Taxation: Commission refers Spain to the Court for imposing disproportionate sanctions for failure to report assets held abroad

Madrid 2019.jpg

(José Alejandro Cuffia, Unsplash)

This article is brought to you in association with the European Commission.


The Commission decided on 06 June 2019 to refer SPAIN to the Court of Justice of the EU for imposing disproportionate penalties on Spanish taxpayers for the failure to report assets held in other EU and EEA States (“Modelo 720”).

Currently, Spain requires resident taxpayers to submit information on the assets they hold abroad. This includes properties, bank accounts and financial assets. The failure to submit this information on time and in full is subject to sanctions that are higher than those for similar infringements in a purely domestic situation, and which may even exceed the value of assets held abroad.

The Commission considers that such sanctions for incorrect or belated compliance with this legitimate information obligation are disproportionate and discriminatory. They may deter businesses and private individuals from investing or moving across borders in the Single Market.

Such provisions are consequently in conflict with the fundamental freedoms in the EU, such as the free movement of persons, the free movement of workers, the freedom of establishment, the freedom to provide services and the free movement of capital.

Background

The European Commission opened the EU infringement proceedings in November 2015 with a letter of formal notice, followed by a reasoned opinion on 15 February 2017. Since Spain has not yet complied, the Commission decided today to bring the matter before the Court of Justice of the EU.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

EU foreign investment screening mechanism becomes fully operational

How populist and xenophobic movements in the EU tear apart European businesses and startups

FROM THE FIELD: Persons with disabilities bike towards sustainability

Six months into DR Congo’s deadliest Ebola outbreak, top UN official praises ‘brave’ response effort

Euro celebrates its 20th birthday

Yanukovych attempts a violent and deadly cleansing of Kiev’s center

Things are bad and getting worse for South Africa. Or are they?

Pride in practice: Equality in access to health services for the LGBT community in a third-world country

How the world can ‘reset’ itself after COVID-19 – according to these experts

Why this is the year we must take action on mental health

4 things ISPs can do to reduce the impact of cybercrime

Statement by Cecilia Malmström, Member of the EC in charge of Trade, on the successful conclusion of the final discussions on the EU-Japan Economic Partnership Agreement (EPA) – Brussels, 08 Dec 2017. (Copyright: European Union; Source: EC - Audiovisual Service; Photo: Georges Boulougouris)

The EU and Japan seal free trade pact that will cover 30% of global GDP

We need a global convention to end workplace sexual harassment

This is how we make cancer care sustainable and available for all

This is the biggest risk we face with AI, by Google CEO Sundar Pichai

International tourism is set to plunge by 80% this year – but some regions could recover more quickly

TTIP is not dead as of yet, the 15th round of negotiations in New York shouts

Election 2019: New, Updated seat projection for new Parliament

Tuesday’s Daily Brief: Libya civil war, African displacement, global trade tensions, terrorists’ children ‘secretly detained’, and more

Vaccine hesitancy: a pregnancy related issue?

What’s everyone talking about at Davos 2020?

The five stages of the Chief Digital Officer – and why they often fail

World must do more to tackle ‘shadowy’ mercenary activities undermining stability in Africa, says UN chief

Young? You should work out the entrepreneurial heart before the mind

COVID-19: Budget MEPs call for quick progress on post-2020 contingency plan

EU budget 2019 approved: focus on the young, innovation and migration

EU supports recovery and resilience in Nigeria with additional €50 million

India m2m + iot Forum Hosts Successful 4th Editions of India Smart Cities Forum and India Smart Villages Forum

Novartis and Johnson & Johnson to deprive Europeans of their right to Health

Who’s promised net-zero, and who looks likely to get there?

It’s time to ‘eliminate the scourge of conflict-related sexual violence’, urges UN chief

European Council: Choosing new leaders for the EU betrays efforts for a wider arrangement

Global Citizen – Volunteer Internships

MEPs spell out priorities for the European Central Bank and on banking union

UN chief appeals to G7 leaders for ‘strong commitment’ and political will to tackle climate emergency

People talk less now than during the Cold War, says Merkel at Davos

Conflicting statistics and bad banks haunt the Eurozone

The four top Americans who flew to Europe perplexed things about Trump’s intentions

This new initiative aims to make cybercrime harder – and riskier – to commit

Chauvinism and xenophobia will lead to global assertiveness and more wars

At last a good price for the Greek debt!

Costa Rica has improved its foreign bribery legislation but must strengthen enforcement and close legal loopholes

South Sudan’s women caught up in ‘futile man’s war’ UN gender equality chief

Climate change update: consistent global actions urgently needed as we are running out of time

SDG progress ‘in danger’ of going backwards without change in direction, new UN report reveals

Nicaragua ‘crisis’ still cause for concern amid murder, torture allegations: Bachelet

MWC19 Wrap Up, in association with The European Sting, GSMA’s Brussels Media Partner for the 6th Consecutive Year

The global issue of migration in 2017

We underestimate the power of data at our peril. This is why

This fascinating map shows how food moves around the US

DR Congo: Strengthened effort against Ebola is paying off, but insecurity still major constraint – UN health agency

Further reforms will move Slovakia toward a more innovative and inclusive society

European Parliament marks EU accession prospects for Serbia and Kosovo

IMF: When high yield goes boom

Female leaders warn about the erosion of women’s rights

An analysis of the impacts of climate change on human health

Why responsible consumption is everyone’s business

Here’s what keeps CEOs awake at night (and why it might be bad news for your next job)

Boeing subsidy case: World Trade Organization confirms EU right to retaliate against $4 billion of U.S. imports

Religious violence is on the rise. What can faith-based communities do about it?

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s