2022 Balance of Tax Control Results

• More than 3.4 billion in regularized tax bases after 117 inspections on the international taxation of large multinationals

• Debt amounting to 546 million euros has been settled in 1,130 audits carried out on large estates

• Total outstanding debt falls by 3.8% and is at its lowest level in 13 years

• In 2022, 16,675 million euros were obtained as a result of the control work – 15,362 million in homogeneous terms, 2.7% more –, of which 10,536 million correspond to direct income, 16.6% more

• The Agency has reduced negative bases, deductions pending application and quotas to be offset for an amount of 3.86 billion, 50% of which correspond to actions of the Central Delegation of Large Taxpayers

August 1, 2023 .- In 2022, the Tax Agency carried out a total of 39,366 nominal control actions related to large companies, personal assets, corporate abuses and the fight against the underground economy, 7.6% more than the previous year. Specifically, and within these actions that consume a large amount of resources, also characterized by their high qualification, 29,394 actions were carried out on large companies, multinationals and corporate groups, 8.9% more; 2,971 for asset and corporate analysis (+2.5%); and 5,594 in relation to the concealment of activity and the abuse of corporate forms (+5.2%). The figure of 39,366 checks is completed by 1,407 actions that have allowed hidden sales to be revealed within the framework of the control of economic activities (the rest of the actions to discover sales are already included in the two previous sections).

These results are part of all the control activity carried out by the Tax Agency in 2022, which concluded with 1,889,000 internal tax control actions, 5.2% more than the previous year and 16.1% more than in 2020, also exceeding pre-pandemic levels in practically all major types of actions.

Fundraising results

In terms of overall revenue collection, and as a result of its work in preventing and combating fraud, in 2022 the Agency obtained homogeneous results of 15,362 million euros (16,675 million in total), 2.7% more than the previous year. These homogeneous results do not include the reduction of split payments (1,313 million euros in 2022 and 1,940 million in 2021), which will be difficult to repeat in the future and, therefore, prevent a homogeneous comparison of the series.

Among these overall figures, the direct revenues achieved by the Tax Agency in its control activities stand out, which have increased by 16.6% to reach 10,536 million euros. In turn, induced revenues (late filings without prior request) have grown by 7.8% to 813 million euros.

The reduction in refunds without the extraordinary payments of instalments fell to 4,013 million euros (-22.3%), given that last year the results of a series of files from the Customs and IIEE Area were significantly reduced (which went from 3,255 to 1,641 million euros), which are also difficult to repeat over time. Without the effect of both types of proceedings (partial payments and Customs), the ordinary result of refund reductions would grow by 24.2% to reach 2,372 million euros.

The Tax Agency also made reductions in negative tax bases, deductions in fees pending application and fees to be offset, amounting to 3.86 billion euros, of which 50% corresponds to actions by the Central Delegation of Large Taxpayers. These are very significant actions (8.8 billion in the last two years) that, although they do not count in the control results, as they do not involve income or a reduction in refunds, are of great importance in broadening future tax bases and increasing revenue.

International taxation

In the area of international taxation of large multinational companies, the Tax Agency last year regularised tax bases amounting to 3.409 billion euros in a total of 117 inspections carried out by the Central Delegation of Large Taxpayers and the other delegations of the Agency with the support of the National Office of International Taxation (ONFI). The amount of these regularised tax bases is in line with the average of the previous three years.

In turn, in 2022, the ONFI participated in the management of 28 Advance Valuation Agreements (APA) with an estimated result – the same figure as the previous year –, which means guaranteeing future tax bases for an amount of more than 2.7 billion euros.

High net worth individuals and false non-residents

In parallel, last year the Agency carried out a total of 1,130 control actions from its different branches on large assets of individuals, in line with the previous year, actions that led to the liquidation of debt for an amount of 546 million. Since 2018 – the year in which the Central Unit for the Coordination of Control of Relevant Assets was created – until 2022, more than 2.4 billion euros have been settled in this area in more than 4,400 audit files.

In addition to supporting the liquidations of large fortunes carried out in each territorial area of the Agency, the Unit has been promoting various projects to continue strengthening and updating the control systems in this area. One of them is the tool to facilitate the detection of false non-residents with significant assets. In 2022, the audits initiated reached 252 taxpayers, and actions were completed for a total liquidated amount of 28.2 million euros on 97 taxpayers who were artificially located in other countries, and for whom it was determined that they actually had effective residence in Spain.

The relevance of information from abroad

In recent years, the Agency's various delegations have seen their capacity for action on undeclared income reinforced by successive European directives on the automatic exchange of information, standardized OECD mechanisms and other agreements.

Last year, the inspection control on taxpayers for whom information on financial accounts abroad has been received through the European 'DAC2' directive, the OECD CRS standard and the 'Fatca' agreement with the US allowed the settlement of 201 million of euros (52.3% more) to 488 taxpayers, so that since 2017, the year in which this information began to be received, the Agency's Inspection area has already settled 963 million to 2,768 taxpayers.

