Evolution of assets on the basis of form 720

• In 2015, the '720' declarants already represent 31% of the taxable base of the Estate, compared to 12% before the process of asset disclosure and income regularization began.
• This evolution reflects that the emergence of hidden assets abroad has generated a strong increase in bases and declarants in the highest brackets of the Wealth Tax.

 

September 20, 2016.- Taxpayers who revealed hidden assets abroad in the framework of the process opened with the launch of form '720' for declaring assets and rights abroad and the filing of the Special Tax Declaration (form '750') have significantly increased their taxable bases declared in the Wealth Tax as a result of this process of asset disclosure.

According to the results of an analysis carried out by the Tax Agency on the behaviour of taxpayers of the Wealth Tax, the group of taxpayers of this tax who are also taxpayers of the '720' have increased their declared taxable base in Wealth by 78% between 2007 and 2015 (understood as accrual years; no presentation). In the same period, the base declared by all taxpayers who filed assets fell by almost 32%.

The reason for considering 2007 as the reference year for the analysis is that it was the last year in which the tax was accrued before the asset disclosure and income regularisation process that began in 2012 began. In this regard, after the elimination of the tax during the period 2008-2010, the next declaration of assets, referring to 2011, was presented in 2012, when the intention to implement a new anti-fraud law that would include the obligation to declare assets and rights abroad was already public, and also when the first income regularizations associated with the presentation of the Special Tax Declaration were carried out.

In fact, a very important part of this increase in taxable bases declared in the Assets by taxpayers of the '720' is already occurring in relation to Assets 2011, of more than 29% in relation to the bases that these taxpayers declared in the tax in 2007. The remainder, to complete this global increase in bases declared in the period 2007-2015, occurs in relation to Assets 2012; That is, precisely within the framework of the process of surfacing assets abroad and regularizing income.

The same behaviour, even more pronounced, can be seen in the case of the group of DTE presenters. In this case, in the period 2007-2011, the taxable bases declared in the Assets section grew by more than 40%, and in the period 2007-2015 they increased by more than 82%. All this despite the fact that the bases for the group of tax declarants fell noticeably, partly as a consequence of the legal modifications introduced by the different autonomous communities in the exercise of their regulatory capacity.

 

The weight of the '720' declarants in Patrimony grows

In the case of filers of the '720' form, this sharp increase in their declared base in Assets has caused a significant increase in their relevance in relation to the group of filers of the tax.

Thus, while in the 2007 Asset Tax return, taxpayers who subsequently turned out to be filers of the '720' declared 12% of the taxable base of all Asset Tax payers, in 2015 the proportion has become 31% of the overall taxable base of the tax.

The evolution of the taxable bases for wealth thus shows the effect of the process of declaring assets hidden abroad, especially in the highest tax brackets, where, rather than an increase in assets, what has occurred is an emergence of assets that were hidden abroad, and which have been declared since 2012.

This improvement in voluntary compliance runs parallel to the strengthening of asset control that the Tax Agency has been carrying out, both through an analysis of the information obtained on assets abroad from the '720', determining asset variations and taxable events to be regularized, as well as the regularizations already carried out and those that are in progress.