Spain’s Tax Agency will promote the inspection of high net worth individuals using new IT tools created specifically to improve knowledge and selection of risks pertaining to large estates.
These measures, together with a reinforcement of the fight against the shadow economy, particularly in the VAT field, and the regularisation of elusive practices in the area of international taxation, will have special relevance for the Agency’s 2017 tax control plan.
Controlling the assets of high net worth individuals requires the use of sophisticated tools of analysis to investigate and understand complex financial and corporate frameworks. With the existing tools, in the past five years, for instance, the Agency has collected tax debts totalling over €400m from individuals with a net worth of over €10m.
The Agency plans to make a qualitative improvement in the control of assets, using the newly created ad hoc computer tools that facilitate risk analysis and inspections of large estates, analysing changes in individual’s net worth and transfers of income using “aggressive techniques” based on tax planning or the use of intermediary companies to channel personal gains.
In 2017, control actions will be developed based on 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 form, the information will be added to accounts from 54 tax jurisdictions, with the same commitment from 2018 for 47 more.
Multinational tax evasion
In the area of international taxation, throughout 2017, the Tax Agency will work on developing risk analysis models to optimise the use of the information that will start to come in this year on tax rulings and, in 2018, on “country by country” reports. All of this will lead to a substantial increase in the information available to the Tax Agency regarding the taxation of multinationals operating in Spain.
During 2017, the Agency will focus its attention on the correction of elusive practices by multinationals according to BEPS risk areas (Base Erosion and Profit Shifting) of the OECD.
Particular analysis will be carried out regarding aggressive tax planning structures, hybrid structures (with different tax treatment in Spain and a third country), artificial generation of financial expenses, abusive use of intragroup transfer price policies, profit allocation to permanent establishments in Spain of non-resident entities and taxation of operations carried out by residents in tax havens.
Additionally, special attention will be given to the controlling 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.