EU Takes Action Against Spain Over Rules On Reporting Overseas Assets (The famous modelo 720)
by Ulrika Lomas, Tax-News.com, Brussels13 June 2019
The European Commission is demanding Spain to the Court of Justice, because of the imposition of "disproportionate" sanctions for failure to report overseas assets.
The famous "modelo 720" requires resident taxpayers to declare assets they hold abroad. Failure to declare in time or committing an error in the declaration are subject to elevated sanctions, that are higher than those for similar infringements. Due to EU principles, model 720 is accused to be discriminatory and unreasonable. It is said that it does frame businesses and private persons from investing or moving across the borders in the EU single market.
Earlier the Commission has started proceedings in this same against Spain in 2015 and 2017.
Leave a Reply.
International Tax & Law