Main novelties of recent Law against tax fraud in Spain

17 Dec Main novelties of recent Law against tax fraud in Spain

The New law came into force on October 31st, 2012.

• Payments over EUR 2,500 are not allowed in cash when either the payer or the receiver is an entrepreneur (cases of payment to bank entities are excluded).  However, the limit shall be EUR 15,000 in cases when the payer is an individual who does not have Spanish tax residency and is not acting as an entrepreneur.
• However, in case any payer/receiver informs the Tax authorities about having paid/received cash exceeding the limits to/from the other, the informant shall be forgiven, while the accused one will face a penalty of 25%. A information of this kind, simultaneously served by payer and receiver, will not exonerate them from their respective penalties.
• Several important novelties about VAT in cases of companies in Administration about inverting the obligator taxpayer
• Company directors are to be declared secondarily liable for tax debts in cases of companies that do not have assets but regularly file their tax returns with payment equal to cero.
• The law establishes a specific obligation to inform about assets and rights situated outside Spain and implements penalties in case of non fulfillment.
• There is a new approach about sales of shares from companies owning real estate assets. The exemption of VAT or Transfer tax in such transfers is narrowed and is now generically excluded in cases when the purpose of these is to elude those taxes.