Tax Newsletter - March 2020
Spain -
COVID-19: Ordinary time periods still apply for filing central government tax returns
Due to the situation caused by the spread of COVID-19, abundant legislation is being published with tax implications, and in other areas, aimed at softening the effects of the situation created for companies and citizens.
Judgments
- Freedom of establishment.- Progressive tax on turnover that mainly affects subsidiaries of large foreign companies is not contrary to the freedom of establishment
- Freedom of establishment.- Legislation preventing deduction of tax losses by a company that transfers its tax residence to another Member State is not contrary to the freedom of establishment
- Freedom to provide services.- Legislation establishing a more onerous penalty regime for providers established in other Member States is not contrary to the freedom to provide services
- Stamp tax.- Changes to mortgage loans that affect more than just the interest rate or the repayment period are exempt from stamp tax
- Tax elections.- Not claiming a tax benefit on a return does not imply a tax election
- Inspection procedure.- Assessments on an agreed basis cannot be used as independent proof, but rather as a means to confirm the other items of proof
- Review procedure.- An appeal cannot be rejected if the taxpayer has followed the system of appeals indicated by the tax authorities in the assessment
Decisions
- Nonresident income tax.- Nonresident funds are entitled to a refund of withholdings incurred indirectly
- Personal income tax.- Capital gain with known origin is not an undisclosed capital gain, even though the reason for its receipt is not known
- Personal income tax.- ‘Tax’ capital loss occurring on a gift is deductible on giver’s personal income tax return
- Management/refund procedure.- Tax authorities must pay interest on interest not refunded within time limit
- Audit procedure.- Tax authorities cannot start a new audit on a previously audited issue if no new facts or circumstances have first been discovered
- Penalty procedure.- The penalty for not reporting an unjustified gain on a personal income tax return cannot be justified by the mere failure to file form 720
Resolution requests
- Corporate income tax.- The absorption of inactive companies may be found to have been performed on valid grounds, depending on the circumstances
- Corporate income tax.- Lease expense is deductible even if the revenue is exempt in the hands of the lessor
- Personal income tax.- Worker’s reinstatement means returning the received severance and recovering the paid tax by filing a correction return
- Inheritance and gift tax.- A gift of properties to nonresidents benefits from the legislation of the autonomous community where the property is located; a gift of cash benefits from the legislation where the money was located for the highest number of days over the last five years
- Wealth tax.- Impact of cash from sale of shares on family business exemption
Legislation
- Approval of the 2019 personal income tax and wealth tax return forms
- Amendment of Form 349 for the recapitulative statement of intra-Community transactions
- Change to Form 189 for the information return on securities, insurance and income
- Approval of the trading values in the fourth quarter of 2019 for traded securities for wealth tax purposes
- Approval of Form 140 for requesting the advance payment of personal income tax credits for maternity
- Change to timing of recognition rule applicable to aid for hiring young people in the farming business
Miscellaneous
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