Video analysis by Xavier Vilalta<\/strong>, director of the Tax Department, on the ruling of the Court of Justice of the European Union about Model 720,<\/strong> in which it eliminates its most controversial aspects<\/strong>.<\/p>\n<\/div><\/div>
Key ideas from the video<\/strong>:<\/p>\n\n- Europe corrects Model 720<\/strong>, it does not eliminate it.<\/li>\n
- The ruling focuses on three points:\n
\n- The imprescriptibility<\/strong>. Until now, it was not prescribed. The Tax Agency required the situation to be regularized if it had not been done within the deadline. Now, Europe corrects this fact by saying that the principle of legal certainty and free movement of capital must prevail. And the four-year statute of limitations must be considered again.<\/li>\n
- 150% penalty<\/strong>. If they discovered assets abroad that you had not declared in Form 720<\/strong>, apart from considering them as income, as unjustified capital gains in your last unsubscribed declaration, they could add a penalty of 150% of the value of those profits. This statement is struck down as disproportionate.<\/li>\n
- Fixed fines for undeclared or incorrect data or data sets<\/strong>. These fines could range from \u20ac100 to \u20ac5,000.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n“We recommend presenting Model 720 this year to avoid possible problems since they have only corrected nuances.<\/strong>“<\/p>\n<\/blockquote>\n\n- The fundamental pillar of the ruling is the free movement of capital<\/strong> since measures like these discourage the interest of Spanish investors in investing abroad. Apart from the aggravation that this entails concerning investing in the same products in national territory that do not have sanctioning regimes or obligations of this nature.<\/li>\n
- The Form 720<\/strong> is a handy tool for the Tax Administration to obtain information on the assets that Spanish taxpayers have abroad. So we doubt that the Tax Agency is going to eliminate it. Most likely, it will remain mandatory.<\/li>\n<\/ul>\n
\n“We propose to demand the fines already imposed since, according to the European Union, they are not appropriate.<\/strong>“<\/p>\n<\/blockquote>\n\n- The ruling gives the Government of Spain time to incorporate the content of this ruling into its legislation.<\/strong><\/li>\n
- We will have to wait to see the modifications that affect the sanctions<\/strong>.<\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div>