## [Tax Newsletter - May 2020](/en_GB/new/tax-newsletter-may-2020)
# Tax Newsletter - May 2020
Spain - 06 / 03 / 2020
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## [**Supreme Court: Use of the principle of dynamic interpretation for tax treaties has limits**](https://www.garrigues.com/en_GB/new/supreme-court-use-principle-dynamic-interpretation-tax-treaties-has-limits)
The Spanish Supreme Court has concluded that tax treaties cannot be interpreted on the basis of later model conventions or of the commentaries on those models.
[**KEEP READING**](https://www.garrigues.com/en_GB/new/supreme-court-use-principle-dynamic-interpretation-tax-treaties-has-limits)
### [**Judgments**](https://www.garrigues.com/en_GB/new/tax-newsletter-may-2020-judgments)
- **Corporate Income Tax.-** EU law precludes a national law that does not allow the compatibility of horizontal and vertical consolidation
- **State aid.-** EU law precludes applying a national limitation period to the recovery of state aid where the expiry of that limitation period is mainly due to delayed enforcement of the recovery obligation
- **Interpretation of EU law.-** A national court does not have to adopt the most favorable interpretation of a provision of national law after that interpretation has been held incompatible with EU law
- **Tax on increase in urban land value.-** Restriction on applying for a refund of final assessments of the tax on increase in urban land value in a proceeding to set aside a decision that is null and void by operation of the law
- **Tax on financial transactions.-** The free movement of capital does not preclude the legislation of a member state which taxes financial transactions involving derivative financial instruments that have as their underlying asset an instrument issued by a company from that state
- **Inheritance and gift tax.-** Personal items cannot include income generating assets, assets used in activities, cash, or marketable securities
- **Form 720.-** Imposing a penalty for every account not reported on Form 720 falls outside the proportionality principle
- **Collection procedure.-** The principles of effectiveness and tax neutrality require the calculation of interest on excess amounts of deductible VAT retained by a state in infringement of EU law to ensure that adequate compensation is received
- **Management procedure.-** VAT recapitulative statements and annual summaries of personal income tax withholdings do not interrupt the statute of limitations for the right to assess
- **Management procedure.-** Rectification of a self-assessment return cannot be refused for procedural reasons only
- **Tax options.-** High courts issue contradictory decisions over whether tax loss carryforwards are a tax option
[**VIEW MORE**](https://www.garrigues.com/en_GB/new/tax-newsletter-may-2020-judgments)
### [**DGT resolutions and TEAC decisions**](https://www.garrigues.com/en_GB/new/tax-newsletter-may-2020-dgt-resolutions-and-teac-decisions)
- **Corporate Income Tax.-** New resolutions on valid economic reasons in restructuring transactions have been published
- **Personal income tax.-** If, after a pay-out of additional paid-in capital generating income from movable capital, income is distributed, the acquisition value will be reduced to the extent of that income
- **VAT - COVID-19.-** Zero rate applies to supplies of medical equipment to all institutions, agencies and entities in the public sector
- **Wealth tax.-** The shares of private equity firms acquired within three years after their registration with the CNMV are not held to comply with statutory or regulatory obligations
- **Collection procedure.-** The persons liable for tax may apply for deferred or split payment of debts in respect of withholdings with shifted liability
[**VIEW MORE**](https://www.garrigues.com/en_GB/new/tax-newsletter-may-2020-dgt-resolutions-and-teac-decisions)
### **Legislation**
- [The voluntary payment period for the 2020 tax on economic activities charges has been determined](https://www.garrigues.com/en_GB/new/voluntary-payment-period-2020-tax-economic-activities-charges-has-been-determined)
[**VIEW MORE**](https://www.garrigues.com/en_GB/new/voluntary-payment-period-2020-tax-economic-activities-charges-has-been-determined)
[Tax](/en_GB/tags/tax), [Spain](/en_GB/tags/spain)
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