Andorra Court Backs Government in Parish Transfer Payment Dispute

Andorra's Batllia court has ruled in favour of the government in a long-running dispute with the seven parishes over 2017 transfer payments based on 2016 tax revenues. The administrative section dismissed the parishes' lawsuit, filed on 24 February 2022, which demanded €7.57 million plus a subsidiary claim of just over €1 million for regularisation.

The court upheld the government's position that transfers under article 3.1 of the 1993 Law on Transfers to Parishes must use 18% of tax revenues actually collected—and adjusted, liquidated, and accounted for in the prior year's budget. It rejected the parishes' interpretation that "liquidated... effectively realised" revenues meant budgeted amounts, which they argued would better protect their interests by including post-liquidation collections.

Judges reinforced their stance by citing article 14.2 of the General Public Finance Law, which incorporates rights collected up to 31 January of the following year into the budget. This mechanism ensures later collections contribute to subsequent transfers, avoiding what the court called procedural flaws under the parishes' view.

Government spokesperson Guillem Casal welcomed the first-instance ruling at a press conference following the Council of Ministers meeting, stating it "confirms the arguments of the government." He urged caution, as parishes can appeal to the Administrative Chamber of the Superior Court of Justice, and emphasised there was "no intention of going against the parishes," with each side defending competencies "with the utmost institutional cordiality."

Parish leaders plan to discuss an appeal at their upcoming consuls' meeting next week. The government maintains the €62.1 million already paid was correct.

The conflict dates to 2017, when the General Council unfroze transfers—frozen at €54.6 million for three years—prompting recalculation. In March 2021, parishes cited a legal opinion claiming over €8.6 million was owed. They filed an administrative appeal in late June 2021, rejected by the government in August 2021 and confirmed in January 2022, leading to the court case. The 1993 law governed these final transfers before its 2017 amendment.