Tax Newsletter - June 2019
Spain -
Catalonia brings back its tax on legal entities’ non-productive assets
The Catalan tax, introduced in May 2017, was suspended when the Spanish government filed an appeal with the Constitutional Court and now the suspension has been lifted after the court held it was constitutional.
Judgments
- Corporate Income Tax.- Entities not carrying on an economic activity could not claim the regime for entities of a reduced size either before the current Corporate Income Tax Law
- VAT.- Centralized management of fuel cards used by the entities in a group does not involve the acquisition and resale of fuel by the company managing them
- VAT.- A change to the taxable amount cannot be barred because the debtor that has not paid the debt is no longer a taxable person
- VAT.- The values of transactions with prices paid in kind must be determined according the terms agreed by the parties
- VAT.- The activity of renting a space for the operation of type B slot machines is not exempt from VAT
- Transfer and Stamp Tax.- A deed that cannot be registered because it has defects is not subject to Stamp Tax
- Collection procedure.- Late filing surcharges for tax returns cannot be imposed automatically
- Review procedure.- Costs cannot be ordered to be paid in an economic-administrative proceeding
- Mutual agreement procedures.- The tax authorities may deny the commencement of a mutual agreement procedure if there has been tax fraud
Decisions
- Corporate Income Tax.- Asset values determined by autonomous community authorities are binding on the central government authorities
- Personal Income Tax.- For sums paid to replace pension supplements to be multiyear income they must result from a unilateral step by the company
- Form 720.- Late-filing penalties cannot be imposed for Form 720 if sufficient reasons are not provided for the existence of fault
- Management procedures.- A new limited review procedure cannot be commenced if the first has not ended by reason of an express decision or a time bar
- Collection procedure.- Enforced collection is not allowed for a penalty appealed outside the time limit
- Penalty procedure.- Any penalties imposed without having regard to proof requested by the taxpayer are null and void
Resolutions by the Directorate General of Taxation
- Corporate Income Tax.- The conversion of an agricultural processing company into a limited liability company does not stop the clock on the holding period for the company's shares
- Corporate Income Tax.- An indemnity payment expense is not deductible if it is recognized after it has become statute-barred
- Personal Income Tax.- Income obtained from a capital reduction with repayment of contributions must be reported in the period when the transaction is performed not when the transaction is registered
- Personal Income Tax.- Dividends paid out of a tax refund to a holding company are exempt
- Inheritance and Gift Tax.- Legally separated but not divorced spouses fall into Group II for inheritance and gift tax purposes
- Real Estate Tax.- Exemption from real estate tax for not-for-profit entities is claimable for properties leased to third parties
Legislation
- The voluntary payment period for 2019 tax on economic activities charges has been determined
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