FORM 720 SPAIN<\/a><\/p>\n<\/div><\/div><\/div><\/div><\/div>\nSince its approval in 2012, Form 720 Spain<\/a> has had it\u2019s share of controversy, especially as regards its penalties for submission after the deadline. This is an informative statement of assets and rights abroad that aims to avoid tax fraud, but it is seen to go against some of the EU\u2019s principles, namely the free movement of persons and capital. We have written this post to tell you about the penalties you could face for submitting Form 720 Spain outside the legal term.<\/p>\nThere have been many people who have seen how the Treasury has made them pay extortionate penalties for submitting Form 720 Spain after the deadline. In fact, in June 2015 we saw the case of an Andalusian pensioner who voluntarily submitted Form 720 Spain after the deadline. He stated he had about 340,000 euros in Switzerland and the Treasury fined him 440,000 euros.<\/p>\nThat year the period for submissions ran from 1 January to 1 April 2019. If you cannot submit the statement over the internet within the deadline provided, you can do so during the four calendar days following the end of the period.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/i><\/i><\/span>Questions about Form 720 Spain, outside legal term<\/span><\/a><\/h4><\/div>\n\nWhat penalties could you face for submitting Form 720 Spain outside the legal term?<\/a><\/li>\nWhat does the Central Administrative Economic Court (TEAC) have to say about the Form 720 Spain penalties?<\/a><\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\nWhat penalties could you face for submitting Form 720 Spain outside the legal term?<\/h2>\nThe penalty system for Form 720 Spain is provided in Additional Provision 18 of the General Tax Law which regulates the following:<\/p>\nTax offences include:<\/b><\/p>\n\nNot submitting Form 720 Spain within the legal deadline.<\/li>\nSubmitting it using incomplete, inaccurate or false data.<\/li>\nSubmitting it via any means other than electronic means, in the cases in which said means should be used.<\/li>\n<\/ul>\nAll of these offences are considered to be very serious and are punishable as follows:<\/b><\/p>\n\nIf you fail to report your accounts in foreign credit institutions, titles, assets or securities deposited abroad or real estate located abroad, you could face a fixed fine of 5,000 euros for each data or series of data of the same account, with a minimum of 10,000 euros.<\/li>\nIf you submit Form 720 Spain voluntarily but after the deadline (without an official requirement from the Tax Agency), the fine will be 100 euros for each data or series of data, with a minimum of 1,500 euros.<\/li>\n<\/ul>\nAdditionally, we mustn\u2019t forget that the Treasury Department may impose additional fines arising from other taxes, i.e. if it detects the existence of capital gains not declared in your personal income tax return. In this case, you could be facing a fine of 150% of the amount to be paid for said capital gain.<\/p>\n<\/div>\nWhat does the Central Administrative Economic Court (TEAC) have to say about the Form 720 Spain penalties?<\/h2>\nIn May 2019, the TEAC overturned a 150% fine which was imposed on a taxpayer due to the capital gain arising from declaring assets abroad.<\/p>\nHowever, the TEAC considers that the obligation to declare assets and rights abroad does not violate the free movement of capital within the European Union.<\/p>\nIn this case, it overturned the fine, but not on the grounds of being unfair, it did so because there is insufficient reasoning in the penalty agreement and because it considers that the taxpayer had no intent to defraud.<\/p>\nTherefore the TEAC notes special circumstances, which are: <\/b><\/p>\n\nThe submission was voluntary, despite it being outside the legal term.<\/li>\nThat the declaration was a novelty in the Spanish legal system.<\/li>\nThat it involved a pensioner who was not required to submit a personal income tax return and probably didn\u2019t have any help from a tax consultant.<\/li>\nThat his actions proved he was unaware of the consequences arising from a late submission.<\/li>\nThat the taxpayer provided the supporting documents stating that he had owned these assets in previous periods.<\/li>\n<\/ul>\nOther Spanish courts have also overturned fines for submitting Form 720 Spain after the deadline, but all of these cases involve taxpayers who have submitted the form on a voluntary basis and, therefore, the fines are lower. In particular, we want to mention the following judgements:<\/p>\n\nThe judgement of the High Court of Justice of Castilla y Le\u00f3n, of 28 November 2018. This judgement conveys that the penalties for late submission of Form 720 Spain are null and void due to its disproportionality.<\/li>\nThe judgement of the High Court of Justice of Catalonia, of 20 May 2019. In this case, the judgement also involves a case of submission of Form 720 Spain after the deadline relating to a bank account abroad and argues that there is no guilt and that there was already an EC proceeding filed against Spain for the disproportionality of the penalties of From 720 Spain.