Form 720 Spain and other taxes to think about in March

March is the last month granted by the Tax Agency to be able to present Form 720 Spain on time and avoid the much-dreaded tax penalties.

Much has been said in recent years about the proportionality of the sanctioning regime and the non-application of the normal prescription rules that can lead to the qualification of assets abroad in the case of not presenting or presenting the aforementioned after the deadline informative statement.

Excessive Form 720 Spain fines

Failure to file or submit Form 720 after the deadline entails a disproportionate penalty regime, specific to this model and not comparable, due to its high amount, with other types of current tax penalties.

All this prompted a law firm in Mallorca to denounce this sanctioning regime before the European Commission in February 2013, given the helplessness of the possessors of assets abroad.

The complaint filed led to the initiation of an infringement procedure against Spain in November 2015. In February 2017, the European Community demanded the modification of the Spanish regulations through a Reasoned Opinion kept secret until December 2018.

Because Spain has not modified the regulations, on June 6, 2019, the European Commission decided to file an appeal against the Model 720 before the Court of Justice of the European Union (CJEU).

The Court’s Resolution is expected to take place around the middle of this year 2021 approximately.

Therefore, and unfortunately, the sanctioning regime is still in force, and the presentation or presentation after the deadline of form 720 continues to carry the possible imposition of very high fines.

If you are interested in knowing more about the fines that are being applied, you can read our post about Form 720.

Form 720 Spain prescription

Without a doubt, it is another point that has created the most controversy.

Either non-presentation or the presentation after the deadline of Form 720 Spain may lead to the classification of the assets abroad as unjustified capital gains that do not prescribe.

The European Commission understands that non-prescription violates Community law. Therefore, this aspect is also included in the appeal filed with the CJEU. Therefore, the Court must also rule on the matter.

Other fiscal forms for March

Remember that some tax forms must be presented in March to comply with current legislation. Among the best known are:

• Form 349: Summary statement of intra-community operations of February.
• Form 303: Self-assessment for February.
• Form 322: Group of entities. Individual form.
• Forms 111,115,123,124,126,128,130: Large companies.
• Form 347: Annual declaration of operations with third parties (last day: March 1).