The arguments of the Presidency, the Ministry of the Economy, the Tax Administration (SRI) were included in the opinion of the Constitutional Court that was positive for the draft Decree on the organic law to strengthen the family economy sent by President Guillermo Lasso within the regime of death on the cross. Fixes that have been made to this tax reform They did not pass through other sectors.

The Constitutional Court observes that the adoption of measures could not wait until the appointment of a new convocation of the Assembly, finds a connection with urgent circumstances justified by the President and does not reveal that the project is incompatible with constitutional provisions. But he makes it clear that it is not up to him to judge whether the proposed measures are the best of those available to the executive.

How much income tax will you pay if the tax reform is implemented?

He does not see that the tax that will be created for sports betting violates the right to work, equality and fair competition. Nor that the value added tax (VAT) of 12% on public performances affects the right to cultural development, equality and legal certainty. That these are the positions that reached the Court for analysis. Although he states in several parts of his opinion that he does so on a preliminary basis. This is because its prior control does not interfere with the power to exercise control after the statutory regulation.

The opinion contains five legal problems posed as questions and hypotheses and thus resolved:

Does the project contain inconsistencies in relation to the principles governing the tax regime, Article 300 of the Constitution?

Does the project conflict with Article 148 of the Constitution to address issues other than economic urgency?

Does the introduction of a single income tax for sportspersons oppose the right to work, equality and fair market competition?

Does the VAT reform on public events affect the right to cultural development, equality and legal security?

Does the classification of tax data as reserved violate the principle of transparency in tax matters?

In its assessment, the Constitutional Court reminds that its previous control power does not interfere with the power to exercise control after the law has been passed, and that it is activated by filing a public action of unconstitutionality, as well as the power of political control over the new National Assembly.

After this Friday, June 16, 2023, the judges made a decision on the tax reform proposal, it will be returned to the President of the Republic so that he can pass the corresponding legal decree with that ruling and send it for publication in the Official Register.