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Tax Newsletter - October 2016

11/14/2016
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October newsletter prepared by professionals from the Tax Department.

Case Law
 
  • 1.1 Personal income tax .- On the exemption for work performed abroad (Galicia High Court. Judgment of June 3, 2015; Andalucía High Court. Judgment of February 26, 2016; and Madrid High Court of June 6, 2016) 
  • 1.2 Transfer and stamp tax.- The taxable person in the provision of unilateral mortgages to the tax authorities is the tax authorities themselves (Supreme Court. Judgment of September 26, 2016)
  • 1.3 Inheritance and gift tax.- Affinity ties do not disappear when the person serving as the connection dies (Supreme Court. Judgment of July 14, 2016)
  • 1.4 Inheritance and gift tax.- Expenses in respect of executor’s fees are not deductible (Catalonia High Court. Judgment of February 1, 2016)
  • 1.5 Real estate tax.- Article in the local authority legislation for Alcalá de Henares determining a surcharge for vacant residential properties rendered null and void (Madrid High Court. Judgment of April 27, 2016)
  • 1.6 Administrative procedure.- Remotely sent notifications containing blank pages held null and void due to misleading the taxpayer. (National Appellate Court. Judgment of July 7, 2016)
 
Judgments and rulings
 
  • 2.1Corporate income tax.- Deduction of goodwill arisen before January 1, 2002 (Directorate General for Taxes. Ruling V3508-16, of July 22, 2016)
  • 2.2 Corporate income tax.- A cross-border merger may be sheltered by the tax neutrality regime (Directorate General for Taxes. Ruling V3496-16, of July 22, 2016)
  • 2.3 Corporate income tax.– Impairment losses on shares reversed following recovery of their value. Impairment losses deducted and not deducted (Directorate General for Taxes. Ruling V 3459-16, of July 20, 2016)
  • 2.4 Corporate income tax.- A valid economic reason held to exist in a restructuring process conducted to set up a Spanish REIT (SOCIMI) (Directorate General for Taxes. Ruling V3330-16, of July 15, 2016)
  • 2.5 Corporate income tax.– R&D&I tax credit and exercising the advanced payment option (Directorate General for Taxes. Ruling V3281-16, of July 13, 2016)
  • 2.6 Corporate income tax.– Not for profit entities: indirectly conducting activities in the public interest is valid (Directorate General for Taxes. Ruling V3277-16, of July 13, 2016)
  • 2.7 Corporate income tax.- Even if some of the employees are not transferred, there may still be a line of business (Directorate General for Taxes. Ruling V3150-16, of July 07, 2016)
  • 2.8 Corporate income tax.– Deduction of late-payment interest, VAT charges and order to pay costs in connection with a tax offense (Directorate General for Taxes. Ruling V3145-16, of July 6, 2016)
  • 2.9 Corporate income tax.– Eligibility for the exemption on the transfer of a holding company with an indirect investment in its subsidiaries higher than €20 million (Directorate General for Taxes. Ruling V3141-16, of July 6, 2016)
  • 2.10 Corporate income tax.- The compensation for the sole director’s senior management activities does not have to appear in the bylaws to be deductible (Directorate General for Taxes. Ruling V3104-16, of July 5, 2016)
  • 2.11 Wealth tax.– Valuation of shares of Spanish corporation (sociedad anónima) in an insolvency proceeding (Directorate General for Taxes. Ruling V3614-16, of August 24, 2016)
  • 2.12 Inheritance and gift tax.- On the requirements for the reduction applicable to the transfer of a family business (Central Economic-Administrative Tribunal. Decision of September 15, 2016)
  • 2.13 Inheritance and gift tax.- Exempt assets must be included to calculate the preexisting property and the family business must be included in personal items (Central Economic-Administrative Tribunal. Decision of September 15, 2016)
  • 2.14 Inheritance and gift tax.- The capitalization of earnings cannot be used as a valuation method (Central Economic-Administrative Tribunal. Decision of September 15, 2016)
  • 2.15 Inheritance and gift tax.- A report submitted by the taxable person on the value of personal items is sufficient to undermine the automatic presumed valuation mechanism contained in the law (Central Economic-Administrative Tribunal. Decision of September 15, 2016)
  • 2.16 VAT.- The filing of the annual summary does not stop the limitation period (TEAC. Decision of September 22, 2016)
  • 2.17 Tax on economic activities.– The net sales/revenues figure for the purposes of the exemption from the tax on economic activities will be that for the whole horizontal group with the same director (Directorate General for Taxes. Ruling V3053-16, of July 1, 2016)
  • 2.18 Management procedure.- The party with the obligation to pay the debt of another debtor is validly entitled to apply for a refund of incorrect payments (Central Economic-Administrative Tribunal. Decision of September 29, 2016)
  • 2.19 Economic-administrative procedure.- The lodging of an ordinary appeal to a higher administrative body does not automatically stay the enforceability of the economic-administrative claim (Central Economic-Administrative Tribunal. Decision of September 8, 2016)
  • 2.20 Penalty procedure.- The non bis in idem principle does not prevent two rulings on the same facts (Central Economic-Administrative Tribunal. Decision of September 22, 2016)
  • 2.21 Penalty procedure.- Failure to file form 240 within the time period must be penalized with €20 per item of information (Central Economic-Administrative Tribunal. Decision of September 22, 2016)
  • 2.22 Penalty procedure.- The base for the penalty for failure to make payment is the amount that was not paid even if it was later corrected (Central Economic-Administrative Tribunal. Decision of September 8, 2016)
 
Legislation
 
  • 3.1 Corporate income tax prepayments
  • 3.2 Amendments made to forms 190, 117 and 390
  • 3.3 Remote filing of documents and calendar of non-working days
  • 3.4 Revised cadaster values
 
Miscellaneous
 
  • 4.1 Decision of September 19, 2016, by the Directorate-General for AEAT
  • 4.2 Agreement between the European Union and Andorra on the automatic exchange of information

 

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