https://www.euractiv.com/section/ec...s-order-to-disclose-foreign-assets-to-taxman/
Good news for some especially crypto holders. Seems the tax hell called Spain went too far and got their wrist slapped by EU.
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The European Court of Justice on Thursday (27 January) struck down a regulation in Spain that forces residents to disclose all their foreign assets to the tax service under the threat of heavy fines.
The Luxembourg-based court said the rule violated the free movement of capital within the European Union, arguing that it discriminated between assets abroad and in Spain, and that the fines imposed on those who didn’t declare their foreign assets were disproportionate.
Spain’s tax service︀ was taxing undisclosed assets as if they were revenues and imposed hefty fines, with such︁ payments often exceeding the value of the assets, said Rafael Garcia Millan, a tax lawyer︂ and partner at Cremades and Calvo Sotelo firm.
The court also said the absence of︃ a statute of limitations created legal uncertainty.
The disclosure form, known as Modelo 720, was︄ “a headache” for thousands of foreigners residing in Spain with more than 50,000 euros worth︅ of assets abroad, the legal limit, Garcia Millan said.
The ruling, which cannot be appealed︆ by Spain, effectively halts current investigations of people suspected of failing to disclose assets and︇ would allow those who have already paid fines to demand refunds, he added.
Budget Minister︈ Maria Jesus Montero said the government had been working on correcting the rule for several︉ months and would apply a new version as soon as possible. She added the tax︊ agency had suspended its investigations into ‘Modelo 720’ violations while the ECJ was examining the︋ case.
She said the government had received a total 230 million euros ($256.34 million) in︌ fines under the regulation.
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Good news for some especially crypto holders. Seems the tax hell called Spain went too far and got their wrist slapped by EU.
----- quote start
The European Court of Justice on Thursday (27 January) struck down a regulation in Spain that forces residents to disclose all their foreign assets to the tax service under the threat of heavy fines.
The Luxembourg-based court said the rule violated the free movement of capital within the European Union, arguing that it discriminated between assets abroad and in Spain, and that the fines imposed on those who didn’t declare their foreign assets were disproportionate.
Spain’s tax service︀ was taxing undisclosed assets as if they were revenues and imposed hefty fines, with such︁ payments often exceeding the value of the assets, said Rafael Garcia Millan, a tax lawyer︂ and partner at Cremades and Calvo Sotelo firm.
The court also said the absence of︃ a statute of limitations created legal uncertainty.
The disclosure form, known as Modelo 720, was︄ “a headache” for thousands of foreigners residing in Spain with more than 50,000 euros worth︅ of assets abroad, the legal limit, Garcia Millan said.
The ruling, which cannot be appealed︆ by Spain, effectively halts current investigations of people suspected of failing to disclose assets and︇ would allow those who have already paid fines to demand refunds, he added.
Budget Minister︈ Maria Jesus Montero said the government had been working on correcting the rule for several︉ months and would apply a new version as soon as possible. She added the tax︊ agency had suspended its investigations into ‘Modelo 720’ violations while the ECJ was examining the︋ case.
She said the government had received a total 230 million euros ($256.34 million) in︌ fines under the regulation.
---- quote end