<\/li>\nThe judgement of the Economic-Administrative Court of Valencia (resolutions dated 29 September and 30 November 2017). In these cases, the Court also saw a lack of guilt on the taxpayer\u2019s part since there was an obvious difficulty in submitting Form 720 Spain due to a lack of knowledge beyond their control.<\/li>\n<\/ul>\nIn short, if you haven\u2019t submitted Form 720 Spain within the legal term and you are thinking of submitting it, you must speak to an expert tax adviser who can:<\/p>\n\nLook into your specific case.<\/li>\nAdvise you regarding the potential penalties you may face.<\/li>\nAnalyse the court judgements that deal with cases similar to yours.<\/li>\nPrepare and submit the declaration free of errors.<\/li>\nSupport you in case a penalty proceeding is filed against you.<\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div>×<\/button>Share:<\/h3><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\n
Since its approval in 2012, Form 720 Spain<\/a> has had it\u2019s share of controversy, especially as regards its penalties for submission after the deadline. This is an informative statement of assets and rights abroad that aims to avoid tax fraud, but it is seen to go against some of the EU\u2019s principles, namely the free movement of persons and capital. We have written this post to tell you about the penalties you could face for submitting Form 720 Spain outside the legal term.<\/p>\nThere have been many people who have seen how the Treasury has made them pay extortionate penalties for submitting Form 720 Spain after the deadline. In fact, in June 2015 we saw the case of an Andalusian pensioner who voluntarily submitted Form 720 Spain after the deadline. He stated he had about 340,000 euros in Switzerland and the Treasury fined him 440,000 euros.<\/p>\nThat year the period for submissions ran from 1 January to 1 April 2019. If you cannot submit the statement over the internet within the deadline provided, you can do so during the four calendar days following the end of the period.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/i><\/i><\/span>Questions about Form 720 Spain, outside legal term<\/span><\/a><\/h4><\/div>\n\nWhat penalties could you face for submitting Form 720 Spain outside the legal term?<\/a><\/li>\nWhat does the Central Administrative Economic Court (TEAC) have to say about the Form 720 Spain penalties?<\/a><\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\nWhat penalties could you face for submitting Form 720 Spain outside the legal term?<\/h2>\nThe penalty system for Form 720 Spain is provided in Additional Provision 18 of the General Tax Law which regulates the following:<\/p>\nTax offences include:<\/b><\/p>\n\nNot submitting Form 720 Spain within the legal deadline.<\/li>\nSubmitting it using incomplete, inaccurate or false data.<\/li>\nSubmitting it via any means other than electronic means, in the cases in which said means should be used.<\/li>\n<\/ul>\nAll of these offences are considered to be very serious and are punishable as follows:<\/b><\/p>\n\nIf you fail to report your accounts in foreign credit institutions, titles, assets or securities deposited abroad or real estate located abroad, you could face a fixed fine of 5,000 euros for each data or series of data of the same account, with a minimum of 10,000 euros.<\/li>\nIf you submit Form 720 Spain voluntarily but after the deadline (without an official requirement from the Tax Agency), the fine will be 100 euros for each data or series of data, with a minimum of 1,500 euros.<\/li>\n<\/ul>\nAdditionally, we mustn\u2019t forget that the Treasury Department may impose additional fines arising from other taxes, i.e. if it detects the existence of capital gains not declared in your personal income tax return. In this case, you could be facing a fine of 150% of the amount to be paid for said capital gain.<\/p>\n<\/div>\nWhat does the Central Administrative Economic Court (TEAC) have to say about the Form 720 Spain penalties?<\/h2>\nIn May 2019, the TEAC overturned a 150% fine which was imposed on a taxpayer due to the capital gain arising from declaring assets abroad.<\/p>\nHowever, the TEAC considers that the obligation to declare assets and rights abroad does not violate the free movement of capital within the European Union.<\/p>\nIn this case, it overturned the fine, but not on the grounds of being unfair, it did so because there is insufficient reasoning in the penalty agreement and because it considers that the taxpayer had no intent to defraud.<\/p>\nTherefore the TEAC notes special circumstances, which are: <\/b><\/p>\n\nThe submission was voluntary, despite it being outside the legal term.<\/li>\nThat the declaration was a novelty in the Spanish legal system.