Tax Newsletter – November 2018
Spain -
Tax auditors are only allowed to review the neutrality regime at the company electing it
A TEAC decision rejected the argument that the tax agency is allowed to audit the shareholders that made a contribution of a line of business to a company because verification of the requirements to elect the special deferral regime must be carried out at the beneficiary company.
Judgments
- Controlled transactions.- Taxable persons not having a duty to document their controlled transactions may be subject to penalties under the general penalty regime in the General Taxation Law
- Corporate income tax.- Banks’ input VAT on goods purchased to be delivered as income in kind to customers is not deductible
- Transfer and stamp tax.- The tax base in the winding up of a community property system is the amount allocated to each owner
- Tax on increase in urban land value.- The expenses associated with a property purchase increase the cost price
- Requests for information.- A general request for information on the legal profession as a whole is precluded by the law
- Cadaster procedure.- The cadaster is not allowed a third chance to value a property
- Review procedure.- The tax authorities must apply the accepted interpretations for one tax to other taxes
Decisions and rulings
- Personal income tax.- The burden of proof in relation to tax on per diems must lie, generally, with the payer
- Personal income tax.- Income obtained from the sale in installments of a client list after ceasing operations may be recognized as the price is collected
- VAT.- Clarification of the requirements for the exemption in financial transactions and in ancillary services to insurance mediation companies
- Administrative procedure.- Notices may be served on the person appearing as director of a company at the commercial registry
Legislation of interest
- Latest amendments to the VAT Directive regarding the reverse charge mechanism and the applicable VAT rates on electronic books
- Lenders will pay stamp tax on mortgages and will not be able to deduct it for corporate income tax purposes
- Approval of the reform of the economic and tax regime of the Canary Islands
- Amendments to forms 303, 322, 390 and 347
- Approval of implementing regulations for various articles of the Regulations on Excise and Other Special Taxes
Miscellaneous
- The Tax Agency clarifies the procedure for yachts entering and leaving EU Customs territory
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