The document outlines plans for managing the transition to an independent Catalan state in the first months, including establishing mechanisms to collect taxes, pay salaries and pensions, and obtain financing. It emphasizes quickly passing a Tax Management Decree to collect taxes and establish the Catalan Treasury. In the beginning, when tax collection is limited, financing would come from loans, debt issuance, and credits. The document also proposes protecting Catalan companies from potential trade boycotts and enacting popular policies like tax cuts to gain social support for independence.

1. The process towards an Independent State
and the first months of the Catalan State
The first months management
July 2012

2. Simultaneously, it is necessary to quickly and efficiently manage the
operation mechanisms of the new state in the first months
Generate social support
Political
Sphere
Sovereignty
Act
Communicate the process internationally,
establish alliances with key countries and
agree with them terms for recognition
Declaration of
Independence
First months as an
independent State
International recognition of
the Catalan State
Define key transition
processes
Operational
Sphere
(State's
structure)
Define necessary
functions
Appoint, supervise and coordinate key persons and work teams
Develop information systems
2

3. These mechanisms structure in different spheres, but the
most important one is the payment of public employees
salaries, pensions and unemployment benefits
Sovereignty
Act
Generate social support
Political
Sphere
Communicate the process internationally,
establish alliances with key countries and
agree with them terms for recognition
Declaration of
Independence
First months as an
independent State
International recognition of
the Catalan State
}
Catalonia’s sovereignty restitution Decree
Bestow the President wide-ranging powers related to national sovereignty
during the constitution process, under Parliament’s control
Decree to directly and temporarily apply the Spanish laws until they are
abolished or substituted by Catalan laws
Tax management decree
Fiscal
}
Collect all taxes (Catalan Treasury)
Economic
}
}
Grant payment to public employees, unemployed and pensioners
Grant payment to Generalitat’s suppliers
}
Grant oil, gas, water, electricity, Internet and communications supply
Security
}
}
Grant security on streets
Grant control in key places
Social
}
Grant the provision of social services to population
}
}
Legal
Spheres
Energy and
communications
}
3

4. If the new Catalan state was immediately able to collect all taxes, it
would have 6,000 million € per year to reinvest in the country
Yearly public income and expenses of the new Catalan State
(thousands of million €)
25
27
63
38
28
8
Taxes paid by Quotes paid to Tax collection
Catalonia to the Social Security
capacity
State
by Catalonia
2
Generalitat's Unemployment Surplus without Generalitat's
non-financial benefits and
financial
debt interests
expenses
pensions
interests
6
Surplus after
interests
4

5. One of the key aspects is to collect as many taxes as possible
during the first months of the Catalan State
}
To that purpose, it will be immediately approved, on the same day of the Declaration of
Independence, the Tax Management Decree that will legislate the mechanisms of the Catalan
Treasury during the first months of the Catalan State
Yearly public income and expenses of the new Catalan State
(thousands of million €)
25
27
63
38
28
8
Taxes paid by Quotes paid to Tax collection
Catalonia to the Social Security
capacity
State
by Catalonia
2
Generalitat's Unemployment Surplus without Generalitat's
non-financial benefits and
financial
debt interests
expenses
pensions
interests
6
Surplus after
interests
5

6. The Tax Management Decree will include a set of mechanisms to
quickly obtain the taxpayers data
}
Companies, selfemployed and other
organizations
Establish personal bonuses for those treasury officials who collaborate in providing
the files and documentation from the old Spanish Treasury
}
Obtaining taxes and tax return databases from Regional Councils
}
Require the banks to send digital data of tax liquidations from all individuals and
organizations, defining sanctions and, if necessary, seizure orders
Require companies and self-employed individuals to register in a Generalitat’s
website, with their CIF (Fiscal Id Code), CNAE (Activity Code), etc.
}
Requirement to all companies based in Catalonia to submit an (electronic) copy of
their tax liquidations within the last 3-5 years.
}
Banks
Assumption of all Treasury officials as Generalitat’s government employees
}
Regional Councils
}
}
Spanish Tax Agency
Immediate assumption of the Spanish Treasury delegations located at Catalonia,
including all existing documentation in those offices
Establish bonuses for all those companies that submit these documents within the
first 20 days, and surcharges for those not doing so without just cause
Other ways to obtain Treasury files are:
Ø Formally request to Madrid the treasury files in Catalonia, during a transitional period
Ø Hire hackers
6

