The Tax Agency begins exhaustive control over the digital economy and will promote early detection of hidden activities
2014 Tax Control Plan
- Specialized personnel in computer auditing, coordinated by the ONIF, will reinforce face-to-face actions against the underground economy to detect undeclared activity
- In terms of international taxation, the ONFI will plan the selection of taxpayers for inspection, information on assets abroad will be exploited and 340 actions will be carried out on operations with tax havens.
- The use of debt collection tools offered by the anti-fraud law will be strengthened and the demand for responsibilities in bankruptcy proceedings will be intensified.
March 31, 2014.- This year, the Tax Agency will begin an in-depth investigation into the so-called 'digital economy', an area in which, taking advantage of the delocalization allowed by the Internet, various forms of fraud can be hidden, including both completely underground activities and others that disguise their operations under a foreign appearance to avoid tax obligations in Spain.
These actions, together with the leading role that the staff dedicated to computer auditing will play in investigations into the underground economy, the direct actions that the National Office of International Taxation (ONFI) will begin to carry out and the exploitation of the new information and control tools offered by the anti-fraud law of 2012 (Law 7/2012), will mark the 2014 Tax Control Plan, whose general guidelines are published today in the Official State Gazette.
Following an initial study in 2013 of the main business management operations associated with activities carried out exclusively online, and at the same time determining tax risk patterns that should be analysed, the Tax Agency will focus its attention in 2014 on two major areas of control in the field of the digital economy: manufacturers or service providers who market their goods or services over the Internet, in order to ensure the correct taxation in Spain of the income generated by economic activity, and individuals or entities that own websites that receive advertising, to ensure the proper taxation of advertising revenue in our country.
Combating the underground economy
At the same time, in 2014 the Tax Agency will maintain as one of the main focuses of its activity the execution of a coordinated strategy to combat the underground economy, seeking the early detection of hidden activities and promoting face-to-face actions. The main novelty in this area will be the leading role played by personnel specialised in computer auditing techniques, whose control unit is based in the National Fraud Investigation Office, ONIF, with the aim of detecting manipulations of accounting books and registration books, double accounting or partial concealment of activity.
Also in the area of the underground economy, face-to-face actions aimed at analysing billing and payment methods will be a priority to verify compliance with the limitation on cash payments established in Law 7/2012. Likewise, the exchange of information regarding cash flows, credit card billing or financial situations inconsistent with tax returns will be intensified, and the use of information from other Public Administrations will be reinforced, especially in relation to the exercise of economic activities.
In 2014, professional activities will continue to be the subject of special monitoring, with an increase in the target of planned actions of 14.7%. In the case of professionals operating in sectors where cash payments are common, the application of the limitation on cash payments will be examined.
Likewise, actions will be intensified to detect the abusive use of corporate forms in business activities in their relations with partners, employees, directors or persons linked to them, aimed at an improper reduction of overall taxation. In this area, 1,919 actions have been planned, 8% more than those planned in 2013.
International taxation
In the area of international taxation, the National Office of International Taxation (ONFI) began direct actions in 2014. In addition to planning risk areas and establishing criteria for coordinating actions, it will begin to plan the selection of taxpayers subject to inspection, as well as to coordinate and support those carried out by the various regional inspection departments in the most important and complex matters.
The control work in the area of international taxation will focus, among other areas, on the abusive use of "hybrid" mechanisms that allow an artificial reduction of taxation by making use of agreements to avoid double taxation, operations with tax havens, false residents in third countries, and non-resident professionals who carry out economic activity in Spain.
In the case of tax havens, more than 340 actions have been planned in 2014 aimed at verifying operations carried out with these territories, analysing their tax implications and proceeding with the corresponding regularisations. These actions will also be coordinated by the ONFI.
In addition, in 2014, the research project led by the National Fraud Investigation Office, ONIF, to collect information on holders of cards issued to accounts abroad, or 'offshore' cards, will begin to bear fruit.
Anti-fraud law tools
One of the major information exploitation tasks that will take place this year is the one derived from the obligation to report assets and rights abroad, form 720, which was incorporated by Law 7/2012. These actions will affect both the Inspection area, to determine tax defects in direct taxation and detect possible non-compliance with the obligation to declare; as well as Management, with a view to the periodic verification of the IRPF; and Collection, for the intensification of seizures of assets and rights abroad.
Similarly, the new cases of exclusion from the objective assessment regime established by Law 7/2012 will lead to a reinforcement of the control actions aimed at verifying that the modification of the regime has not given rise to an intensification of the fraud associated with an abusive use of the regime. In particular, assumptions of artificial division of activity will be analysed in order to achieve maintenance in the modular system.
Also in 2014, the Collection area will be able to begin to apply the new assumption of liability derivation introduced by Law 7/2012, intended to facilitate the collection action against the directors of those companies that, lacking seizable assets but with regular economic activity, repeatedly submit self-assessments without effective income.
In addition to these measures, and the general strengthening of liability transfers, precautionary measures to secure debt collection and asset investigation actions to detect possible fictitious insolvencies, agreements prohibiting the disposal of real estate assets of entities whose shares or interests have been seized will also be strengthened, thus combating fraud resulting from the disassetization of companies.
The tax collection work of the Tax Agency will be reinforced by the control of systematic requests for deferrals aimed at the unjustified delay in the payment of tax debts and, in the case of withholdings and payments on account, or debtors in bankruptcy proceedings, special monitoring will be carried out of those requests that should be subject to inadmissibility.
The greater emphasis that the Tax Agency will place on ensuring the collection of debts will also extend to the bankruptcy sphere, where the corresponding tax liability will be demanded from bankrupts and bankruptcy administrators who, through their action or inaction, harm the Public Treasury.
Tobacco smuggling
In terms of Customs and Excise control, special attention will be paid to tobacco smuggling. The combination of certain factors in the economic and social context has led to an increase in tobacco smuggling in general and cigarettes in particular, which has resulted in a significant loss of tax revenue. In 2014, controls will be promoted through constant evaluation of the main sectors involved: transport, retail distribution, travellers, postal deliveries, tax warehouses or electronic commerce.
Likewise, cash movements by travellers will be subject to control in customs premises and, in coordination with the Inspection area, import activities and the sale of imported products will be analysed in order to detect undeclared internal transactions, or undervaluation in imports or in internal sales subsequent to imports, analysing the real margins of the activity.