Tax Newsletter - March 2019
Spain -
Supplementary returns filed to implement tax auditors’ interpretation cannot result in surcharges
National Appellate Court concludes in two judgments that surcharges cannot be assessed where the supplementary returns are filed to implement a tax audit interpretation in later years falling outside the scope of that audit.
Judgments
- Corporate income tax.- Fair price must be reported in the fiscal year when the property is occupied
- Nonresident income tax.- The CJEU reinterprets eligibility for exemptions in parent-subsidiary and interest and royalties directives
- VAT.- VAT refund may be denied if formal requirements are fulfilled after assessment becomes final
- Tax on increase in urban land value.- Payment of debts with property is exempt even if the transferee is not the mortgagee
- Cadastral valuations.- In certain exceptional scenarios the cadastral value may be challenged when appealing against real estate tax assessments
- Tax procedure.- Information obtained from information collection procedure is only allowed to be used in another procedure if the first has expired
Decisions
- VAT.- Where the price agreed with the tax authorities is inclusive of VAT, the excess output VAT must be refunded to the supplier
- Audit procedure.- TEAC alters its interpretations on the calculation of certain audit time periods
- Economic-administrative procedure.- It is mandatory to join economic-administrative claims filed against an assessment and a penalty if failure to join them alters jurisdiction
- Requests for information.- A general request for information on the legal profession as a whole is precluded by the law
Rulings
- Personal income tax.- Amounts yet to be decided in arbitral award are reported when the award becomes final
- Personal income tax.- The ratchet is considered newly generated where its determination depends on a board resolution
- Personal income tax.- Multiyear income obtained before 2015 affects the income obtained in later years
- Personal income tax.- Income from work performed before moving to Spain is not treated as obtained there
- VAT.- VAT group treatment is not applicable to two Spanish subsidiaries of a non-established parent company
Legislation of interest
- Change to stamp tax on deeds for loans secured with a mortgage
- Approval of the 2018 personal income tax and wealth tax return forms
- Changes to the return forms for the tax on fluorinated greenhouse gases
- Incentives related to real estate tax and transfer tax in the repealed royal decree-law on housing and rental have been brought back
- Approval of the average trading values in the fourth quarter of 2018 for traded securities for wealth tax purposes
Miscellaneous
- European Union updates black list and grey list of non-cooperative jurisdictions for tax purposes
- Spanish finance authority releases notice on how to legalize interposed companies
- Leave granted for cassation appeal on the interpretation of effective “use or enjoyment” for certain services to be subject to Spanish VAT
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