Controversial issues regarding state liability arising from tax legislation

Abstract

The legal framework governing the State’s liability for legislative acts was developed through case law until the enactment of Laws 39 and 40/2015. This law marked a radical departure from the previous doctrine of the Supreme Court, giving rise to doubts and contradictions that intensified when the Court of Justice of the European Union (CJEU) declared it incompatible with EU law. To date, the legislation remains unamended, and the Supreme Court has failed to provide a satisfactory response to the numerous issues currently arising. In some instances, the Court has even contradicted the European Court, while in others it has upheld the lawfulness of certain requirements that may contravene the Constitution. This paper analyses these controversial issues concerning the State’s liability for legislative acts, specifically in the field of tax law, for the aforementioned reasons.