The Ministry of Justice is evaluating different observations and is open to studying modifications in the Draft Law of Procedural Efficiency Measures of the Public Justice Service after this Thursday the National Association of Lawyers for Victims of Accidents and Civil Liability (ANAVA-RC) will alert that the second final provision of that standard includes a change in personal income tax that would have a serious impact on those injured for this type of accident when taxing compensation.
Sources from the department led by Minister Pilar Llop indicate to Europa Press that the Ministry and the Government are already studying the observations made in this regard, they recall that victims are always supported, and they warn that this draft is currently in the pre-legislative phase. They indicate that once it reaches the Courts, the maximum agreement and consensus will be sought with the rest of the political forces to improve the quality of life of citizens, and in this case of the relatives of the victims of traffic accidents. “For us the repair is necessary and obligatory and we are working on that”, warn those same sources.
They also recall that at the moment the Preliminary Draft for procedural efficiency is being analyzed by the Council of State, and that all sectors of civil society affected by the reform are still being heard. In this sense, they point out that the question will be carefully studied before the concern of accident victims as this is one of the priority issues established by the minister.
This Thursday the National Association of Lawyers for Victims of Accidents and Civil Liability (ANAVA-RC) warned that the Government intended “collect taxes with indemnities” of the victims of road accidents. This was warned by the entity, which reported that it had already sent two separate letters of protest to the technical secretary general of the Ministry of Justice, Jacobo Fernández Álvarez, and the general director of Insurance, Sergio Álvarez Camiña, expressing their “most radical opposition” to a Proposal of legal reform referred to the Personal Income Tax (IRPF).
“Irreparable damage to victims”
ANAVA-RC has requested one urgent meeting with representatives of the Ministry of Justice in which the rest of the accident victims ‘associations and victims’ lawyers are also present at the national level. “Its implementation would cause irreparable damage to the victims of traffic accidents and especially to the seriously injured”, has assured the association that includes more than 200 law firms of victims from all over Spain and with greater representation in this sector .
In a statement, collected by Europa Press, ANAVA-RC transferred its “concern” about the drafting of the second final provision of the preliminary draft of the Law on Procedural Efficiency Measures of the Public Justice Service, signed by the previous head of the Ministry of Justice, Juan Carlos Campo, and approved by the Council of Ministers on December 15, 2020.
As detailed by the association, in the aforementioned provision, “in a hidden way, an important” modification of Law 35/2006 on Personal Income Tax is carried out, “which does not take into consideration the serious economic impact it would have on these victims, for those injured in the event of death and even for insurance companies “.
“It does not take into account that harmed or victims in traffic accidents, unfortunately, they suffer personal and patrimonial damages at the moment in which they suffer a traffic accident due to the fault of a third party, and what the compensation is intended is precisely to compensate this decrease in patrimonial with the full restitution of the damages and damages suffered, leaving the victim, to the extent of the possibilities of the current norm (Art. 33 of Law 35/2015, of September 22), in the same position that he was before having the accident “, pointed out Manuel Castellanos, president of ANAVA-RC.
They are not an increase in equity
In this sense, Castellanos highlighted that, from a fiscal point of view, “compensation have never been considered as an increase in equity if not a compensation for the decreases suffered as a result of the accident “.
Likewise, the association of lawyers considers that this reform proposal “incurs in a serious confusion” of the legal terminology of the Law, which by means of an Additional Provision, intends to reform, therefore “it must be clear that the tax exemption must apply to all damages, both extra-pecuniary (moral damages) and patrimonial “. “These most vulnerable citizens are harmed due to the fault or negligence of a third party that causes bodily harm to them that must be compensated in its entirety and would be totally affected in the event that the aforementioned Provision is approved, “he added.
On the other hand, ANAVA-RC explained that the draft law introduces changes in the processing of friendly out-of-court agreements between insurers and the injured parties that “would increase their costs, since it introduces the intervention of a figure called a ‘neutral third party ‘, without any definition of its function or role, and requires’ public deed’ when payment is made by an insurance company “.
Finally, it warned that when paying the compensation obtained in friendly agreements “what would generate is a runaway increase in litigation, as citizens should wait for the court ruling so that their compensation is exempt from taxation, charging more, if possible, to the already overwhelmed administration of Justice.”