Tax Newsletter - November 2019
Spain -
Personal income tax exemption allowed for termination of senior managers’ employment
Supreme Court (Judicial Review Chamber) concludes that termination by unilateral decision of the employer of a senior management contract is exempt up to seven days’ per year with a limit of six monthly payments.
Judgments
- Tax on increase in urban land value.- Anyone who has assumed the cost of the tax on increase in urban land value is entitled to appeal
- Tax on increase in urban land value.- Supreme Court appears to recognize the option to claim damages from the legislating state in relation to the tax on increase in urban land
- Tax on increase in urban land value.- Not taking into account public deeds of acquisition and sale as a means of proving the absence of an increase in value of the land breaches the right to an effective remedy
- Tax procedure.- If the deduction of VAT is questioned on the basis of conclusions reached in other related proceedings, the taxpayer should have access to the documents in those proceedings
- Administrative procedure.- For taxes payable through assessment, late-payment interest owed to the taxpayer must be calculated on the total liability in the voided assessment
- Audit procedure.- A dawn raid at the taxpayer’s address is only possible if necessary, useful and proportionate in relation to the subject-matter of the audit
Decisions
- Corporate income tax.- Cost of VAT on gifts in kind that is not assumed by the recipient is added to the base for tax credit in respect of gifts
- Personal income tax.- For termination by mutual agreement to benefit from multi-year income treatment there must be a real and actual break in the worker’s relationship
- Nonresident income tax.- If interest is paid to a holding company resident in a member state, but the beneficial owner is not resident in the EU, it is subject to withholding tax
- Collection procedure.- Simple negligence is not a sufficient reason for holding directors jointly and severally liable
- Collection procedure.- Once the liquidation phase has begun administrative enforcement action cannot be taken to collect pre-order claims
- Penalty procedure.- The late filing of Form 720 is not subject to a penalty in itself
- Review procedure.- The circumstances that followed the challenged act, appeared in the file, and are essential for examining it must be taken into account
Resolution requests
- Corporate income tax.- Even though two companies belong to the same business group, the resources used by one of them for its activities cannot be used to determine that an activity is performed at the other, if the two activities are different
- Personal income tax.- Commencement of a professional activity means exclusion from the inbound expatriates regime
- Personal income tax.- An inbound expatriate does not have to be taxed on the surrender of contributions to a pension system made when he was nonresident
- Wealth tax.- Family business relief claimable even if remuneration payments are not received from the directly owned affiliate
- Wealth tax.- An investment in a private equity fund may restrict the family business exemption
Legislation
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