The Spanish tax authorities will pay extra attention this year to tax returns inspections in the case of large assets, financial technologies, online sales and crypto currency, according to the Tax Inspection Plan 2019.
Spanish tax authorities focus on assets, fintech, e-commerce and cryptocurrencies
The definitive implementation of a new fiscal risk management tool will also take place this year, creating risk groups and ensuring better follow-up of the results of the control actions carried out by the tax authorities.
FOCUS ON ASSETS ABOVE 10 MILLION
In the course of 2019, the number of wealthy individuals who are selected for inspection will be expanded with the help of this new selection tool. In addition, a new Central Unit for Coordination of Control of Relevant Assets has been created.
The unit will use specific research channels that these profiles require due to special characteristics. For example, they may have stationed part of their property abroad. According to the tax authorities, advanced analysis mechanisms are needed to understand the complex financial and business networks that are examined in these cases.
The new unit will be assisted by a powerful big data computing tool that sets no limits to taxpayers who may be subject to control: an investigation will be opened based on the level of tax risk and not on the estimated equity. However, the tax authorities indicate that they will pay special attention to checking assets above 10 million euros.
FOREIGN BANK ACCOUNTS
The Tax Authorities will also continue to improve the existing internal mechanisms that enable rapid processing of the tax information that is automatically received from the responsible tax administration within the framework of Country by Country Reports. This concerns information regarding bank accounts abroad in the name of taxpayers with tax addresses in Spain.
The Tax and Customs Administration also intends to continue to improve the existing tools for analyzing information that is automatically supplied from abroad, such as work income or pension payments. The aim is to prevent that these proceeds from abroad aren’t notified to the Spanish tax authorities.
In addition, actions will be developed to check whether financial entities meet their obligations when identifying the tax residence of certain account holders.
FINTECH, E-COMMERCE, CRYPTO CURRENCY
In addition to large assets, the Spanish tax authorities will also pay special attention to fintech, e-commerce and crypto currency this year. The plan includes actions regarding new distribution models, in particular in the field of electronic commerce, such as the so-called “shipping triangulation”, where sales from one company are delivered by another company, and “stores of stores” constructions on websites. Attention will also be paid to new payment methods.
Regarding to the identified tax risks in transactions carried out with crypto currency, the Spanish tax authorities this year will analyze the information from 2018 and, if necessary, draw up criteria for obtaining additional information.
Source: Spanish financial newspaper Expansion
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