3.1.2. Extensive control

The extensive control has the purpose of detecting and amending errors and more simple tax defaults. It is directed to generally verify all the tax debts individually considered, starting with the information that the Tax Agency has. It is fundamentally based on computer processes and documentary controls, without revising the taxpayer's accounting, usually carried out in the offices.

Extensive control is carried out by the Tax Management bodies and the Large Company Management Units, dependent on the Financial and Tax Inspection area, with respect to taxpayers whose volume of operations exceeds the figure of 6.01 million euros during the year. immediately preceding calendar year, as well as by the Customs and Special Taxes bodies in relation to foreign trade taxes and Special Taxes

Personal Income Tax

In 2012, the actuations of extensive control on this tax have been fundamentally focused in the 2010 financial year. The results obtained are shown in the following table:

* Amount in millions of euros.

The campaign of control of the Personal Income Tax return 2011 has also begun. It will last throughout 2013 and its data will be shown in the Tax Agency's 2013 Annual Report.

Corporation Tax and Value Added Tax

In 2012, the actuations of extensive control carried out in relation to the Corporation Tax and the Value Added Tax, referred both to large companies and the rest of obliged taxpayers, haver respectively reached settlements of 581.99 and 1,762.25 million euros. The number of settlements has risen to 46,224 in the Corporation Tax and 127,660 in the Value Added Tax.

This amount includes the effect of the control activities and has produced a reduction in refunds and compensations and negative taxable income.

Actions on taxpayers in Modules

In the case of taxpayers subdued to the objective evaluation system, the results of the control actuations mean the issue of audit reports and the broadcast of provisional settlements.

* Amount in millions of euros.

Verification of periodic tax returns.

Automated checks are performed on compliance with tax liabilities for the registered business persons, professionals and withholders; whenever any failure to comply with obligations is detected, a notice letter or requirement to make payment is sent to the taxpayer. These controls are fundamentally addressed to the filing of the periodic self-assessments (Value Added Tax, withholdings and staged payments).

In 2012, there has been 178,738 actuations directed to induce to the fulfilment of the obligation of filing returns, compared to the 177,044 actuations carried out during 2011.

Control in Customs

After the approval of the Regulations (EC) 648/2005 and 1875/2006 onthe modification of the Community Customs Code and its application arrangements, the main purpose of the customs control in these moments, along with the correct clearance of the customs obligations and other foreign trade taxes, is to guarantee the protection of consumers and the safety of frontiers by preventing the entry of goods that are illegal or potentially dangerous for the health and integrity of citizens or the environment.

For that purpose the logistics chains are being promoted, this is, the circulation of goods through safe channels, with the participation of Authorised Economic Operators.

Spain has 493 of these Operators, having granted this condition to 138 new operators in 2012.

Specifically, in 2012 the following documentary controls and physical checks of goods have been carried out in Customs:

As a result of these controls, there has been 5,007 seizures of merchandise due to alleged breaches of intellectual property right. From which have derived 2,137 trademark withholding reports, and 850 live animals belonging to endangered species have been controlled, especially reptiles and birds.

Special Taxes intervention and management

The control of the settlement of the Special Manufacturing Taxes is carried out firstly by carrying out Excise intervention actuations consistent in the control of manufacturing, transformation, manipulation, storage or sale activities of products subject to the Special Manufacturing Taxes, as well as of the establishments where these are carried out.

Preventing fraud in economic activities subject to the Special Manufacturing Taxes requires carrying out actuations of permanent Intervention, both previous and simultaneous, in controls from the moment the taxable event takes place. The singularity of these tax figures with characteristics such as non-monetary taxable incomes, high tax rates, exemptions, exceptions and tax refunds, depending on the destination, with non-monetary taxable bases, make it necessary to perform preventive controls.

Audit activity in 2010 and 2011 is shown in the following table.