Tax Newsletter - April 2019
Spain -
Once the liquidation phase has begun administrative enforcement actions cannot be taken to collect pre-insolvency claims
In a judgment dated March 20, 2019, the Supreme Court examined the case of an insolvent company, which, with the liquidation phase already in motion, received various interlocutory orders initiating enforced collection proceedings targeted at enforcing given tax claims classified as pre-insolvency claims by the tax authorities.
Judgments
- Corporate income tax.- Late-payment interest arising from notices of assessment by tax auditors was deductible before the current Corporate Income Tax Law
- Personal income tax.- If it is evidenced that ownership of the assets comes from a statute-barred year, there cannot be an unjustified capital gain
- Personal income tax.- Tenured public service workers and public sector employees are eligible for tax relief for work performed abroad
- Nonresident income tax.- Spanish law discriminates against nonresident investment funds in Spain
- Inheritance and gift tax.- Final assessments issued under a law precluded by European law may be held null and void as a matter of law
- Transfer and stamp tax.- The taxable amount for stamp tax purposes in the dissolution of a condominium is the value of the transferred portion of the property
- Tax on increase in urban land value.- The new Navarra law on the tax on increase in urban land value is unconstitutional
- Retroactive application of tax laws.- The tax on the value of electricity output is chargeable in the historic territories from when the central government law was approved
Decisions
- Nonresident income tax.- A nonresident income tax withholding higher than the required amount is an incorrect payment
- VAT.- Royalties are part of customs value if they are related to the imported goods
- Administrative procedure.- The decision to correct the tax domicile has effects in relation to non-statute barred tax obligations on its notification date
- Collection procedure.- Tax debts cannot be offset against claims acknowledged by another authority
- Collection procedure.- Collection of a debt cannot be enforced if an application has been made for deferred or split payment of the debt without notifying dismissal of the administrative proceeding initiated with that application
- Economic-administrative procedure.- The economic-administrative tribunals are not required to ask for the case record to be completed before declaring the debt statute-barred
Legislation
- Approval of the effective annual interest rate for the second calendar quarter of 2019, for the purpose of characterizing certain financial assets for tax purposes
- New legislation in relation to making payments of the debts managed by AEAT directly from bank accounts
Miscellaneous
- Approval of an international agreement on taxation and the protection of financial interests with the United Kingdom regarding Gibraltar
- The VAT Committee approves guidelines in relation to certain elements of Brexit
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