The Inland Revenue is besieging tax dodgers and the black economy

An amnesty for tax evasion has recently been approved, by which tax dodgers may regularize their situation through paying a 10% tax rate.

Tax payers can benefit from this law until 30th November 2012, basically income tax, non-resident tax and companies house payers, with assets or rents not declared so far.

Likewise, and by another law, residents of Spain are to declare their assets abroad, if not the minimum fine will be 10.000 euros and an additional 5000 euros per datum omitted. The gains of these assets not declared will never be extinguished by prescription. Even more important, also to be declared those potential rents or gains from “opaque” assets such as “trusts”.

The assets (rents and gains included) to be declared are:
1. Real Estates
2. Assets and rights affected by businesses.
3. Bank deposits.
4. Shares.
5. Cash.
6. Rest of assets and rights not included above (i.e. trusts).

Assets and/or rights declared must have been acquired before 31st December 2010.

Even more recently is the ban on cash payments over 2500 euros, when sole traders or businessmen in general are involved. This limit does not affect transactions between individuals or individuals and banks. This limit is increased up to 15.000 euros when non-residents payers, in order to encourage tourism. The fine will be up to 25% of the amounts not justified.

Therefore, may I recommend that every case is studied individually, in order to consider the specific situation of every payer.

Additional information