On 6 June 2017, the Spanish Tax Directorate issued a consultation in which, having posed the question regarding the consequences derived from presenting Model 720 out-of-term without prior notice from the Administration, concludes that the 150% sanction foreseen by the Additional Provision 1 of Law 7/2012 will not be applicable.

It should be noted that Model 720 has its own regulation for the purpose of sanctions derived from its inaccurate presentation or presentation out-of-term (with or without prior notice from the Administration).

In so far as the regulation of PIT (personal income tax return), article 39.2 of Law 35/2006, indicates that an unjustified capital gains is considered to be the late declaration of assets and rights in Model 720, unless the taxpayer certifies that the ownership of the assets and rights corresponds to the declared income or to income obtained during tax periods in which said taxpayer was not considered for the purpose of PIT.

In the aforementioned consultation, the consultant had presented Model 720 out-of-term, incurring in the alleged unjustified capital gains in relation to PIT. The Directorate General for Taxation informs that the 150% sanction shall not apply, but taxpayers will be liable for payment of the corresponding surcharges for late presentation without prior notice from the Administration regulated by article 27 of the General Tax Law.

For further information, please contact:

Jordi Rius i Perramon
jordi.rius@AndersenTaxLegal.es

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