As in every year, the Spanish Tax Agency has published the guidelines of the Annual Tax and Customs Control Plan for 2020. It contains the main strategic policies that the Tax Agency will follow in the area of assistance, prevention and control of the tax and customs fraud.

Spanish Tax Agency Control Plan

The Spanish Tax Agency promotes a new model of assistance to the taxpayer through electronic means or by facilitating the voluntary accomplishment by putting at the taxpayer’s disposal Corporate income tax data or Aggregated Registry books so as to declare VAT trough Form 303. Besides, it focuses on certain practices followed by taxpayers, in the area of investigation and tax fraud control, of which we highlight the following ones.

✔ In the area of tax audit, the plan aims at:
– Improving the measurement of the impact of tax audit processes, focusing on their effects in the taxpayers’ tax behaviour, including those that have been subject to audit as well as those that have not.
– Fomenting the use of specific plans designed to offer to taxpayers an opportunity to improve their fiscal behaviour without carrying on a tax audit process. It would include the use of individual informative letters, for example, to provide taxpayers with information about their tax situation in relation to their sector environment.

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✔ A special Plan will be launched in order to review the tax losses correctness of taxpayers that repeatedly have included in their tax returns tax losses carried forward as well as pending tax credits.

✔ In the transfer pricing area, special attention will be paid to the compliance of documentation and information requirements, without prejudice of a substantial analysis of the functions, assets and risks valuation contained in such documents. Besides, the following areas will be particularly followed: companies’ restructuring, valuation of intragroup transfers of assets and specially intangibles, the deduction of certain amounts that may significantly reduce the taxable basis, such as royalty payments derived from the grant of intangibles or intragroup services as well as the existence of repeated losses.

✔ As in previous years, the Tax Agency will focus its investigations in the following areas:
– The detection of undeclared permanent establishments given that they produce an immediate reduction of taxable income.
– The correct application of the existing anti – tax haven rules and the use of structures that improperly benefit from the low taxation of these territories.

✔ In the field of Companies’ tax consolidation schemes, the Tax Agency will develop the traditional control with respect to groups with a greater dimension as well as to groups with a reduced consolidated turnover. It will focus on those with a limited number of companies integrating them and in which, in general, there are no internal transactions that would be ordinarily eliminated in a tax consolidation scheme.

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In summary, the Plan identifies risk profiles that will be subject to tax audit on a priority basis and that are worth knowing beforehand.

Publicado el 02-2020 por PBS