The Supreme Court of Justice of the Nation declared the unconstitutionality of legal norms of Córdoba that tax the gross income tax of companies with a productive establishment in another province with a higher rate, transcended in Courts.
The decision was made by the highest court in response to the lawsuit filed by Nobleza Piccardo SAICyF because the provincial State demanded a 4% rate on gross income for two fiscal periods of 2015, while the rate set for local companies was 0 ,5%.
The firm that manufactures cigarettes and tobacco products, with a manufacturing plant in the Buenos Aires town of Pilar, questioned the articles 22 of local laws 10,250 and 10,324 -which provide for the differential rate- for establishing an “internal customs” and violating constitutional guarantees, such as the right to equality.
When answering the demand, the provincial authorities stated that the tax measure should be understood as a promotion policy framed within the provincial tax authority to promote local industry and stimulate development.
“In the specific case, the application of tax laws 10,250 and 10,324” By taxing the activity of Nobleza Piccardo with a higher rate, “it hinders the development of trade between the provinces,” said the Court, which acted with original jurisdiction, since it was a claim against a provincial state.
In the case “it is evident the discrimination generated by the provincial legislation based on the place of residence of the productive establishment of the taxpayer, insofar as it violates the principle of equality” and “establishing a kind of “internal customs” prohibited by the National Constitution” he added.
The Court concluded that foreign products are thus harmed “for the benefit of those manufactured in its territory, an extreme that leads to the declaration of invalidity of the tax claim.”
The unanimous ruling, based on precedents from the highest court, was signed by the president of the Court, Horacio Rosatti and the ministers Carlos Rosenkrantz, Juan Carlos Maqueda and Ricardo Lorenzetti.
