On January 22nd 2008 the General Directorate of the Spanish Tax Office (Direccion General de la AEAT) published a Resolution with the areas of focus for the tax inspectors in 2008.
The Tax Office publishes every year this Resolution, stating the areas of tax investigation focus for the tax year. This is a statutory obligation of the Tax Office according to Spanish Tax Law (Ley General Tributaria 58/2003, section 116).
During the last years we have seen an increased focus on non resident individuals with properties and operations in Spain.
The main areas of focus we have identified in this document are:
- Non Resident Tax due by non resident individuals owning property in Spain and not submitting the annual returns.
- Acquisitions, holding and sales of real estate property by non resident and applicable taxes to all those operations
- Related parties transactions with international companies and with Tax havens
- Real Estate activities with very low profitability over the years and assessment to ensure market prices are been reported in the returns
- Revision of Companies that have declared transactions in previous years according to the former property holding regime (Sociedades Patrimoniales) without meeting the requirements