FORM 720 SPAIN<\/a><\/p>\n<\/div><\/div><\/div><\/div><\/div>\n Since it was first implemented in January 2013, Form 720 Spain<\/strong> has been surrounded by controversy due to its penalty system, through which the Treasury Department can decide to impose penalties as high as 150% of the undeclared amount. In this \u2018Form 720 Spain, illegal\u2019 post we will tell you about this form, why it can be considered illegal and the latest developments on this topic.<\/p>\n<\/div><\/div><\/div><\/div><\/div> Although Form 720 Spain is highly questionable, it is actually fulfilling its purpose. As it happens, since it was created by the Minister of Finance, Crist\u00f3bal Montoro, we have discovered that Spaniards and foreigners residing in Spain have approximately 156 million euros in assets and rights abroad. As a result, the government\u2019s fight against tax fraud is becoming more and more effective.<\/p>\n Form 720 Spain is the informative statement of assets and rights abroad. You must provide the following information:<\/strong><\/p>\n In the case of securities and rights representing a holding in a company, you must provide the following information:<\/strong><\/p>\n The statement will include:<\/strong><\/p>\n The following are obliged to submit Form 720 Spain:<\/p>\n The cases in which Form 720 Spain must be submitted are:<\/p>\n The General Tax Law, in its Additional Provision 18, regulates the penalty regime affecting Form 720 Spain and establishes the following:<\/p>\n All these offences are considered to be very serious and may entail the following penalties:<\/p>\n If you submit the form after the deadline without being requested to do so by the Treasury Department, they could fine you 100 euros for each data, with a minimum of 1,500 euros. If you submit the form after the deadline having being requested to do so by the Treasury Department, they could fine you 5,000 euros for each data, with a minimum of 10,000 euros.<\/p>\n As seen, this is an informative statement that can involve exceedingly high penalties. In this sense, the EC considers that the penalties arising from Form 720 Spain are excessive and they infringe several fundamental principles of the European Union, such as the free movement of persons and workers, freedom of establishment or the free movement of capital.<\/p>\n As a result, the European Commission has brought Spain before the EU High Court of Justice. While waiting for the European Court\u2019s judgement, in recent months the Spanish courts have passed judgement on several issues. Of these judgements, we can highlight the following:<\/p>\n<\/i><\/i><\/span>Questions about Form 720 Spain, unlawful<\/span><\/a><\/h4><\/div>
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What is Form 720 Spain?<\/h2>\n
\nForm 720 Spain must be used to report on:<\/p>\nAccounts in financial institutions abroad.<\/h3>\n
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Securities, rights, insurances and income deposited, managed or obtained abroad.<\/h3>\n
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Real estate assets or rights on real estate property situated abroad.<\/h3>\n
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Who should submit Form 720 Spain?<\/h2>\n
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What happens if you don\u2019t meet the reporting obligation for Form 720 Spain?<\/h2>\n
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Form 720 Spain, illegal: why?<\/h2>\n
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