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Dear all,
We hope you, your families and colleagues are
safe and healthy. We are writing to update you on developments regarding
the personal tax environment in Spain.
The Spanish General Directorate of Taxes has
recently publicly released their Annual Tax Enforcement Plan for 2021,
laying out the focus areas of the Spanish tax authorities for reviews,
audits and inspections for this year.
Below is a brief summary of specific target
areas of special relevance to International Private Wealth Clients:
- Review
and audit of individual tax residence in Spain, specifically
as regards taxpayers identified as non-tax resident in the Spanish
tax database but who the Spanish tax authorities have indications
of:
- Significant presence in Spain
- The existence of a relevant or operating center
of economic interest
- The existence of close family ties in Spain
- Full
incorporation of actual data received by reason of international
exchange of information mechanisms (CRS, FATCA and other). The
Spanish Tax Administration will inform taxpayers of relevant
international tax information on their records throughout 2021 as
part of their tax fraud prevention practices.
- Unprecedented
use of IT tools and Big Data in order to profile taxpayers
and determine specific individuals targeted for audit and inspection
procedures, particularly on the basis of their connections to:
- Intermediary entities and holding structures
(such as trusts, foundations, partnerships etc)
- Their position or potential position as UBO
of entities with a Spanish asset base.
- Specific
review and audits of Wealth Tax and Inheritance Tax filings.
- Review
and audit of transfers of individual tax residence among
different regions in Spain in order to apply beneficial regional
tax reliefs and exemptions..
- Specific
review of Business Property Relief claims for Inheritance and
Gift Tax purposes, particularly regarding the emoluments test..
- Specific
areas for potential criminal prosecutions under tax fraud charges
are highlighted as follows:.
- Simulated non tax residence in Spain
- Use of opaque structures
- Focus on professional “facilitators” of tax
fraud
Reviews and audits on these identified class
of taxpayers will be undertaken and coordinated by the Spanish Central
Unit of Control of High Net Worth/Ultra High Net Worth Taxpayers, now
fully operational.
We would strongly encourage clients and advisors
to identify their potential exposure to a Spanish tax inspection in
2021 by particular reference to these focus areas and to obtain
advice on how best to manage their potential exposure and their
Spanish tax situation in advance, considering the likelihood of
receiving a notification of a commencement of a Spanish tax inspection in
the coming months..
We would of course be happy to provide
further advice if you have any queries or wish to discuss further any of
the above issues or any other Spanish tax or legal matter which we may
assist you with.
Warmest regards,
Patricia García Mediero
Partner
Avantia Asesoramiento Fiscal y
Legal
Tel: (+34) 94 423 2156
patricia.garcia@avantia-fo.com
Other
contacts at Avantia:
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