2) Expenses related with tutoring Families complained about not being able to deduct the cost with tutoring centres, instead of what would happen if the tutors were individuals. The Ombudsman considered that the rules in question introduced an unjustifiable discrimination by treating differently aggregates that have borne the same type of expenditure. 3) Taxation of compensation due for onerous waiver of contractual positions or other rights inherent to real estate contracts In 2016 complaints were received concerning the new item e) of article 9 of the CIRS. According to this rule, compensation due for onerous waiver of contractual positions or other rights inherent to real estate contracts became taxable. For example, this includes compensation paid by landlords to tenants who use the dwellings as permanent abode, in order to recover them. The protection of the constitutional right to a dwelling justifies the exclusion from taxation of capital gains, if the taxpayer reinvests the value of the sale of the personal and permanent abode in a dwelling for him and his household. However, this new rule does not safeguard the material situation of the taxpayer, since it does not include exclusion from tax if the taxpayer reinvests the proceeds on the lease or acquisition of a new dwelling. 4) Legal scheme of reporting income from previous years (retroactive) The Ombudsman pointed out, once again, the need to introduce a legal scheme that allows the reporting of income from previous years.(64) This suggestion had been previously addressed not only to the State Secretary for Tax Affairs of past governments, as well as to the President of the Commission for the IRS Reform(65). • Case Q-6794/12 Entity addressed: State Secretary for Tax Affairs Date: 2016.08.12 Subject: Tax. Real Estate Taxation. Article 28 of the General Stamp Duty Chart (TGIS). Exemption of Municipal Real Estate Tax (IMI) for low-tax value real estate, owned by low-income taxpayers Sequence: This State body was informed that the draft State budget for 2017 included a provision revoking article 28 of the TGIS (64)  See Recommendation No. 7/B/2008 available at: http://www.provedor-jus.pt/site/public/archive/doc/Rec7B08.pdf (65)  See letter available at: http://www.provedorjus.pt/site/public/archive/doc/Oficio_Comissao_Reforma_IRS.pdf 118 |