7. Likewise, the decree will set the obligation to pay the taxes to the
Catalan Treasury
}
Requirement to all companies based in Catalonia to pay their
taxes to the Catalan Treasury
}
Establish sanctions for those companies not doing so without
just cause
}
Enable the Mossos d'Esquadra force to inspect all those
companies that have not submitted the above mentioned
statements, after a decree is issued at the BOG (Generalitat’s
Official Bulletin)
}
However, There will be foreign multinational corporations
that won’t pay their taxes to Catalonia until their respective
governments recognize the Catalan State
§
This is one of the reasons for the need to accelerate international
recognition of the Catalan State
7

8. In the beginning, while it cannot collect all taxes, it will be
necessary to resort to other sources of financing
}
Loans against collateral of nationalized State’s assets:
§
§
§
§
§
§
Ports
Radio electric spectrum
Real state assets
Railway network
Airports
...
}
Issuance of debt to surface hidden assets
}
Loans from Catalan banks and others who want facilities to settle
on the Catalan State
}
Loans from “friend” governments with strategic interests
}
Issuance of Catalan debt
}
Credit in exchange for compensation
§
}
For example: Barcelona’s port
Issuance of an alternative currency as a contingency
8

9. These financing sources should allow to face the payments
during the first months of the new Catalan State
25
27
63
28
38
2
8
Impostos
pagats per
Catalunya
a l'Estat
Cotitzacions
Capacitat
a la Seguritat recaptatòria
Social pagades
per Catalunya
Despeses no Subsidis d'atur
financeres de
i pensions
la Generalitat
Superàvit
sense
interessos
financers
}
Interessos del
deute de la
Generalitat
6
Superàvit
després
d'interessos
During the first months it will be necessary to face 5.000 million € expenses
monthly:
§
§
§
§
Government employees
Pensioners
Unemployed
Generalitat’s expenditure
Percentage of tax income and social
security contributions collected by the
Government during the first months
Monthly ammount
to be covered with other
financing sources
25%
3.300 million €
50%
2.000 million €
75%
700 million €
9

10. It will also be necessary to protect the Catalan companies
suffering a trade boycott during the first months of the Catalan
State
}
The study by economists Guinjoan and Cuadras, based on interregional trade balances of
2005, mark a boycott maximum equivalent to 4% of GDP
}
Trade balances in 2005 showed a Catalan trade surplus against Spain of 10,3% of GDP
(20.000 MM€), while the fiscal deficit was 9,8%
}
The latest data on trade balances released by the state show a 4500 MM€ surplus. That
means that in the worst case scenario, according to the study, the impact of a boycott would
be 1% of GDP.
}
However, there will be companies suffering a trade boycott and it will be necessary to protect
them from the beginning:
§ Encouraging the counter boycott from Catalan people
§ Helping companies suffering boycott to refocus their business with State’s aid
10

11. The proclamation of the Catalan state must come together with
some early positive actions for citizens
}
Tax cuts
§ Announce tax cuts for all companies, specially Small and Middle sized companies
§ Reduce Income Taxes for all brackets, in order to equal it to average European levels
§ Study the reduction of VAT specially on all essential goods and those affecting the midlow section of the population
§ Eliminate the healthcare cent tax on oil
§ Reduce social quotes
}
Announce a study to increase pensions
}
Law of tax transfers to city councils to grant basic public services
}
Announce a study to rescue tolls, maintaining normal prices for heavy traffic and
reduced prices for cars, only to cover for maintenance and a “normal” profit for
concessionaires
All this will be possible when we collect all taxes
11

12. The proclamation of the Catalan state must come together with
some early positive actions for citizens
}
Immediate promotion of ACC10 and policies for internationalization and innovation
}
Act to turn the ICF into the Catalan Public Bank, with immediate credit
}
Risk guarantee Law for companies
}
Dation in Payment Law
}
Get back the Saving Banks Law
All this will be possible when we collect all taxes
12

13. Empresaris
per
l’Estat
propi
Only
by
being
an
independent
state
will
Catalonia
be
economically
viable
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