On January 23, 2018, the General Guidelines for the 2018 Tax and Customs Control Plan have been published in the Official State Bulletin. The Guidelines are based on the following four main areas:

I. Fraud prevention. Information and attendance.

As a noteworthy change in 2018 tax period, the Guidelines foresee the implementation of the following software tools:

  • A self-correction system for Personal Income Tax (hereinafter, "PIT") Returns submitted with recovery claims.
  • A Virtual Assistance Service.
  • An Assistance Service to taxpayers in the Immediate Reporting System (hereinafter, "IRS").

Aside from these new inclusions, other points are retained such us the boosting of the electronic and telephonic assistance communication channels, the support programs to tax returns preparations and the mobile application "Tax Agency".

II. The investigation and the verification activities against tax and customs fraud.

The main blocs related to multinational groups, high net worth individuals, concealed business or professional activities and the new business models analysis are retained.

Thus, the major changes are contained within the last two blocs and chiefly comprise:

  • Within the bloc "New Business Models Analysis": the State Tax Agency (hereinafter, the "STA") activities will be focused on the collaborative economies in the context of the e-business.
  • Within the bloc "Other Actions":
    • In the Corporate Tax context: the existence and correct taxation of permanent establishments.
    • In the Valued Added Tax context: the triangular sales control as a new distribution model as well as the control over the taxable persons subjected to special regimes.

Regarding control of customs fraud, excise duty and environmental taxes, the reevaluation of the authorisations granted to Authorised Economic Operators stands out in order to adapt them to the new European Union Customs Code requirements.

Furthermore, control measures over transfer pricing, aggressive tax planning activities or related to tax heavens and opaque jurisdictions are retained, as well as monitoring measures over foundations and nonprofit entities compliance.

Finally, in this second pillar, it is foreseeable that controlling activities over high net worth individuals reach a peak during this tax period as a consequence of three key milestones below:

  • The IRS development during 2017 last semester.
  • The automatic exchange of information on financial accounts located abroad owned by Spanish tax residents within the "Common Reporting Standard" framework, since September 30 of the past tax period.
  • The development, from June 2018 onwards, of the 231 report "Country by Country Information".

Hence, the STA will particularly monitor the proper observance of this disclosure obligations, just as the one regarding the 232 tax declaration "Informative declaration on related transactions and operations or situations related to countries or territories that qualify as tax heavens".

III. Fraud control in the collection stage.

Derivation liabilities procedures are singled out for particular focus while other typical goals are retained such as the control on deferred and fractionated debts and on guarantees provided.

IV. Collaboration between the State Tax Agency and the Tax Agencies of the different Autonomous Regions.

Further actions regarding the information exchange between the STA and the Tax Agencies of the different Autonomous Regions in order to monitor PIT, Wealth and Inheritance and Gift taxation. To achieve this aim, particular attention will be paid to declared residences and their modifications.

This alert is not exhaustive and does not cover every single aspect of referred laws. The information provided in this alert should not be construed as legal advice or legal opinion regarding any specific facts or circumstances.

This alert was provided by Anaford Attorneys, who have taken all reasonable care to ensure that the information contained in this alert is accurate at the time of publication.