## [Tax Newsletter - May 2017](/en_GB/new/tax-newsletter-may-2017) # Tax Newsletter - May 2017 05 / 30 / 2017 - - [](https://www.linkedin.com/sharing/share-offsite/?url=https://www.garrigues.com/en_GB/new/tax-newsletter-may-2017) - []() - []() Previous Next ![](/sites/default/files/noticias/img/cabecera_tributario_1.jpg) May newsletter prepared by professionals from the Tax Department. **1. Judgments** - 1 Corporate income tax – The tax credit for reinvestment is not claimable for indemnification related to early termination of a lease agreement (Madrid High Court. Judgment of January 25, 2017) - 2 Personal income tax.- The payment to a director in respect of terminating his services at the company is not multi-year income (National Appellate Court. Judgment of March 15, 2017) - 3 Personal income tax.- Minimum amount of severance payable to senior manager in unilateral withdrawal by the employer is exempt (National Appellate Court. Judgment of March 8, 2017) - 4 VAT.- The supply of restaurant and entertainment services by an educational establishment as part of the students’ education is exempt (Court of Justice of the European Union. Judgment of May 4 2017 in Brockenhurst College Case C-699/15) - 5 VAT.- The principle of proportionality must be observed in penalty proceedings (Court of Justice of the European Union. Judgment of 26 April 2017 in Farkas Case C-564/15) - 6 Inheritance and gift tax –Value of property determined on due date not assessment date of the tax (National Appellate Court. Judgment of March 13, 2017) - 7 Tax on increase in urban land value.- The tax under the law generally applicable in Spain is unconstitutional if there has been no increase in value (Constitutional Court. Judgment of May 11, 2017) - 8 Audit procedure.- In reassessments of withholding obligations the tax authorities must reassess principal obligation (Supreme Court. Judgment of April 17, 2017) - 9 Review procedure.- The taxpayer may produce documents in the review jurisdiction (Supreme Court. Judgment of April 20, 2017) **2. Administrative doctrine** - 1 Corporate income tax.- The effects of satisfaction of a resolutory condition in a sale agreement do not have to be valid from when the condition was covenanted (Central Economic-Administrative Tribunal. Decision of May 6, 2016) - 2 Corporate income tax.- Promotional expenses do not fall within the limit on client entertainment expenses (Directorate-General for Taxes. Ruling V0242-17, of January 31, 2017) - 3 Personal income tax.- Deduction of expenses on lease of a building in grace period (Directorate-General for Taxes. Ruling V0714-17, of March 17, 2017) - 4 Collection procedure.- If split payment is granted and payment of an instalment is delayed, all outstanding instalments will fall due (Central Economic-Administrative Tribunal. Decision of April 28, 2017) - 5 Penalty procedure.- The 25% reduction applies if penalty is paid (i) through offset or (ii) in payment period commenced with notification of decision denying application for offset or for deferred or split payment (Central Economic-Administrative Tribunal. Decision of April 28, 2017) **3. Legislation** - 1 IIS Order approved - 2 Corporate income tax and nonresident income tax returns for 2016 approved - 3 Reduction for 2016 of given indexes for the objective assessment method for personal income tax **4. Miscellaneous** - 1 Draft Order approving form 232 (information return for controlled transactions and for transactions and positions related to countries or territories deemed to be tax havens) [![](/sites/default/files/tax-newsletter-may-2017.jpg)](http://www.garrigues.com/doc/emags/Tax-Newsletter-May-2017/#/1/) ### Contact ![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) [Find more professionals](../team) ### Related services - [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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