Non-application of the special system

Regulation: Article 89.2 LIS

The tax neutrality regime will not apply when the operation carried out has as its main objective tax fraud or evasion.

The tax administration may presume that the operation carried out has as its main objective tax fraud or evasion when it is not carried out for valid economic reasons, such as the restructuring or rationalization of the activities of the entities that participate in the operation.

In the event that the verification actions of the Tax Administration determine the total or partial non-application of the special tax regime by application of the provisions of the preceding paragraphs, they will eliminate exclusively the effects of the tax advantage.

(See, among others, Supreme Court Judgment 2508/2016, of November 23, 2016; ROJ STS 5177/2016).