Tax Newsletter - November 2016

11 / 30 / 2016

Download Tax Newsletter - November 2016

November newsletter prepared by professionals from the Tax Department.

Case Law

1.1 Corporate income tax.- Late-payment interest is deductible under the current LIS also (Aragon High Court. Judgment of July 20, 2016)
1.2 Corporate income tax.- Federative rights may be transferred and assigned to individuals and legal entities other than sport entities (National Appellate Court. Judgment of July 12, 2016)
1.3 Personal Income Tax. Maternity benefit paid by the social security authorities is exempt (Madrid High Court. Judgment of July 6, 2016)
1.4 VAT.- The right to a deduction of VAT cannot be disallowed simply because the invoice has formal defects (Court of Justice of the European Union. Judgment of September 15, 2016 on Barlis 06 case C-516/14)
1.5 Inheritance and Gift Tax.- Unregistered de facto partners can enjoy the benefits provided in the Inheritance and Gift Tax law for married partners (Madrid High Court. Judgment of May 12, 2012)
1.6 Audit procedure.- The correction to tax must be complete even if it benefits the taxable person (National Appellate Court. Judgment of June 16, 2016)
1.7 Penalty procedure.- The grounds for the penalty cannot be based on the personal circumstances of the infringing person (Supreme Court. Judgment of October 26, 2016)
1.8 Review procedure.- Judgments cannot be produced in a court proceeding after the conclusions stage (Supreme Court. Judgment of October 24, 2016)

Judgments and rulings

2.1 Corporate income tax.- Change of the fiscal year in a consolidated tax group (Directorate General for Taxes. Ruling V3917-16, of September 15, 2016)
2.2 Corporate income tax.- A provision for bonuses is deductible when their payment occurs (Directorate General for Taxes. Ruling V3908-16, September 15, 2016)
2.3 Corporate income tax.- Tax on an indemnity clause in connection with a business combination (Directorate General for Taxes. Ruling V3872-16, of September 13, 2016)
2.4 Corporate income tax.- A silent investment agreement (contrato de cuentas en participación) is not a corporate income tax payer (Directorate General for Taxes. Ruling V3861-16, of September 13, 2016
2.5 Corporate income tax.- A selective distribution is not allowable under the tax neutrality regime (Directorate General for Taxes. Ruling V3843-16, of September 12, 2016)
2.6 Corporate income tax, personal income tax and nonresident income tax.- Taxation and withholdings in connection with a capital reduction through redemption of shares (Directorate General for Taxes. Ruling V3840-16, of September 12, 2016)
2.7 Corporate income tax.- Partially claiming the exemption for dividends and capital gains where the indirect ownership interest is below 5% (Directorate General for Taxes. Ruling V3830-16, of September 12)
2.8 Collection procedure.- An enforced collection interlocutory order issued after failure to admit the stay for consideration is valid even if its non-admission had been challenged (Central Economic-Administrative Tribunal. Decision of October 27, 2016)
2.9 Collection procedure.- Attachment procedures on payments into the debtor’s account from the use of POS terminals or data phones are lawful (Central Economic-Administrative Tribunal. Decision of October 27, 2016)
2.10 Review procedure.- A judgment rendering an assessment void renders invalid any penalty imposed, even if it has become nonappealable (Central Economic-Administrative Tribunal. Decision of October 20, 2016)
2.11 Penalty procedure.- The facts and legal grounds on which the existence of fault is founded must be recorded in the penalty proceeding and penalty decision (Central Economic-Administrative Tribunal. Decision
of September 8, 2016)

Legislation

3.1 Form 289, annual information return on financial accounts in the field of mutual assistance
3.2 Minimum prepayment for taxpayers that apply the RIC, the special regime for producers of tangible goods, the ZEC and the tax reduction for income obtained in Ceuta or Melilla

Miscellaneous