RULING OF THE SUPREME COURT ON ADMINISTRATIVE MATTERS
The Supreme Court on Administrative Matters decides on the wealth taxes that are covered by legal stability agreements
The Fourth Section of the Supreme Court on Administrative Matters annuls the thesis included in Revenue Ruling No. 98797 of December 28th 2010, according to which Law 1370 of 2009 had created a new wealth tax
In an encouraging ruling issued August 30th, 2016, by HJ Hugo Fernando Bastidas, the Supreme Court on Administrative Matters determined that the “new wealth taxes” were not new taxes, but were a continuation of the previously regulated wealth tax, so taxpayers who had stabilized the previous wealth tax were not required an extension thereof.
The High Court stated that the decisive matter was whether the structural elements of wealth taxes governed by laws 1111 of 2006 and 1370 of 2009 were common for both laws. This lead to finally concluding that, contrary to what was indicated by DIAN, Law 1370 extended the term of the wealth tax regulated by Law 1111, without creating a different tax.