In Personal Income Tax, if a taxpayer carries out an economic activity, late payment interest is a deductible expense

The issue of appeal focuses on determining whether, in the context of Personal Income Tax (IRPF), late payment interest, whether resulting from a liquidation in a process of verification of income related to the economic activity of an individual or those generated by the suspension of the execution of a contested administrative act, can be… Continue reading In Personal Income Tax, if a taxpayer carries out an economic activity, late payment interest is a deductible expense

New jurisprudence on asset-holding companies

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According to the Audiencia Nacional in the present case, it can be inferred that, given the circumstances and evidence presented, the plaintiff company is not carrying out an economic activity as defined by the regulations.  Therefore, it cannot be said that more than 50% of its assets are dedicated to an economic activity. The Judgment… Continue reading New jurisprudence on asset-holding companies

Tax advisor: In Personal Income Tax, if a taxpayer carries out an economic activity, late payment interest is a deductible expense

The issue of appeal focuses on determining whether, in the context of Personal Income Tax (IRPF), late payment interest, whether resulting from a liquidation in a process of verification of income related to the economic activity of an individual or those generated by the suspension of the execution of a contested administrative act, can be… Continue reading Tax advisor: In Personal Income Tax, if a taxpayer carries out an economic activity, late payment interest is a deductible expense

Tax advisor: Is it necessary to have an employee for renting to be considered an economic activity?

The great interest of savers and investors in real estate assets has tax implications in Spain, as it is necessary for real estate leasing activities to be considered as an economic activity. Without this qualification, tax benefits such as exemptions and tax burden reductions are lost. For example, in the case of Personal Income Tax… Continue reading Tax advisor: Is it necessary to have an employee for renting to be considered an economic activity?

Tax advisor: The presence of simulation through the artificial division of the economic activity of the appellant has not been demonstrated.

The High Court of Justice of Madrid, in its judgment of March 1, 2023, examines the possible artificial division of the appellant’s economic activity for indications of simulation. However, before addressing the merits of the dispute, the Chamber rules on the extension of the term that has occurred in the inspection process. Thus, the Chamber… Continue reading Tax advisor: The presence of simulation through the artificial division of the economic activity of the appellant has not been demonstrated.