Wine Law

PROFESSIONAL ORGANISATION OF ARGENTINE VITICULTURE 409 As we can see, even though the will of the private representatives prevails, with the full range of interests included in the three basic objectives of the Strategic Plan being represented, such criteria are coordinated with that of the public entities providing technical assistance (INTA and INV), in conjunction with the political entities (Ministries of Economy and Production of the Provinces). COVIAR is legal instrument that provides the adequate tools (competence of the administrative entity) for the purposes established by the same law, generating a background plan, coordination that seeks to optimise the actions of all existing public and private organisations through networking to bring together the needs that express the private sector’s initiative. VI.4. Financial Resources – Penalties for Non-Compliance With the power to administer obligatory contributions given by all the viticulture establishments or grape processors (fresh or dried), COVIAR can tax: a) litres of elaborated wine, sulfated must or virgin must without the concentration process; b) litres of wine fractioned without variety indication, except the concentrated must; c) litres of wine fractioned with variety indication, except the concentrated must; d) litres of concentrated must dispatched to internal consumption or exported; and e) kilograms of fresh grapes entered to the establishment (Art. 10). Those economic contributions’ parafiscal nature is categorised as a special contribution inside the tax system; it is characterised in that it was established as obligatory. They are special taxes established in favour of the public or semipublic entities, economic or social to insure their financial autonomy 25 . The administration of such contributions in hands of the autonomous and decentralised entity, different from the principal administration, constitutes one of the essential elements of the parafiscal characteristic. It is the best way to fulfil the legislator’s expectations and, in that way, satisfy the collective interest. Accordingly, the legal agenda has been followed: non-confiscation, equity, contributive capacity and more general taxing principals. If the obligatory contributions of Law 25.849 charge the production of small producers – which elaborate through third parties – was a question that was debated and answered at the Federal Charter of Mendoza: “(…) such contribution is not applicable to them, so the associations involved have no legal interest on the declaration of unconstitutionality they pretend (…) for reasons of non-justiciable economic policies, art. 10, 23 Giuliani Fonrouge, Derecho Financiero , vol II, p. 892, Ed. La Ley, Bs As, 2004.