European Commission opens infringement proceedings against Spanish tax form 720
29 Dec. 2015
On November 24, the EC announced the commencement of proceedings in respect of the information return on assets and rights located abroad to be contrary to European Union Law. The Commission´s decision is based on:
- The establishment of disproportionate penalties for late filing of this return, as compared to the regulatory penalties applicable to domestic tax infringements;
- The establishment of a different and longer statute-of-limitation period, which exceeds the 4-year term in case of unjustified capital gains, attributed to the last non-statute-barred year meaning that there is no limitation, subject to an additional penalty of 150%.