<\/li>\nThat it involved a pensioner who was not required to submit a personal income tax return and probably didn\u2019t have any help from a tax consultant.<\/li>\nThat his actions proved he was unaware of the consequences arising from a late submission.<\/li>\nThat the taxpayer provided the supporting documents stating that he had owned these assets in previous periods.<\/li>\n<\/ul>\nOther Spanish courts have also overturned fines for submitting Form 720 Spain after the deadline, but all of these cases involve taxpayers who have submitted the form on a voluntary basis and, therefore, the fines are lower. In particular, we want to mention the following judgements:<\/p>\n\nThe judgement of the High Court of Justice of Castilla y Le\u00f3n, of 28 November 2018. This judgement conveys that the penalties for late submission of Form 720 Spain are null and void due to its disproportionality.<\/li>\nThe judgement of the High Court of Justice of Catalonia, of 20 May 2019. In this case, the judgement also involves a case of submission of Form 720 Spain after the deadline relating to a bank account abroad and argues that there is no guilt and that there was already an EC proceeding filed against Spain for the disproportionality of the penalties of From 720 Spain.<\/li>\nThe judgement of the Economic-Administrative Court of Valencia (resolutions dated 29 September and 30 November 2017). In these cases, the Court also saw a lack of guilt on the taxpayer\u2019s part since there was an obvious difficulty in submitting Form 720 Spain due to a lack of knowledge beyond their control.<\/li>\n<\/ul>\nIn short, if you haven\u2019t submitted Form 720 Spain within the legal term and you are thinking of submitting it, you must speak to an expert tax adviser who can:<\/p>\n\nLook into your specific case.<\/li>\nAdvise you regarding the potential penalties you may face.<\/li>\nAnalyse the court judgements that deal with cases similar to yours.<\/li>\nPrepare and submit the declaration free of errors.<\/li>\nSupport you in case a penalty proceeding is filed against you.<\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div>×<\/button>Share:<\/h3><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\n
There have been many people who have seen how the Treasury has made them pay extortionate penalties for submitting Form 720 Spain after the deadline. In fact, in June 2015 we saw the case of an Andalusian pensioner who voluntarily submitted Form 720 Spain after the deadline. He stated he had about 340,000 euros in Switzerland and the Treasury fined him 440,000 euros.<\/p>\n
That year the period for submissions ran from 1 January to 1 April 2019. If you cannot submit the statement over the internet within the deadline provided, you can do so during the four calendar days following the end of the period.<\/p>\n<\/div><\/div><\/div><\/div><\/div>
The penalty system for Form 720 Spain is provided in Additional Provision 18 of the General Tax Law which regulates the following:<\/p>\n
Tax offences include:<\/b><\/p>\n\nNot submitting Form 720 Spain within the legal deadline.<\/li>\nSubmitting it using incomplete, inaccurate or false data.<\/li>\nSubmitting it via any means other than electronic means, in the cases in which said means should be used.<\/li>\n<\/ul>\nAll of these offences are considered to be very serious and are punishable as follows:<\/b><\/p>\n\nIf you fail to report your accounts in foreign credit institutions, titles, assets or securities deposited abroad or real estate located abroad, you could face a fixed fine of 5,000 euros for each data or series of data of the same account, with a minimum of 10,000 euros.<\/li>\nIf you submit Form 720 Spain voluntarily but after the deadline (without an official requirement from the Tax Agency), the fine will be 100 euros for each data or series of data, with a minimum of 1,500 euros.<\/li>\n<\/ul>\nAdditionally, we mustn\u2019t forget that the Treasury Department may impose additional fines arising from other taxes, i.e. if it detects the existence of capital gains not declared in your personal income tax return. In this case, you could be facing a fine of 150% of the amount to be paid for said capital gain.<\/p>\n<\/div>\nWhat does the Central Administrative Economic Court (TEAC) have to say about the Form 720 Spain penalties?<\/h2>\nIn May 2019, the TEAC overturned a 150% fine which was imposed on a taxpayer due to the capital gain arising from declaring assets abroad.<\/p>\nHowever, the TEAC considers that the obligation to declare assets and rights abroad does not violate the free movement of capital within the European Union.<\/p>\nIn this case, it overturned the fine, but not on the grounds of being unfair, it did so because there is insufficient reasoning in the penalty agreement and because it considers that the taxpayer had no intent to defraud.<\/p>\nTherefore the TEAC notes special circumstances, which are: <\/b><\/p>\n\nThe submission was voluntary, despite it being outside the legal term.<\/li>\nThat the declaration was a novelty in the Spanish legal system.