Directives of the Annual Tax Control Plan

• New computer tools created ad hoc will reinforce inspections of large assets, facilitating the analysis of aggressive tax planning, the use of intermediary companies, manifestations of purchasing power not in accordance with what was declared and the availability of assets abroad
• The appearances in sectors with a higher risk of VAT fraud will promote the fight against the underground economy, which will be complemented by subsequent monitoring of regularized taxpayers to achieve a permanent expansion of the tax bases over time.
• Special attention will be paid to the control of entities that operate internationally in the field of the digital economy, in relation to the possible existence of actions aimed at excluding Spain from the payment of direct taxes due.

 

January 26, 2017.- The Tax Agency will promote the control of large assets of natural persons using new computer tools created expressly to improve knowledge and selection of risks in relation to those great fortunes. These actions, together with a reinforcement of the fight against the underground economy, especially in the field of VAT, and the regularization of evasive practices in the field of international taxation, will be areas of special relevance for the Tax Agency in its Tax Control Plan 2017, whose general guidelines are published tomorrow in the Official State Gazette.

The control of the assets of natural persons requires the use of sophisticated analysis tools to investigate and understand complex financial and corporate networks. With pre-existing tools, in the last five years, as an example, the Tax Agency has settled tax debt for an amount greater than 400 million euros to individuals with assets of more than 10 million euros.

The Agency now plans to make a qualitative leap in asset control, based on new ad hoc computer tools that facilitate risk analysis and inspections of these large assets, analyzing asset alterations and transfers of income carried out using aggressive control techniques. tax planning, the use of intermediary companies to channel personal remuneration, manifestations of economic capacity inconsistent with the tax bases declared in the Personal Income Tax and the availability of assets abroad.

Furthermore, in 2017 control actions will be carried out based on the information obtained within the framework of the FATCA Agreement on Spanish residents holding accounts in the United States and, at the end of the year, through the CRS model, the account information from from 54 tax jurisdictions, with the same commitment as of 2018 by another 47 jurisdictions.

 

Heritage research supported by 720 and 750

This information will feed the Agency's databases, reinforcing the already notable improvement in the processes of asset analysis, detection of tax risks and expansion of tax bases that the information obtained through the Special Tax Declaration – model 750 – is providing. and the Informative Declaration on assets and rights located abroad – model 720–.

In particular, special attention will be paid to the exploitation of information on transactions with low-tax territories, spontaneous communications from third states, opaque structures with an international component and fictitious locations of tax residences abroad, added to all of this to the asset analysis derived from models 720 and 750, and the rest of the contrast information available related to taxpayers who present signs of concealment.

 

VAT and the fight against the underground economy

At the same time, appearances will be intensified at the headquarters where the economic activity of the taxpayers is carried out, in order to accredit and regularize situations of under-declaration of income.
In particular, in 2017, the Tax Agency will influence actions on sectors in which higher levels of risk of non-compliance with VAT are observed, enhancing the presence of the Tax Administration in relation to activities characterized by sales to the final consumer.

In addition, the extension of actions is planned to all those sectors in which a special perception of high levels of the underground economy is appreciated and tax behavior will be monitored after verifications, in order to achieve a broadening of the tax bases in a manner permanent in time.

On the other hand, the analysis of the real purchasing power of taxpayers will be enhanced, combining the contrast of the declared information on assets and rights with information on current account management and inconsistencies with their formal ownership, beneficiaries of credit cards issued both in Spain and abroad and use of cash, while maintaining actions to verify compliance with the limitation of cash payments.
At the same time, the Agency will reinforce the analysis of commercial software that enables the concealment of sales, within the framework of the strategy it has been maintaining to develop selective actions coordinated at the national level to combat fraud linked to the use of this software.

 

Tax avoidance by multinationals

In the field of international taxation, throughout 2017 the Tax Agency will work on the development of risk analysis models that allow anticipating and optimizing the use of the information that will begin to be received this year on 'tax rulings' and in 2018 on the 'Country by Country' reports, for which the experience accumulated by the National International Taxation Office since its creation in 2013 will be especially relevant. All of this will mean a notable increase in the information available by the AEAT regarding the taxation of multinationals operating in Spanish territory.

During 2017, the Agency will focus its actions on correcting elusive practices of multinationals in accordance with the BEPS (Base Erosion and Profit Shifting) risk areas of the OECD. In particular, aggressive tax planning structures, hybrid structures (with different tax treatment in Spain and in a third country), artificial generation of financial expenses, abusive use of transfer pricing policies (intragroup), attribution of profits will be analyzed. to permanent establishments in Spain of non-resident entities and taxation of operations carried out with residents in tax havens.

Additionally, special attention will be paid to the control of entities that operate internationally in the field of the digital economy, in relation to the possible existence of actions aimed at excluding our jurisdiction from the payment of direct taxes due.

 

Fraud in the digital economy

Together with the actions that are already being carried out to exploit information available on the Internet and control manufacturers and online service providers, collaboration with the tax administrations of other countries will be strengthened to verify the benefits obtained by the economic agents that They use the Internet as a means to advertise goods and services, given that the main advertising affiliates are large transnational companies based outside our borders.

In addition, special attention will be paid to the control of import operations associated with electronic commerce transactions and the analysis of the new means of payment that are being implemented with increasing force – cryptocurrencies, payment mediation platforms, payments from mobile devices, etc. .–, since they can facilitate the opacity of operations.

On the other hand, the Inspection area will carry out immediate actions to verify the information provided by the companies within the framework of the Proposal for the reinforcement of good practices of corporate tax transparency of companies adhering to the Code of Good Tax Practices, agreed in last December. The actions will be especially aimed at guaranteeing that the strategic decisions of multinationals are not contrary to the spirit and purpose of the BEPS project. In this way, the control possibilities are closer in time to the execution of the operations or the presentation of the declaration.

To all of the above, other controls will be added that have traditionally been considered a priority by the AEAT, linked to fiscal risks such as the artificial division of activity and concealment of ownership under corporate figures without real economic activity; the external signs of wealth analyzed through combined actions of the Customs Inspection and Surveillance areas; the use of front men and shell companies, or the control of fraud schemes in VAT, in imports of products from Asia and in the hydrocarbon sector.

In the area of customs control, emphasis will be placed on areas such as the fight against the clandestine manufacture of cigarettes, the illegal diversion of tobacco leaves destined for final consumers and the control of shipments between individuals made by post or through courier companies. . In terms of money laundering, the development of tools that facilitate the investigation of large criminal organizations will be promoted.

 

Control of large debtors

In the Collection Area, and in order to anticipate the reaction to fraud in cases of collection risk, we will insist on carrying out precautionary measures, derivations of responsibility and asset investigations that reveal fictitious insolvencies or conduct tending to evade the payment of debts through the concealment of assets, or that could even constitute possible punishable insolvencies.

Among other measures, the continued monitoring of debtors with high amounts owed will be a priority, through an exhaustive and permanent asset investigation, as well as a systematic control of their outstanding debts in order to be fully available to collect them. Apparent insolvencies will also be monitored, promoting criminal actions that, if applicable, correspond, and the situation of debtors previously declared bankrupt will be reviewed, checking whether their financial situation allows for collection previously frustrated due to insolvency. .

Likewise, control actions in bankruptcy matters will be intensified to prevent fraudulent behavior aimed at evading the payment of tax debts and actions will be reinforced to collect debts linked to crimes against the Public Treasury and smuggling. In the same way, permanent control will be carried out to continue reducing the outstanding debt, particularly the debt in the embargo phase.