2014 Tax Control Plan

• Personnel specialized in computer auditing, coordinated by ONIF, will reinforce in-person actions against the underground economy to detect undeclared activity
• In terms of international taxation, 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 reinforced and the demand for responsibilities in bankruptcy processes will be intensified.

March 31, 2014.- The Tax Agency will begin this year an in-depth investigation of the so-called 'digital economy', an area in which, Taking advantage of the relocation that the network allows, 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 personnel 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 tools of control offered by the anti-fraud law of 2012 (Law 7/2012), will mark the 2014 Tax Control Plan, whose general guidelines are published today by the Official State Gazette.

After a first study, in 2013, of the main business management operations associated with activities carried out exclusively through the network, and at the same time determining tax risk patterns that must be analyzed, the Tax Agency will establish in 2014 a priority attention in two large areas of control in the field of the digital economy: manufacturers or service providers who market their goods or services through the Internet, in order to guarantee the correct taxation in Spain of the income generated in the economic activity, and individuals or entities that own web pages receiving advertising, to ensure the adequate taxation of advertising income 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 in-person actions. The main novelty in this area will be the leading role played by personnel specialized in computer audit techniques, whose control unit is located in the National Fraud Investigation Office, ONIF, with the aim of detecting manipulations of accounting books and of record books, double accounting or partial concealment of the activity.

Also in terms of the underground economy, in-person actions aimed at analyzing 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 related to fund flows, credit card billing or asset situations inconsistent with tax declarations will be intensified, and the exploitation of information from other Public Administrations will be reinforced, especially with regard to the exercise of economic activities.

In 2014, on the other hand, professional activities will continue to be subject to special monitoring, with an increase in the objective of planned actions of 14.7%. In the case of professionals who operate in sectors where cash payments are common, the application of the limitation on cash payments will be examined.

Likewise, actions aimed at detecting the abusive use of corporate forms in business activities in their relationships with partners, workers, administrators or people linked to them will be intensified, aimed at an inappropriate reduction in overall taxation. In this area, 1,919 actions have been planned, 8% more than those planned in 2013.

 

International taxation

In the field of international taxation, in 2014, the start of direct actions by the National Office of International Taxation (ONFI) stands out, which, in addition to the work of planning risk areas and setting criteria for the coordination of actions, will begin to plan the selection of taxpayers susceptible to inspection, as well as to coordinate and support those carried out by the different regional inspection agencies in the most important and complex matters.

The control work in the area of international taxation will pivot, among other areas, on the abusive use of “hybrid” mechanisms that allow an artificial reduction in 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, in 2014 more than 340 actions have been planned aimed at verifying operations carried out with these territories, analyzing their tax implications and proceeding with the corresponding regularizations. These actions will also be coordinated by ONFI.

Furthermore, in 2014 the research project directed by the National Fraud Investigation Office, ONIF, will begin to bear fruit to collect information on holders of cards issued with a charge to accounts abroad, or 'offshore' cards.

 

Anti-fraud law tools

One of the major tasks of information exploitation that will occur this year is that derived from the obligation to report assets and rights abroad, model 720, which incorporated Law 7/2012. These actions will affect both the Inspection area, to determine tax defects in direct taxation and detect possible breaches of the obligation to declare; as well as Management, with a view to the periodic verification of personal income tax; and Collection, for the intensification of seizures of assets and rights abroad.

Likewise, the new cases of exclusion from the objective estimation regime established by Law 7/2012 will lead to a reinforcement of control actions aimed at verifying that the modification of the regime has not led to an intensification of fraud associated with a abusive use of the regime. In particular, cases of artificial division of activity will be analyzed to achieve maintenance in the module regime.

Also in 2014, the Collection area may begin to apply the new assumption of derivation of liability introduced by Law 7/2012, intended to facilitate collection action against the administrators of those companies that, lacking seizable assets but with economic activity regularly, they recurrently submit self-assessments without effective income.

Along with these measures, and the general reinforcement of liability derivations, precautionary measures to ensure the collection of debts and asset investigation actions that allow the detection of possible fictitious insolvencies, agreements prohibiting the disposal of assets will also be strengthened. the real estate of the entities whose shares or participations had been subject to seizure, thus combating fraud derived from the depatrimonialization of companies.

The 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 deposits on account, or of debtors in bankruptcy proceedings, it will be special monitoring of those applications that must be rejected.

The greater emphasis that the Tax Agency will place on guaranteeing the collection of debts will also reach the bankruptcy area, where the corresponding tax liability will be required from bankrupts and bankruptcy administrators who, with 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 caused an increase in tobacco smuggling in general and cigarettes in particular, which has led to a significant detraction of tax revenues. In 2014 controls will be promoted through constant evaluation of the main sectors involved: transportation, retail distribution, travelers, postal shipments, tax warehouses or electronic commerce.

Likewise, the movements of cash by travelers will be subject to control in customs areas and, in coordination with the Inspection area, the import and sale activities of imported products will be analyzed in order to detect undeclared internal transactions, or undervaluation. in the import or in domestic sales subsequent to the import, analyzing the real margins of the activity.