Also in order to uncover funds hidden abroad, the information gathered by the National Fraud Investigation Office (ONIF) of the Inspection Department on the use of cards issued abroad (offshore cards) has allowed the various territorial departments of the Agency to settle debts amounting to 79 million euros last year, a figure similar to that of the previous year, while files were opened affecting 69 taxpayers with offshore cards and which will offer additional results in the future.

ONIF investigations

The above data on offshore cards are part of the results, in terms of debt settlement, that occur as a consequence of part of the ONIF's annual activity. Within this activity, the preparation of the so-called 'FITT' forms (Information Forms with Tax Significance) stands out, which the Office sends to the different delegations of the Tax Agency for the possible regularization of tax contingencies. Last year, the ONIF sent 353 FITT files for analysis. In turn, those submitted in recent years enabled the Agency's delegations to settle a total of 535 million euros to 410 taxpayers in 2022, including a specific large-value file.

Submerged economy

At the same time, the Agency has continued its monitoring activities over the past year to uncover hidden economic activity. In 2022, it carried out 2,312 inspections under different verification programs (the aforementioned 1,407 in the field of control of economic activities and the rest in other programs) in which it discovered hidden sales, regularizing quotas for an amount of 435 million euros, 8.8% more than the previous year.

In the same period, fees and penalties amounting to 122 million euros were settled in more than 2,600 inspection reports for a thousand taxpayers who had previously been subject to entry and registration actions with the support of the Computer Audit Units, the UAI. Last year, these units participated in more than 1,500 operations with computer dumps that facilitate the discovery of hidden income, allow for improved evidence collection and reduce the duration of checks.

This activity affects actions spread across the entire national territory, including those carried out within large coordinated macro-operations with entries and records that are being developed to discover hidden economic activity and detect software for concealing sales in specific sectors of activity. As a result of these macro-operations carried out over the last decade (a total of 21 up to last year), and adding the 15.7 million settled in 2022, the overall balance of these actions amounts to 386 million euros settled in more than 2,000 files.

The inspection activities in the field of combating the black economy are complemented by the plan of visits. In 2022, the Agency carried out more than 29,000 on-site inspections ('combing') aimed at on-site monitoring in sectors and areas of fiscal risk. Among these actions are almost 9,800 related to the 'VAT Visit Plan' and almost 1,800 complementary visits to the sectoral entry and registration macro-operations.

On the other hand, and in relation to the control of submerged rents, the induced effect of sending tax data notices to alleged landlords during the last Income Tax campaigns continues to stand out. Taking into account both the full effect of each notice in the initial year and the marginal impact of previous campaigns in each year, in the last six years these notices have led to the incorporation of more than 1,182,000 declarations that include income from real estate capital, with a higher declared tax base of more than 7.7 billion euros and a collection associated with these campaigns estimated at 933 million euros.

Collection control

As regards the necessary control to ensure debt collection, the Agency's Collection Department has continued to promote the most qualified actions to achieve effective collection of settlements and fight fraud in the collection phase. The total outstanding debt fell by 3.8% last year to reach its lowest level in 13 years.

By type of action, the growth in referrals of responsibility stands out (31,313, +7.7%), continuing the trend of recent years, in which an effort has been made to increase actions of this nature, sometimes of great complexity and importance. Likewise, and with the same objective of securing the effective collection of debts, 4,797 precautionary measures have been adopted, 5% less than in 2021 but 27.6% more than two years ago.

The combined effect of both tools has allowed debt collection last year amounting to 1,036 million euros, 45% more than the previous year.

At the same time, the number of legal actions (1,101, +6.3% compared to 2021 and +90% compared to 2020) taken last year to collect debts continues to grow. These actions judicialize the demand for payment in particularly serious situations of apparent insolvency, debt collection and, in general, complex concealment practices.

The number of investigations into financial transactions reached 65,210 last year, in line with the results of two years ago. These actions are aimed at prosecuting the use of fraudulent schemes such as the interposition of companies or the use of front men.

Meanwhile, requests for information or seizure from foreign authorities for debt collection (a total of 1,806 requests) decreased by 8% compared to 2021, but were 6.1% above 2020 levels. The usual presence of officials from the Collection Area has also been restored, through visits and appearances, to carry out executive actions and obtain information. In 2022, 14,120 such visits were made, returning to the pre-pandemic dynamic.

Fight against smuggling

During the past year, the usual tasks of controlling special and environmental taxes, customs control and in the area of smuggling, drug trafficking, money laundering and other economic crimes were also carried out. In terms of smuggling, more than 40 tons of cocaine and 83 tons of hashish were seized, and 6 million packets and 117 tons of cut tobacco and other tobacco products were seized, while 1.1 million counterfeit products were intercepted.

The Tax Agency has also maintained its usual activity of collaboration with the justice system and with other administrations at the national and international level, and has promoted fraud prevention through information and assistance tools and cooperative forums in which the Agency participates.