Tax Newsletter - January 2020
Spain -
Parent-subsidiary Directive disallows the parent company being taxed directly or indirectly on distributions by its subsidiary
The Court of Justice of the European Union (CJEU) rules that making the deduction in respect of dividends as a priority over other deductions that have a time limit is contrary to the subsidiary-parent directive.
Judgments
- Personal income tax.- Reduction for renting home may be claimed on unreported income
- VAT.- Advertising services are used in Spain if it from there that the advertising material is broadcast
- Tax on increase in urban land value.- Enforced collection of an assessment that is null and void as a matter of law may be appealed even though the assessment has become final
- Tax proceedings.- The tax authorities must serve reasonable notice of decisions that are to be enforce
- Audit procedure.- Auditors are allowed to review statute-barred transactions to conclude on their effects in non-statute barred periods before amendment of General Taxation Law
Decisions
- Rules characterizing tax legislation.- Though the tax authorities cannot hold a simulated agreement null and void for civil or commercial law purposes, they can for tax purposes
- Collection procedure.- Successor is only liable for tax debts generated at conducting the business
- Enforcement procedure.- The maximum period for requesting enforcement of an administrative decision is 5 years
- Special application for judicial review of final decisions.- An enforcement decision is a material document for the purposes of a special application for judicial review of final decisions if it includes new facts
- Requests for preliminary rulings.- TEAC not allowed to submit requests for preliminary rulings to the CJEU
Resolutions by the Directorate General for Taxes
- Corporate income tax.- DGT examines various important issues in relation to offsetting tax losses
- Corporate income tax.- Even though the absorbed company has tax loss carryforwards, the merger may have valid economic reasons
- Personal income tax.- Shares under bare ownership and under legal ownership are not shares of the same kind
- Wealth tax.- An individual resident in Gibraltar is not required to report an investment in a Gibraltar company that indirectly controls real estate in Spain
- Inheritance and gift tax.- Proof of payment of the tax is needed for a company to be able to deliver registered shares to the heir
Legislation
- Approval of the Annual Tax and Customs Control Plan for 2020
- Approval of standard document for substantiating appointment of a representative in the procedure for providing electronic accounting entries on products subject to excise and other special taxes
- Publication of list of municipalities qualifying for the revised cadaster value multipliers approved for 2020
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