We share a press release issued by the Court of Justice of the European Union in relation to an important Judgment regarding Form 720 of declaration on assets and rights located abroad.
Through this communication, it is reported that the Court of Justice of the European Union has issued a ruling that declares contrary to Union Law the Spanish legislation that obliges tax residents in Spain to declare their assets or rights located abroad through the Model 720.
According to the Court, the obligation to submit Form 720 and the sanctions derived from its non-presentation or extemporaneous presentation, establish a difference in treatment between residents in Spain based on the location of their assets, which constitutes a restriction on the free movement of capital.
For the moment, the full content of the Judgment has not been accessed, although the content of the communiqué shows that this pronouncement should put an end to Form 720.
Once the Judgment is published, its content will have to be analyzed in detail, and it will also be necessary to monitor the actions that the Spanish executive adopts in this regard, in order to be able to conclude on a series of issues that are currently up in the air:
- If with respect to fiscal year 2021, the obligation to submit Form 720 will be maintained, whose presentation deadline is March 31, 2022.
- If for 2022 and future years the obligation to submit Form 720 will be removed.
- If the Judgment will open the door to be able to claim the amounts paid by the taxpayers for the sanctions and regularizations that, due to the non-presentation, or extemporaneous presentation of the model, the Tax Administration has filed.
From addwill we will keep you informed and we are at your disposal for any questions you may have on this subject.
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