Fourth year of Form 720

• More than 2.6 billion have been declared for the first time this year in accounts, more than 1 billion in real estate and more than 10.1 billion in funds, shares and insurance
• Adding what was declared for the first time in the four years of validity of the '720', more than 24.6 billion euros have been incorporated into accounts, more than 12.1 billion in real estate and more than 104 billion in funds, shares and insurance.
• The total of assets and rights declared, almost 141,000 million, swell the database of the Tax Agency for current and future audits

 

May 25, 2016.- This year, taxpayers have added more than 13.7 billion euros to the total assets declared for the first time in Form 720 for assets and rights abroad. The total, which was incorporated for the first time in 2016, the fourth year in which the informative declaration has been in force, is broken down into more than 2.6 billion declared for bank and credit accounts, more than 1 billion for real estate and more than 10.1 billion for funds (almost 5.1 billion), shares (4.8 billion) and insurance (250 million).

Following the declarations submitted in the first year, taxpayers have been updating their list of assets and rights abroad in the three following years, reflecting, separately, those assets that they claim to declare for the first time in the declarations submitted in 2014, 2015 and 2016; those in which the circumstances exist for re-declaration (increase for each group of assets and rights greater than 20,000 euros) and those that have been extinguished or revoked.

Thus, after the fourth year of filing the '720', taxpayers have reported more than 140.9 billion euros for the first time in the form (91.3 billion in the first year, 20.9 billion in the second, more than 14.9 billion in the third and more than 13.7 billion euros in the fourth year). By type of assets, more than 24.6 billion euros have been declared in accounts, 12.1 billion in real estate and more than 104 billion in funds, insurance and shares.

 

Late presentations

The increased control of assets abroad due to the growing collection of international tax information is inducing more and more taxpayers to comply with their obligation, which is why late tax returns are still being received to avoid penalties arising from non-compliance.

Thus, the amount declared in Form 720 for 2014 (with the usual filing deadline until the end of March 2015) has continued to grow in recent months. The same thing happens with all the models submitted in previous years and, in fact, while within the ordinary submission period of the first year (2013) 131,411 declarations were received, three years later declarations referring to that first '720' are still being received, which now total almost 136,500.

 

The control of wealth abroad

All this information, for the purposes of current and future audits, continues to feed the database of the Tax Agency, which continues with the analysis of the more than 7,000 taxpayers preselected for inspection for not having submitted Form 720 when they should have done so, according to the information available to the Agency, or for having filed the declaration incorrectly.

At the same time, and with the aim of making the most of the available information, also promoting voluntary compliance with tax obligations, the Tax Agency has been launching tens of thousands of warning messages in the last Income Tax campaigns, through the tax data document, to remind taxpayers who had incorporated assets into form 720, that they must declare in their Personal Income Tax the income from said assets.

This extension of the control over assets located abroad allows the tax base to be widened, as the submission of Form 720 encourages the correct payment of Capital Gains and Personal Income Tax.

The PDF includes a table with data relating to model 720 as of April 10.