance policy was suitable for that purpose (for further information, see “Solve et repete”. New ruling of the Supreme Court of Justice published in Marval News No. 81, March 31, 2009).