A case on incomes liable to the personal income tax has been initiated
The First Panel of the Constitutional Court has initiated a case “On Compliance of Section 9 Paragraph 1 Indent 19 (c) of the Law “On Personal Income Tax” (Wording of 22 November 2001) with Article 91 of the Satversme of the Republic of Latvia”.
Article 91 of the Satversme guarantees equality before the court.
The contested norm provides that income from the alienation of personal property shall not be included in the annual taxable income and the tax shall not be imposed upon, except income from sale of immovable property that was the property of a particular person for less than 12 months.
The applicants, the Administrative Regional Court indicates that the contested norm is being applied in a way that income that is not liable to the personal income tax even if a person sells several immovable properties that was the property of him or her for more than 12 months. According to the applicant, such regulatory framework, however, permits breach of the principle of equality in respect to persons who sell immovable property systematically with the purpose to gain profit, these persons having registered their economic activities and paying taxes, or sell movable property.
The Saeima was asked to provide, before 20 September 2011, a reply on the facts of the case and legal substantiation thereof. The term of preparation of the case is 20 December 2011.
Linked case: 2011-15-01