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No changes expected in Spain for Tax form 720

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26 Dec 2018

The financial press in Spain has recently echoed the report from the European Commission dated 15 February 2017 stating that the legislation that regulates the declaration of assets held abroad – known as Form 720 – may be deemed illegal.

The contents of this report have been kept confidential until the Ministry of Finance had to disclose it at the request of the National High Court (Audiencia Nacional) on October 25 of 2018 to the tax advisers of a taxpayer who was sanctioned for declaring untimely.

The European Commission considers in its motivated report that this regulation, approved by the last Government, “establishes a tax declaration regime under Model 720 that seems discriminatory and disproportionate in light of the relevant jurisprudence of the Court of Justice “

The Ministry of Finance does not intend to modify the current regulation of the declaration of property abroad, pending what the courts decide, according to what María Jesús Montero, current Minister of Finance, said the day after the press release.

“It is a technical problem that affects a law that is absolutely legal because it has not been contested in the Constitutional Court, so we must wait to hear the word of the courts”, she said.

JC&A Abogados referred to said report back on 28 February 2017 (article), just 8 days after it was published, in our attempt to provide accurate relevant information to our clients beforehand.

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