Tax Newsletter - June 2016


June newsletter prepared by professionals from the Tax Department.

  • 1.1 Corporate income tax.- A transaction cannot be held as a fraudulent evasion of the law where the absence of economic reasons has not been evidenced (Supreme Court. Judgment of May 20, 2016)
  • 1.2 Corporate income tax.- The transfer of tax groups without any interruption does not affect the holding obligation for the target of the reinvestment (Supreme Court. Judgment of April 27, 2016)
  • 1.3 Inheritance and gift tax.- An exemption is contrary to the free movement of capital if it entails tax differences according to where the heir is permanently resident (Court of Justice of the European Union. Judgment of May 26, 2016, case C-244/15)
  • 1.4 Inheritance and gift tax.- The family business reduction applies even if the person receiving the income in respect of management functions does not hold shares (Supreme Court. Judgment of May 26, 2016)
  • 1.5 Inspection procedure.- Official notices of findings issued after the term for the length of proceedings has ended must meet minimum requirements to toll the statute of limitations period (Supreme Court. Judgment of May 23, 2016)
  • 1.6 Revenue procedure – The amounts reported and paid over in respect of other taxes cannot be taken from the base for calculating the late filing surcharge (National Appellate Court. Judgment of February 10, 2016)
  • 1.7 Penalty procedure.- The penalties imposed in the reassessment of a nonmonetary contribution that benefitted from the neutrality rules (Supreme Court. Judgment of May 23, 2016)
  • 1.8 Judicial review procedure.- The judgment may be rendered by a judge other than the one that initiated the proceeding and heard the evidence stage where there is no trial (Supreme Court. Judgment of April 27, 2016)
  • 1.9 Judicial review procedure.- The person who acquired the obligation to pay a tax may have standing to contest (Madrid High Court. Judgment of December 22, 2015)
Decisions and Ruling
  • 2.1 Corporate income tax.- Recovery of the depreciation or amortization expense not deducted in 2013 and 2014 where assets are transferred or retired in 2015 or after (Directorate-General for Taxes. Ruling V1864-16, of April 27, 2016) 10
  • 2.2 Corporate income tax.- Any excess withholding borne over and above the amount provided in the tax treaty may not be treated as a tax-deductible expense (Directorate-General for Taxes. Ruling V1637-16, of April 14, 2016)
  • 2.3 Corporate income tax.- There may be valid economic reasons in the nonmonetary contribution of a portfolio by individuals followed by the sale of the interest in the beneficiary entity of the contribution (Directorate-General for Taxes. Rulings V1468-16, of April 7, 2016, and V1506-16, of April 12, 2016)
  • 2.4 Corporate income tax.- The finance costs derived from debt for the distribution of dividends are deductible (Directorate-General for Taxes. Ruling V1486-16, of April 8, 2016)
  • 2.5 Corporate income tax.- Various questions concerning the deduction of gift and entertainment expenses in tax groups (Directorate-General for Taxes. Ruling V1474-16, of April 7, 2016)
  • 2.6 Corporate income tax.- Deduction of the costs derived from foreclosure on a mortgage for buildings delivered as security for a debt of a related company (Directorate-General for Taxes. Ruling V1464-16, of April 7, 2016)
  • 2.7 Corporate income tax.- The timing of recognition for installment transactions cannot be applied to the income generated on a debt acquired at a discounted value (Directorate-General for Taxes. Ruling V1402-16, of April 5, 2016)
  • 2.8 Personal income tax.- Treatment of the amounts paid to the mortgage borrower in respect of the reversal of the collar clause (Directorate-General for Taxes. Rulings V2430-16 and 2431-16, of June 3, 2016)
  • 2.9 Wealth tax.- For the family business exemption the income requirement must be met at the investee with respect to all the income that may be received from other entities which are not directly owned (Directorate-General for Taxes. Ruling V1406-16, of April 6, 2016)
  • 2.10 Inheritance and gift tax.- The obligation to be taxed as a nonresident taxpayer applies in relation to foreign securities held at financial institutions located in Spain (Directorate-General for Taxes. Ruling V1405-16, of April 6, 2016) 14
  • 2.11 VAT. Provision of pro bono services (Directorate-General for Taxes. Ruling V0920-16 of March 10, 2016)
  • 3.1 The voluntary payment period for the national and provincial tax charges on economic activities for fiscal year 2016
  • 3.2 Changes in the management of appointments of representatives and in the registration and management of successions and of the legal representatives of minors and incapacitated persons for the performance online of formalities and steps at the tax agency
  • 3.3 Approval of the corporate income tax and nonresident income tax return forms for fiscal year 2015
  • 3.4 Approval and rectification of various IVA forms
  • 3.5 Council Directive (EU) 2016/856 of 25 May 2016 on the common system of VAT, as regards the duration of the obligation to respect a minimum standard rate
  • 4.1 Proposal for a Council Directive against tax avoidance practices
  • 4.2 Service tax on water and drainage services
  • 4.3 The compensation received by directors in respect of non-management activities does not have to appear in the bylaws
  • 4.4 Automatic exchange of country-by-country reports 




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