## [Tax Newsletter - March 2017](/en_GB/new/tax-newsletter-march-2017) # Tax Newsletter - March 2017 03 / 27 / 2017 - - [](https://www.linkedin.com/sharing/share-offsite/?url=https://www.garrigues.com/en_GB/new/tax-newsletter-march-2017) - []() - []() Previous Next ![](/sites/default/files/noticias/img/cabecera_tax.jpg) March newsletter prepared by professionals from the Tax Department. **1. Judgment** - 1 Personal income tax.- Not permitting residents to deduct negative income is inconsistent with the freedom of establishment (Court of Justice of the European Union. Judgment of February 9, 2017, case C-283/15) - 2 Personal income tax- The costs associated with shared custody arrangements may benefit from the treatment for child support (Madrid High Court. Judgment of January 30, 2017) - 3 Tax on increase in urban land value.- New judgment holding the tax unconstitutional if there is no increase in value (Constitutional Court. Judgment of March 1, 2017) - 4 Management procedure.- The authorities’ prior appraisal of real estate cannot be changed in a later audit (Madrid High Court. Judgment of November 24, 2016) - 5 Collection procedure.- The stay of an administrative decision will not be maintained when an appeal for protection of constitutional rights is lodged (Supreme Court. Judgment of February 27, 2017) - 6 Tax procedure.- Consequence of excessive inactivity in the criminal jurisdiction on tax proceedings (Supreme Court. Judgment of February 28, 2017) - 7 Penalty procedure.- Neither cooperation in the audit proceeding nor the fact of errors having been made may prevent fault (Supreme Court. Judgments of February 17 and February 23 2017) - 8 Criminal procedure.- The “Falciani list” is valid as clear and convincing evidence of the tax offense (Supreme Court. Judgment of February 23, 2017) **2. Decisions and rulings** - 1 Corporate income tax.– The one million euro limit for the deduction of severance does not apply to any other incentives that may be paid in connection with the dismissal (Directorate-General for Taxes. Ruling V0117-17, of January 23, 2017) - 2 Corporate income tax.– The special valuation rule for capital payments to convert debt into equity applies even if the conversion is made successively (Directorate-General for Taxes. Ruling V0046-17, of January 13, 2017) - 3 Corporate income tax.- Capitalizations of reserves are not actual shareholder contributions for the purposes of limiting the transfer of net operating losses (NOLs) in a merger (Directorate-General for Taxes. Ruling V0014-17, of January 03, 2017) - 4 Personal income tax.- Social security maternity benefits are not exempt from personal income tax (Central Economic- Administrative Tribunal. Decision of March 2, 2017) - 5 VAT/administrative procedure.- Excess input VAT not deducted in an earlier statute-barred year may be offset in a non-statute barred year (Central Economic-Administrative Tribunal. Decision of February 15, 2017) - 6 Tax on economic activities.- Form 840, return for the tax on economic activities, may be filed on paper or remotely at the taxpayer’s choice (Central Economic-Administrative Tribunal. Two decisions, on January 26, 2017) - 7 Real estate tax.- In the appraisal of overbuilt properties the area of the structure actually built has to be taken into account not the permitted area (Central Economic-Administrative Tribunal. Decision of January 19, 2017) - 8 Excise and other special taxes.- Failure to enter electricity generation plants on the territorial register for excise and other special taxes has not been subject to a fine since January 1, 2015 (Central Economic-Administrative Tribunal. Decision of January 26, 2017) - 9 Management procedure.- On taxable persons wishing to correct their self-assessments for output tax (Central Economic-Administrative Tribunal. Decision of February 15, 2017) - 10 Audit procedure.- The auditors cannot commence a second audit with the same subject-matter and scope as a previous audit (Central Economic-Administrative Tribunal. Decision of January 26, 2017) - 11 Review procedure.- The decision on an appeal for consideration against a penalty decision is a document with essential value for a special judicial review application (Central Economic Administrative Tribunal. Decision of February 15, 2017) - 12 Enforcement procedure.- When a court confirms a decision rendered by an economic-administrative tribunal, the jurisdiction to decide on the ancillary enforcement proceeding lies with that tribunal (Central Economic Administrative Tribunal. Decision of February 2, 2017) **3. Legislation** - 1 Approval of the 2016 personal income tax and wealth tax return forms - 2 Corporate income tax prepayments: forms - 3 Average trading value for the fourth quarter of 2016 for securities traded on organized markets for wealth tax purposes - 4 Program for preparation of Spanish athletes for the Tokyo 2020 Games: tax incentives **4. Miscellaneous** - 1 Spanish Accounting and Audit Institute (ICAC) ruling on the accounting impact of the new rules on incorporating impairment losses approved by Royal Decree-Law 3/2016 [![](/sites/default/files/tax-newsletter-march-2017.jpg)](http://www.garrigues.com/doc/emags/Tax-Newsletter-March-2017/#/1/) ### Contacts ![Eduardo Abad Valdenebro - Garrigues](/sites/default/files/styles/medium/public/team/photo/Eduardo_Abad_Valdenebro_en_20260611.jpg?itok=XJmuqiG8) [Eduardo Abad](/en_GB/team/eduardo-abad-valdenebro) ![](/themes/custom/garriguestheme/img/iconos/email-contacto.svg)[Contact]() - +34 91 514 52 00 [Madrid](https://www.garrigues.com/en_GB/office/madrid) ![Foto del socio](/sites/default/files/styles/medium/public/team/photo/abigail_blanco_vazquez_en_20230601.jpg?itok=CLrUmt_-) [Abigail Blanco](/en_GB/team/abigail-blanco-vazquez) ![](/themes/custom/garriguestheme/img/iconos/email-contacto.svg)[Contact]() - +34 91 514 52 00 [Madrid](https://www.garrigues.com/en_GB/office/madrid) [Find more professionals](../team) ### Related services - [Criminal Law and Internal Investigations ](/en_GB/services/criminal-law-and-internal-investigations) - [Tax ](/en_GB/services/tax) ### Related offices - - [A Coruña](/en_GB/office/acoruna) - [Alicante](/en_GB/office/alicante) - [Barcelona](/en_GB/office/barcelona) - [Bilbao](/en_GB/office/bilbao) - [Las Palmas de Gran Canaria](/en_GB/office/palmas-gran-canaria) - [Madrid](/en_GB/office/madrid) - [Malaga](/en_GB/office/malaga) - [Murcia](/en_GB/office/murcia) - [Oviedo](/en_GB/office/oviedo) - [Palma de Mallorca](/en_GB/office/palma-mallorca) - [Pamplona](/en_GB/office/pamplona) - [San Sebastian](/en_GB/office/san-sebastian) - [Seville](/en_GB/office/seville) - [Sta. 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