Deferred taxes are an accounting resource regulated by international accounting standards, with the purpose of aligning the tax effect and the accounting effect in financial reporting. These taxes provide companies with the ability to adjust their financial statements for technical and accounting purposes. According to International Accounting Standard No. 12, deferred taxes are those that… Continue reading Tax advisor: Deferred taxes, what is their meaning and what information is essential for SMEs and entrepreneurs?
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Tax advisor: The General Directorate of Taxes analyzes how the unilateral salary reduction, annulled by the courts, is taxed in the Personal Income Tax
The binding consultation of the General Directorate of Taxes (V1227-23) dated May 10, 2023, analyzes the taxation in Personal Income Tax (IRPF) of a salary reduction unilaterally imposed by a company and subsequently annulled by a final court ruling, when the company subsequently pays the corresponding arrears and interest. The earnings that the individual receives… Continue reading Tax advisor: The General Directorate of Taxes analyzes how the unilateral salary reduction, annulled by the courts, is taxed in the Personal Income Tax
Tax advisor: The General Directorate of Taxes analyzes the concept of enhancement to duly measure capital gains in Personal Income Tax
The General Directorate of Taxes has addressed the comparison between the concepts of improvement and repair in relation to the amount of capital gains in Personal Income Tax (IRPF) at the time of the sale of a property. This is evidenced in its binding consultations (V0229-23) dated February 13, 2023 and (V0349-23) dated February 20,… Continue reading Tax advisor: The General Directorate of Taxes analyzes the concept of enhancement to duly measure capital gains in Personal Income Tax
Tax advisor: The TEAR of Catalonia violates the “reformatio in peius” principle, harming the claimants, especially the entity that did not challenge certain liquidation agreements
The High Court of Justice of Catalonia examines whether the principle of “reformatio in peius” has been violated due to the decision issued by the Regional Economic-Administrative Court of Catalonia (TEAR). The plaintiff argues that the TEAR’s decision is inconsistent in annulling the entity’s corporate income tax settlement in relation to the eliminated expenses. This… Continue reading Tax advisor: The TEAR of Catalonia violates the “reformatio in peius” principle, harming the claimants, especially the entity that did not challenge certain liquidation agreements
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
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
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?