<\/li>\nThat it involved a pensioner who was not required to submit a personal income tax return and probably didn\u2019t have any help from a tax consultant.<\/li>\nThat his actions proved he was unaware of the consequences arising from a late submission.<\/li>\nThat the taxpayer provided the supporting documents stating that he had owned these assets in previous periods.<\/li>\n<\/ul>\nOther Spanish courts have also overturned fines for submitting Form 720 Spain after the deadline, but all of these cases involve taxpayers who have submitted the form on a voluntary basis and, therefore, the fines are lower. In particular, we want to mention the following judgements:<\/p>\n\nThe judgement of the High Court of Justice of Castilla y Le\u00f3n, of 28 November 2018. This judgement conveys that the penalties for late submission of Form 720 Spain are null and void due to its disproportionality.<\/li>\nThe judgement of the High Court of Justice of Catalonia, of 20 May 2019. In this case, the judgement also involves a case of submission of Form 720 Spain after the deadline relating to a bank account abroad and argues that there is no guilt and that there was already an EC proceeding filed against Spain for the disproportionality of the penalties of From 720 Spain.<\/li>\nThe judgement of the Economic-Administrative Court of Valencia (resolutions dated 29 September and 30 November 2017). In these cases, the Court also saw a lack of guilt on the taxpayer\u2019s part since there was an obvious difficulty in submitting Form 720 Spain due to a lack of knowledge beyond their control.<\/li>\n<\/ul>\nIn short, if you haven\u2019t submitted Form 720 Spain within the legal term and you are thinking of submitting it, you must speak to an expert tax adviser who can:<\/p>\n\nLook into your specific case.<\/li>\nAdvise you regarding the potential penalties you may face.<\/li>\nAnalyse the court judgements that deal with cases similar to yours.<\/li>\nPrepare and submit the declaration free of errors.<\/li>\nSupport you in case a penalty proceeding is filed against you.<\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div>×<\/button>Share:<\/h3><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\n
All of these offences are considered to be very serious and are punishable as follows:<\/b><\/p>\n\nIf you fail to report your accounts in foreign credit institutions, titles, assets or securities deposited abroad or real estate located abroad, you could face a fixed fine of 5,000 euros for each data or series of data of the same account, with a minimum of 10,000 euros.<\/li>\nIf you submit Form 720 Spain voluntarily but after the deadline (without an official requirement from the Tax Agency), the fine will be 100 euros for each data or series of data, with a minimum of 1,500 euros.<\/li>\n<\/ul>\nAdditionally, we mustn\u2019t forget that the Treasury Department may impose additional fines arising from other taxes, i.e. if it detects the existence of capital gains not declared in your personal income tax return. In this case, you could be facing a fine of 150% of the amount to be paid for said capital gain.<\/p>\n<\/div>\nWhat does the Central Administrative Economic Court (TEAC) have to say about the Form 720 Spain penalties?<\/h2>\nIn May 2019, the TEAC overturned a 150% fine which was imposed on a taxpayer due to the capital gain arising from declaring assets abroad.<\/p>\nHowever, the TEAC considers that the obligation to declare assets and rights abroad does not violate the free movement of capital within the European Union.<\/p>\nIn this case, it overturned the fine, but not on the grounds of being unfair, it did so because there is insufficient reasoning in the penalty agreement and because it considers that the taxpayer had no intent to defraud.<\/p>\nTherefore the TEAC notes special circumstances, which are: <\/b><\/p>\n\nThe submission was voluntary, despite it being outside the legal term.<\/li>\nThat the declaration was a novelty in the Spanish legal system.<\/li>\nThat it involved a pensioner who was not required to submit a personal income tax return and probably didn\u2019t have any help from a tax consultant.<\/li>\nThat his actions proved he was unaware of the consequences arising from a late submission.<\/li>\nThat the taxpayer provided the supporting documents stating that he had owned these assets in previous periods.<\/li>\n<\/ul>\nOther Spanish courts have also overturned fines for submitting Form 720 Spain after the deadline, but all of these cases involve taxpayers who have submitted the form on a voluntary basis and, therefore, the fines are lower. In particular, we want to mention the following judgements:<\/p>\n\nThe judgement of the High Court of Justice of Castilla y Le\u00f3n, of 28 November 2018. This judgement conveys that the penalties for late submission of Form 720 Spain are null and void due to its disproportionality.