By means of the recent resolution no. 4117/2020, issued on July 24, 2023, the Central Economic-Administrative Court (TEAC) has modified its previous criteria in relation to how it determines the basis for penalties in cases of corporate simulation. This modification is based on the doctrine established in Supreme Court decision no. 770/2023, dated June 8.… Continue reading Tax advisor: The TEAC adjusts its criteria for calculating the sanction base in cases of corporate simulation
Tag: penalties
Tax advisor: How to avoid tax penalties in case of an intermediary company?
Issuing invoices for professional services using an intermediary entity may raise doubts on the part of the tax authorities. The tax authorities tend to consider the creation of Single-Member Limited Liability Company (SLU) as suspicious when there is no real business structure behind it, which could lead to accusations of tax evasion. To avoid possible… Continue reading Tax advisor: How to avoid tax penalties in case of an intermediary company?
Tax advisor: Treasury will have to reimburse large amounts to reverse the penalties of model 720
Treasury will face numerous millionaire refunds after having incorrectly applied the penalties for the declaration of assets abroad. This is due to an unfavorable ruling by the Tax Agency (AEAT), backed by both the Spanish judiciary and the European Court, which considered the fines imposed on taxpayers for hiding assets abroad to be excessive. As… Continue reading Tax advisor: Treasury will have to reimburse large amounts to reverse the penalties of model 720
Tax advisor: What does collaboration with the Tax Administration mean and the consequences of non-compliance
In 2003, the General Tax Law was passed, which emphasized the breach of the duty to provide information to the Tax Administration, giving rise to the current article 203 of the LGT and the corresponding penalties. In the old law, resistance or obstruction was considered an aggravating factor in the grading of penalties and only… Continue reading Tax advisor: What does collaboration with the Tax Administration mean and the consequences of non-compliance