The Chamber begins by pointing out that the entity’s budgets do not support the relationship between the expenses in question and the income. The volume of operations of the company does not demonstrate that the expenses on restaurants, gasoline or gifts are linked to the profits derived from the commercial relationship with the clients. As… Continue reading Tax Advisor: The Superior Court of Justice of Madrid states that, if there is no evidence of a relationship between expenses and income, budgets are not deductible in Corporate Tax
Tag: Europe
Tax advisor: The Superior Court of Justice of Castilla y León believes that another rectification can be requested if a previous request has not been resolved
The Superior Court of Justice of Castilla y León in Valladolid establishes that it is feasible to request an additional rectification of one’s own tax return as long as a previous request for correction has not yet been resolved. In the case addressed, the taxpayer initially requested a self-assessment amendment to adjust the amounts declared… Continue reading Tax advisor: The Superior Court of Justice of Castilla y León believes that another rectification can be requested if a previous request has not been resolved
Tax advisor: The High Court of Madrid rejects the value adjustment made by the Administration for not considering the services as highly personal in the analyzed operation
The High Court of Justice of Madrid has carried out a thorough analysis of the correction undertaken by the Administration, as a result of the detection of related-party transactions. In particular, it has focused on determining whether the actions performed can be considered as highly personal services. In this context, the Chamber has expressed its… Continue reading Tax advisor: The High Court of Madrid rejects the value adjustment made by the Administration for not considering the services as highly personal in the analyzed operation
Tax advisor: Sending burofaxes expressing disagreement with the management of the company after reviewed tax periods does not change the liability of a member of the Board of Directors
The High Court of Justice of Extremadura determines that sending burofaxes expressing disagreement with the management of the company does not exempt the liability of a member of the Board of Directors, even when they are sent after the tax periods in question. In the case under review, the Administration attributed subsidiary liability to the… Continue reading Tax advisor: Sending burofaxes expressing disagreement with the management of the company after reviewed tax periods does not change the liability of a member of the Board of Directors
Tax advisor: Field work is not a related party service; its value must be taken into account in final stocks
The Superior Court of Castilla y León (Burgos) reviews the adequacy of the correction made by the Administration in a related-party transaction under analysis. In the 2014 Corporate Income Tax Compliance Report, it was not considered that the value of field work in linked vineyards should be added to the purchase cost of the grapes,… Continue reading Tax advisor: Field work is not a related party service; its value must be taken into account in final stocks
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 Supreme Court rules on the prohibition to review tax acts according to art. 213.3 of the General Tax Law
Recently, the Supreme Court, in its decision no. 909/2023 of July 4th, has established a doctrine regarding the interpretation of the prohibition to review tax acts according to article 213.3 of the LGT. The interpretative criterion established is that this prohibition does not apply when there is a final court decision which, without analyzing the… Continue reading Tax advisor: The Supreme Court rules on the prohibition to review tax acts according to art. 213.3 of the General Tax Law
Tax advisor: TEAC makes it difficult for new firms to get tax benefits in Corporate Tax
The Central Economic Administrative Court (TEAC) establishes that start-up companies can only benefit from the Corporate Tax rebate at a reduced rate of 15% during the first year of profits and the following year, even if they are in loss in that second year. This is because the TEAC resolved the case of a company… Continue reading Tax advisor: TEAC makes it difficult for new firms to get tax benefits in Corporate Tax
Tax advisor: Provisions approving forms 721, 172 and 173 related to cryptocurrencies are published
The Official State Gazette (BOE) of July 29, 2023 has made public the entry into force, the following day, of two orders related to the informative declarations for virtual currencies: on the one hand, Order HFP/886/2023, of July 26, which approves model 721 called “Informative declaration on virtual currencies located abroad”, and establishes the conditions… Continue reading Tax advisor: Provisions approving forms 721, 172 and 173 related to cryptocurrencies are published
Tax advisor: Tax Authorities allow to deduct the pension plan in the Personal Income Tax for several years
In 2023, the Directorate General of Taxes (DGT) has modified its criteria and now allows to apply a 40% reduction in the IRPF for withdrawals of different pension plans in several years, not limited to the same tax period. This is evidenced by more than 150 binding responses to taxpayer queries issued during this year,… Continue reading Tax advisor: Tax Authorities allow to deduct the pension plan in the Personal Income Tax for several years