AENIB considers the ruling on the appeal against the refit tax "partially upheld"

AENIB has studied in detail the recent ruling of the High Court of Justice of the Balearic Islands on the administrative appeal it filed against the so-called refit tax (tazaso). The 1.5% tax on the total invoicing of maintenance and repair works carried out in the ports of general interest of the Balearic Islands is imposed on the companies by the Balearic Port Authority (APB).

Sandra Mayrata, AENIB's legal advisor, recalls that "When the decision was taken to challenge the statement of conditions, we knew that we were facing a very complex situation, as 80% of appeals against the Administration are lost.  However, as a business sector we could not remain idle in a situation that we did not consider fair. We took the brave decision to do what we considered the most correct for an employer  association of the sector, in defence of the interests of the companies we represent", she explains.

That said, she describes the court decision as "partially upheld, and even if it does not repeal the statement of conditions that we had challenged, considering them to be in accordance with the Ports Act, it does annul several articles, which will allow us to claim on a case-by-case basis. We have been partially upheld in three of the four petitions we made, although not in the main one", she points out.

"The partial approval of the appeal that we presented to the High Court does justice to the nautical companies that already had authorisation to work in the ports of general interest of the Balearic Islands before 2020, when the new statement of conditions with the increased tax rate were approved ," she adds. The ruling establishes that "once an authorisation has been granted in accordance with certain conditions and during the validity of this authorisation, it is not possible to alter these conditions". In Mayrata's opinion, "the earlier authorisations must be respected as they were given, with the amount and duration of the tax established at the beginning. This is what was not foreseen in the new regulations".

AENIB also considers that the ruling opens the door to some companies being able to claim administrative refunds. "The licences or authorisations to work within the APB with a fixed fee must be reviewed. We have to look at the duration and whether they would be in force or not".

Although the ruling is from the end of last February, AENIB considered it necessary to analyze the complex resolution before giving a public statement. This work has been carried out by the AENIB legal team to protect the satisfactory points of the ruling for the interests of the sector.