Tax Newsletter - September 2019
España -
In this new issue of our newsletter we report on a recent TEAC decision that puts the magnifying glass on tax exemptions for severance. The decision allows tax auditors to review the legal characterization of the dismissal along with whether there has actually been a unilateral termination by the employer or whether, by contrast, there was an agreement between the parties. We also round up all the main judgments, decisions, resolution requests and legislation in the field of tax law.
Exemption for severance requires proof that dismissal was real
Recent decision by the Central Economic-Administrative Tribunal (TEAC) accepts that tax auditors can examine the real legal nature of a dismissal.
Judgments
- Corporate income tax.- Before the current Corporate Income Tax Law, the regime for companies of a reduced size only required fulfillment of the net sales/revenues limit
- Tax on increase in urban land value.- Supreme Court submits new request for a ruling on unconstitutionality concerning the legislation on the tax on increase in urban land value
- Management procedure/requests for information.- The information obtained through requests for information to third parties must be checked if the taxpayer denies the truth of its content
- Management procedure.- Incorrect payments arising from a tax assessment can also be recovered within the statute of limitations period
- Tax audits.- An order to complete the audit file does not give rise to a justified stay of the penalty proceeding
- Collection procedure.- Supreme Court clarifies how to calculate late-payment interest in the event of a partially upheld claim against enforcement of a judgment
- Review procedure.- The taxpayer is allowed to introduce new arguments and produce new evidence in the economic-administrative jurisdiction
Decisions
- Corporate income tax.- Double taxation credit cannot be claimed for income received in respect of shareholder status
- Inheritance tax.- If a lawsuit on the nullity of a will is initiated after the filing period for the return, the tax authorities must require assessment of the tax or order suspension
- VAT.- Payments for plane tickets by travelers that do not ultimately fly cannot be treated as compensation
- Economic-administrative procedure.- Claims raising the same issue that is to be decided in a preliminary ruling do not have to be stayed
- Enforcement procedure.- The authorities only have six months to levy a penalty where the previous penalty is invalid because of a partly void assessment
- Enforcement procedure.- The stipulated time periods for enforcement of decisions upheld for procedural reasons also apply for substantive grounds
Resolution requests
- Corporate income tax.- Reduction of the administrative burden associated with capital requirements for insurance companies can be a valid economic reason
- Corporate income tax.- If a total spin-off is followed by a gift of the received shares, the proportionality requirement may be affected
- Personal income tax.- Reduction for multi-year income can be claimed for income from early settlement of stock options plan
- Personal income tax.- Salary income obtained from court-approved settlement agreements may qualify for the 30% reduction
- Personal income tax.- Goodwill included in a business acquired by gift is not amortized
- Inheritance and gift tax.- Days spent abroad do not count for determining the autonomous community of residence
Legislation of interest
- Various tax benefits approved for people affected by storms and other catastrophic events
- New instructions approved for the single administrative document (SAD)
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