Rectification of model 720 without paying the fine of 150% of the unpaid tax (copy)

Regularization of model 720 without paying the fine of 150% of the unpaid tax 

Since 2012, taxpayers in Spain have been obliged to submit the 720 model. It is a purely informative declaration of their rights and assets abroad. For further information on the 720 model, please visit our Landingpage

The penalties for late submission of the Model 720 have been criticized since their introduction, because they are disproportionately high. They included both the sanction for Model 720 and the improperly not declared increment value tax, which could amount to up to 150% of the tax not paid. 

So far there has been no official statement from the tax administration on the practice of imposing such fines. Lastly, and at the same time as the EU Commission's decision to bring Spain to the European Court of Justice (since Spain has declared that it is not willing to change its practice), the Central Tax Administration (DGT) has published the following request: V1434-17 (from the 5th of June 2017) published. 

In the request, the DGT concludes that the fine of 150% of the actual tax liability is not applied if the taxpayer voluntarily regulates the non-duly declared increment value tax (plus the omission charges for the late levy pursuant to Article 27 LGT). Therefore it is only the fine for the delayed delivery of the model 720 that has to be paid.

Even if the binding information provided is a great advance, the fines for the late submission of the 720 model are still disproportionately high, we hope that the European Court of Justice will condemn Spain to lower them.