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(Updated March 2022)

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Sanctions and effects

By Act 5/2022, of 9 March, which amends Act 27/2014, of November 27, on Corporation Tax, and the revised text of the Non-Resident Income Tax Act, approved by Real legislative Decree 5/2004, of 5 March, on hybrid asymmetries, the legal regime for infringements and penalties for the informative declaration (form 720) in accordance with the Court of Justice of the European Union (STJUE) judgment of 27 January 2022, in Case C-788/19.

The penalty regime applicable to the informative tax return (Form 720) is the general regime established in Articles 198 and 199 of Act 58/2003, of 17 December, General Tax. Its regulatory development is contained in Articles 14 and 15 of Royal Decree 2063/2004 of 15 October, which approves the General Regulation of the Tax Sanction Scheme.

These articles (both in the Act and in the Regulation) govern the tax infringement, respectively, as they do not present self-assessments or returns without that there is economic harm to the Public Treasury, and the tax infringement due to incorrectly submitting self-assessments or returns without causing economic harm to the Public Treasury.

These sanctions are applied independently for each of the three reporting obligations contained in the informative tax return form 720, as each of them constitutes a different reporting obligation.

In this particular case, in the event of the lack of filing of the informative tax return (Form 720), the tax infringement would be applicable because submit self-assessments or returns without causing any economic harm to the Public Treasury (regulated in Articles 198 LGT and 14 of the General Taxation Regime).

Regulations:

Articles 198 and 199 of the General Tax Act 58/2003 of 17 December (Articles 14 and 15 of the General Tax Sanctionator Scheme) establish the tax offences applicable for the informative tax return form 720.

This regime of infringements and sanctions is established independently for each of the three reporting obligations.

Each of the blocks of information below is a different reporting obligation:

  • Accounts in financial institutions abroad. This reporting obligation is governed by Article 42 bis of the General Regulations on the actions and procedures of tax management and inspection and on implementation of the common rules of procedures for the application of taxes, approved by Royal Decree 1065/2007, of 27 July.

    (Form 720 corresponds to the value of the "Type code of good or right" C ")

  • Securities, rights, insurance and income deposited, managed or earned abroad. This reporting obligation is governed by Article 42 ter of the above-mentioned General Regulations approved by Royal Decree 1065/2007, of 27 July. (In form 720, it corresponds to the values of the field 'Type of asset or right code' 'V', 'I' and 'S').

  • Property and rights to real estate located abroad. This reporting obligation is governed by Article 54 bis of the General Regulations approved by Royal Decree 1065/2007, of 27 July. (In form 720, it corresponds to the value of the 'Type of asset or right code' 'B')

    Articles 42 bis, and of Royal Decree 42/54 of 1065 July also establish the definition of the concepts: 2007 27 "Data" and "dataset" for the purposes of imposing sanctions for the commission of tax offences.

In this case, article 199 LGT and 15 of the General Tax Sanctions Regime is applicable, which regulate the tax infringement due to incorrectly submitting self-assessments or tax returns without economic damage to the Public Treasury.

This regime of infringements and sanctions is established independently for each of the three reporting obligations.

Articles , and of the RGAT must be in accordance with the provisions of the three reporting obligations (form 42) and also establish the definition of the concepts: 42 54 720 "Data" and "dataset" for the purposes of imposing sanctions for the tax infringement fee indicated.