Thursday, March 28

This is how the 720 model declared illegal by European justice works


The informative declaration of goods and rights located abroad or form 720 of the Tax Agency, declared illegal this Thursday by the Court of Justice of the European Union, was launched when Cristóbal Montoro was minister in the economic crisis to combat tax fraud. What does it consist of?

The obligation to present a declaration on assets abroad was included in the 2012 law to combat tax fraud with the aim of revealing hidden assets after the tax amnesty, although the first deadline to present the so-called model 720 was located in 2013.

This regulation obliges holders of accounts in financial institutions, titles, assets, securities, real estate, virtual currencies or life insurance valued at more than 50,000 euros and residing in Spain to inform to the Tax Agency.

They also have to report in successive years if the declared assets increase by more than 20,000 euros.Failure to comply with this obligation is subject to a fine of 5,000 euros for each data or set of data not communicated or erroneous., with a minimum of 10,000 euros, or, in the event that the declaration is submitted after the deadline, 100 euros for each data or set of data with a minimum of 1,500 euros.

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In addition, the defaulter is subject to heavy penalties (with fines of up to 150% of the liquidation fee) while the uncovered income will be considered as an unjustified capital gain, with which it will be recorded in the last non-prescribed fiscal year.

The implementation of this informative statement emerged more than 88,000 million euros in goods abroad in the first year, which were integrated into the Tax Agency database for future checks.



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