Tax Newsletter - September 2016

09 / 29 / 2016

Download Tax Newsletter - September 2016

September newsletter prepared by professionals from the Tax Department.

Judgments

1.1 Court fees. Reversed in a great many appeals (Constitutional Court. Judgment of July 21, 2016; and DGT ruling V3844-16, of September 13, 2016)
1.2 Corporate income tax.- EU law precludes legislation which taxes the gross income of institutions without deduction of expenses, whereas resident institutions are taxed on their net income (Court of Justice of the European Union. Judgment of July 13, 2016, case C-18/15)
1.3 Corporate income tax.- R&D&I tax credit cannot be claimed for outside service costs where the enterprise acted simply as mediator (National Appellate Court. Judgment of June 2, 2016)
1.4 Personal income tax.- The free movement of capital does not preclude a member state from not extending the benefit of the advantageous treatment accorded as a result of a tax treaty to parties to whom that treaty does not apply (Court of Justice of the European Union. Judgment of June 30, 2016, case C-176/15)
1.5 Personal income tax.- Unconstitutionality of the fully retroactive effect provided for stock options between 2004 and 2010 (Constitutional Court. Judgment of June 23, 2016)
1.6 Personal income tax.- The receipt of revenues is not necessary to be able to claim the maternity tax credit if the taxpayer carries on a self-employed activity (Galicia High Court. Judgment of February 24, 2016)
1.7 Inheritance and gift tax.- EU law does not preclude the legislation of a member state providing for a reduction when the estate contains assets which have already formed part of an inheritance on which inheritance tax was paid in that state (Court of Justice of the European Union. Judgment of June 30, 2016, case C-123/15)
1.8 Inheritance and gift tax.- An assessment prepared as a precautionary measure when documents had already been filed to make an assessment cannot result in the imposition of surcharges for the late-filing of a tax return (Catalonia High Court. Judgment of December 3, 2015)
1.9 Information collection procedure.- Requesting from a school invoices issued to a parent related to personal data of their children does not violate the right to privacy or data protection (Supreme Court. Judgment of July 13, 2016)
1.10 Audit procedures.- The termination of proceedings in a management procedure does not prevent an audit later being initiated on the same subject-matter (Madrid High Court of Justice. Judgment of March 18, 2016)
1.11 Economic-administrative procedure.- A liability clause in a private agreement does not confer a legitimate interest to bring economic-administrative claims (National Appellate Court. Judgment of May 19, 2016)
1.12 Enforcement procedure.- The repayment of a tax held contrary to EU law must observe the principles of sincere cooperation, equivalence and effectiveness (Court of Justice of the European Union. Judgment of June 30, 2016, case C-200/14)

Decisions and rulings

2.1Corporate income tax.- Tax treatment of Brazilian juros net equity payments (Directorate General for Taxes. Ruling V2960-16 and V2962-16, of June 27 2016)
2.2 Corporate income tax.– Various ruling requests on the application of the transitional regime for ETVEs, foreign-securities holding companies, and of article 21 of the Corporate Income Tax Law –LIS- (Directorate General for Taxes. Ruling V2626-16, of June 13, 2016)
2.3 Corporate income tax.– Limit on the loss generated by the partial transfer of shares in a company in the tax group which has generated a net operating loss (Directorate General for Taxes. Ruling V2621-16, of June 13, 2016)
2.4 Corporate income tax.- Dilution of shares in holding period as a result of a merger does not imply forfeiture of tax credit for reinvestment (Directorate General for Taxes. Ruling V2609-16, of June 13, 2016)
2.5 Corporate income tax.- A spinoff followed by a transfer may cast doubts over the reasons for the spinoff (Directorate General for Taxes. Ruling V2572-16, of June 10, 2016 )
2.6 Corporate income tax.- A reorganization targeted at a subsequent gift does not have valid economic reasons (Directorate General for Taxes. Ruling V2535-16, of June 9, 2016)
2.7 Corporate income tax.– An expense recognized in a reserves account in respect of prior years’ depreciation charges will be deductible if it does not relate to a statute-barred year (Directorate General for Taxes. Ruling V2425-16, of June 3, 2016)
2.8 Personal income tax.- The 60% reduction for a residential lease applies where, while the lessee is a legal entity, it is evidenced that the property was used as a residence for individuals (Central Economic-Administrative Tribunal. Decision of September 8, de 2016)
2.9 Personal income tax.- Inbound expatriates regime: there must be a causal relationship between assignment and commencement of the employment relationship (Directorate General for Taxes. Ruling V2777-16, of June 21, 2016, among others)
2.10 Personal income tax.- Losses cannot be offset against income which has all been obtained from several gifts (Directorate General for Taxes. Ruling V2481-16, of June 7, 2016)
2.11 Transfer and stamp tax.– The resumption of a company’s operations in the liquidation phase is not liable to transfer and stamp tax (Directorate General for Taxes. Ruling V2464-16, of June 7, 2016)
2.12 Data verification and limited review procedures.- After a data verification procedure has been terminated or rendered null and void as a matter of law, a limited review procedure may be initiated if not precluded by the limitation period (Central Economic-Administrative Tribunal. Decision of July 5, 2016)
2.13 Audits.- Audit work continuing after the end of the maximum term for the audit had ended does not per se toll the limitation period (Central Economic-Administrative Tribunal. Decision of July 5, 2016
2.14 Economic-administrative procedure.- If records of administrative proceedings fail to include the documents on which the correction was based, the assessment is null and void and reversion of the procedure is not allowed (Central Economic-Administrative Tribunal. Decision of July 15, 2016)

Legislation

3.1 Contents of the preliminary report for acts of disposition in litigation by the central government authorities
3.2 Approval of Form 589 for the tax on the value of the extraction of gas, oil and condensates

Miscellaneous

4.1 Spain undertakes to commence automatic exchange of financial account information in September 2017
4.2 Amending Protocol to the Agreement between the EU and Monaco for the application of OECD standards for automatic exchange of information

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