<\/li>\nThe judgement of the High Court of Justice of Catalonia, of 20 May 2019. In this case, the judgement also involves a case of submission of Form 720 Spain after the deadline relating to a bank account abroad and argues that there is no guilt and that there was already an EC proceeding filed against Spain for the disproportionality of the penalties of From 720 Spain.<\/li>\nThe judgement of the Economic-Administrative Court of Valencia (resolutions dated 29 September and 30 November 2017). In these cases, the Court also saw a lack of guilt on the taxpayer\u2019s part since there was an obvious difficulty in submitting Form 720 Spain due to a lack of knowledge beyond their control.<\/li>\n<\/ul>\nIn short, if you haven\u2019t submitted Form 720 Spain within the legal term and you are thinking of submitting it, you must speak to an expert tax adviser who can:<\/p>\n\nLook into your specific case.<\/li>\nAdvise you regarding the potential penalties you may face.<\/li>\nAnalyse the court judgements that deal with cases similar to yours.<\/li>\nPrepare and submit the declaration free of errors.<\/li>\nSupport you in case a penalty proceeding is filed against you.<\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div>×<\/button>Share:<\/h3><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\n
Additionally, we mustn\u2019t forget that the Treasury Department may impose additional fines arising from other taxes, i.e. if it detects the existence of capital gains not declared in your personal income tax return. In this case, you could be facing a fine of 150% of the amount to be paid for said capital gain.<\/p>\n
In May 2019, the TEAC overturned a 150% fine which was imposed on a taxpayer due to the capital gain arising from declaring assets abroad.<\/p>\n
However, the TEAC considers that the obligation to declare assets and rights abroad does not violate the free movement of capital within the European Union.<\/p>\n
In this case, it overturned the fine, but not on the grounds of being unfair, it did so because there is insufficient reasoning in the penalty agreement and because it considers that the taxpayer had no intent to defraud.<\/p>\n
Therefore the TEAC notes special circumstances, which are: <\/b><\/p>\n\nThe submission was voluntary, despite it being outside the legal term.<\/li>\nThat the declaration was a novelty in the Spanish legal system.<\/li>\nThat it involved a pensioner who was not required to submit a personal income tax return and probably didn\u2019t have any help from a tax consultant.<\/li>\nThat his actions proved he was unaware of the consequences arising from a late submission.<\/li>\nThat the taxpayer provided the supporting documents stating that he had owned these assets in previous periods.<\/li>\n<\/ul>\nOther Spanish courts have also overturned fines for submitting Form 720 Spain after the deadline, but all of these cases involve taxpayers who have submitted the form on a voluntary basis and, therefore, the fines are lower. In particular, we want to mention the following judgements:<\/p>\n\nThe judgement of the High Court of Justice of Castilla y Le\u00f3n, of 28 November 2018. This judgement conveys that the penalties for late submission of Form 720 Spain are null and void due to its disproportionality.<\/li>\nThe judgement of the High Court of Justice of Catalonia, of 20 May 2019. In this case, the judgement also involves a case of submission of Form 720 Spain after the deadline relating to a bank account abroad and argues that there is no guilt and that there was already an EC proceeding filed against Spain for the disproportionality of the penalties of From 720 Spain.<\/li>\nThe judgement of the Economic-Administrative Court of Valencia (resolutions dated 29 September and 30 November 2017). In these cases, the Court also saw a lack of guilt on the taxpayer\u2019s part since there was an obvious difficulty in submitting Form 720 Spain due to a lack of knowledge beyond their control.<\/li>\n<\/ul>\nIn short, if you haven\u2019t submitted Form 720 Spain within the legal term and you are thinking of submitting it, you must speak to an expert tax adviser who can:<\/p>\n\nLook into your specific case.<\/li>\nAdvise you regarding the potential penalties you may face.<\/li>\nAnalyse the court judgements that deal with cases similar to yours.<\/li>\nPrepare and submit the declaration free of errors.<\/li>\nSupport you in case a penalty proceeding is filed against you.<\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div>×<\/button>Share:<\/h3><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\n
Other Spanish courts have also overturned fines for submitting Form 720 Spain after the deadline, but all of these cases involve taxpayers who have submitted the form on a voluntary basis and, therefore, the fines are lower. In particular, we want to mention the following judgements:<\/p>\n
In short, if you haven\u2019t submitted Form 720 Spain within the legal term and you are thinking of submitting it, you must speak to an expert tax adviser who can:<\/p>\n