Tax Newsletter - June 2017

06 / 30 / 2017

June newsletter prepared by professionals from the Tax Department.

1. Judgments

1 Direct taxation.- The Parent-Subsidiary Directive applies to any tax on dividends which may give rise to double taxation (Court of Justice of the European Union. Judgments of May 17, 2017, cases C-68/15 and C-365/16)
2 Information exchanges within the EU.- Any information exchange request must satisfy the “foreseeable relevance” requirement (Court of Justice of the European Union. Judgment of May 16, 2017, case C-682/15)
3 Tax on economic activities.- The exemption for the commencement of an activity may be claimed in business groups (Valencia High Court. Judgment of January 23, 2017)
4 Voluntary disclosure program.- The “tax amnesty” overturned (Constitutional Court. Judgment of June 8, 2017)
5 Tax liability.- Effects of entry at the registry of the formation and extinguishment of companies (Supreme Court (Civil Chamber). Judgment of May 24, 2017)
6 Audit procedure – The notice informing the taxable person of a change to the audit body stops the clock for the time period (National Appellate Court. Judgment of April 12, 2017)

2. Administrative doctrine

1 Corporate income tax.- The tax credit for reinvestment requires the acquisition of ownership of at least 5% (Central Economic-Administrative Tribunal. Judgment of May 9, 2017)
2 Personal income tax.- Maternity benefit not exempt (Directorate General for Taxes. Ruling V0954-17, of April 18, 2017)
3 Personal income tax.- The net income from an economic activity must include the exchange differences at year-end (Directorate General for Taxes. Ruling V0933.17, April 12, 2017)
4 Personal income tax.- Teleworking is done at the place where the worker is physically present (Directorate General for Taxes. Ruling V0906-17, of April 11, 2017)
5 Personal income tax and VAT.- Treatment of the lease of a residence to legal entities for use by employees (Directorate General for Taxes. Ruling V0983-17, of April 20, 2017)
6 Inheritance and gift tax.- The 99% reduction cannot be denied for family members not having their principal residence in the autonomous community of Valencia (Central Economic-Administrative Tribunal. Decision of April 20, 2017)

3. Legislation

1 Approval of Budget Law for 2017
2 Approval of self-assessment form 221 for the levy in respect of the conversion of DTAs
3 The Secretary General for Science and Innovation will have the authority to issue the reasoned reports for the purposes of the R&D&I tax credits

4. Miscellaneous