On 23 January 2018, by virtue of the mandate set out in Article 116 of the General Tax Law, the Resolution of 8 January 2018 was published in the Official State Gazette (BOE), approving the general guidelines of the 2018 Annual Tax and Customs Control Plan.
The plan is structured around four main areas:
- Fraud prevention. Information and assistance.
The Spanish Tax Agency has designed a new help model that seeks to reduce the administrative burdens faced by taxpayers and encourage voluntary compliance with tax obligations, thus preventing non-compliance.
To this end, new support tools will be provided, such as the “Virtual Assistant”; assistance will be provided to taxpayers enrolled in the Immediate Supply of Information System (SII) and the system for the self-correction of personal income tax returns claiming a refund will be promoted.
- Investigation and verification actions for tax and customs fraud.
The Spanish Tax Agency has expanded and will continue to develop powerful new information sources in the fight against fraud, dramatically increasing the information received by the Tax Agency.
In this respect, it should be noted that special control will be exercised:
- In regard to multinational groups: the Spanish Tax Agency will pay special attention to the analysis and control of transfer pricing in transactions involving intangible assets, corporate restructuring and intra-group financing; aggressive tax planning using hybrid structures; the detection of permanent establishments in Spain belonging to non-resident entities and transactions with entities that are residents in tax havens
- In regard to natural persons: the number of taxpayers targeted for investigation will be increased using new selection procedures for people who show signs of a lack of transparency; the control of assets abroad will be stepped up (with the exchange of information obtained from forms 720 and 750); more information will be available regarding financial accounts in third countries held by residents in Spain thanks to the new Common Reporting Standard (CRS) Project on the automatic exchange of information between jurisdictions; investigation of assets and rights located in Spain, of attempted evasion through legal persons such as professional associations and of attempted fraud through the misrepresentation of the tax residence, as well asthe detection of hidden income and assets in tax havens.
- New business models: a key priority will be to control the new means of providing services known as the “Gig Economy”, as well as the new models of distribution such as “Triangulation of Shipments” or “Stores of Stores” installed on websites; fraud control using Big Data Analytics, as well as in the use of electronic wallets and instant transfer systems, such as Blockchain and, in particular, Cryptocurrency (Bitcoins).
- VAT control activities: particularly VAT in intra-community transactions; preventive control measures of the Intra-Community Operators Registry; verification and investigation of imports of consumer products, textiles and others of Asian origin; intra-Community VAT fraud in the vehicle sector.
- In regard to Corporate Income Tax: special attention will be given to consolidated tax groups, the offsetting of negative tax bases and related-party transactions; control of foundations and non-profit organizations.
- Concealment of business or professional activities and abusive use of companies: close attention will be paid to the concealment of income, increasing the presence of the Administration in sectors and business models that have a high level of underground economy; appearances at company headquarters; monitoring of the correct application of VAT or the abusive use of legal persons for the sole purpose of channeling the income of natural persons.
- Fraud control in the collection stage.
In the Collection Area, priority will be given to the adoption of preventive measures, derivations of responsibility and the investigation of assets in order to enforce the collection of tax debts, as well as the follow-up of apparent insolvencies and control of default debtors. To this end, impetus will be given tothe use of the SII system and cooperation with other Public Administrations. Special attention will be given to the prosecution of crimes against Public Finance and smuggling.
- Collaboration between the Spanish Tax Agency (AEAT) and the Tax Administrations of the Autonomous Communities.
The Spanish Tax Agency will continue to give Regional Tax Agencies access to the information on the assignment of taxes that is necessary for proper tax management. The exchange of specific information will be enhanced in regard to certain events, transactions, securities, assets or income of tax significance relevant to the management of taxes of any of the Administrations, particularly to combat fraud, such as information relating to large families, degrees of disabilities, stated residences and modifications.
Lastly, control will continue to be exercised in regard to customs fraud and fraud involving special and environmental taxes.
The Single Customs Window will be consolidated and controls will be strengthened in customs facilities to combat customs fraud; verification and reassessment activities will be conducted for customs authorizations in force at 1 May 2016 and on compliance with entry requirements for the status of Authorized Economic Operator; customs authorizations that have temporary storage facilities will be verified; post-import controls will be reinforced, enhancing the control over tax warehouses and warehouses other than customs warehouses to prevent these systems from being used for tax evasion purposes.
Arrabe Integra
Tax Department