The Court of Justice of the European Union has put its focus on model 720 of the Spanish Treasury.Through this model, the people residing in Spain declare the goods, bank accounts or actions they possess abroad.Through a firm judgment, the Superior Court of Justice of the European Union has just forced the Tax Agency to reduce the sanctions imposed on the self -employed and the rest of the taxpayers for, or not to have declared their assets in anothercountry, or have erroneous.

The European Court ruling highlights that the fines for the breach of the 720 model are "disproportionate" since, in many cases, "the sanction may be higher than the value of the good that has not been declared".And it is that currently in Spain, a person who does not declare the assets he has abroad or who makes an error in the completion of the 720 model, "is exposed to a 150% penalty on the value of the unst declared and other fines5.000 euros for each set of data that have been omitted or that the Treasury discovers that they are wrong, "said Joan Torres, president of the Spanish Federation of Professional Associations of Tax Technicians and Fiscal Advisors (FETTAF).

But the modification of the sanctioning regime is not the only thing that the Tax Agency must correct.The Superior Court of Justice of the European Union also includes in its judgment the prescriptive nature of the model.Although as a general rule, tax actions prescribe at four years, in this specific case, the action of not declaring a good or bank account abroad is something that does not prescribe in our country.From Brussels they do not understand why this breach does not align with the consequences of others, and requires the AEAT to modify that law to prescribe at four years.The term of the Ministry of Finance and Public Function to redirect both modifications end.

Europe disapproves of sanctions and imprescriptibility

Keep in mind that despite the fact that the 720 model is a model that those taxpayers residing in Spain must present before the Treasury who have banking assets, actions or accounts abroad for an amount of more than 50.000 euros, "this not only affects self -employed or taxpayers of a lot of money," said Fettaf president."The case of a professional who lives in Spain can occur but an inheritance of, for example, France.If that inheritance is an apartment whose value exceeds 50.000 euros would already be obliged to declare it and, if it does not, to carry with the consequent fines, "added the fiscal expert.It is a case that binds to self -employed who have rented premises or homes abroad, shares in a non -Spanish company or even business.

Hence, the European Court's judgment considers them disproportionate.The TJUE criticizes the sanctioning regime, both with respect to the fixed and proportional type sanctions and the accumulation of the same.Europe does not understand the high type of taxable fines, which gives it an "extremely repressive character", and which, in addition to discouraging compliance, constitutes a "disproportionate impairment from the free circulation of capital".

However, the only aspect that the sentence annuls completely is the imprescriptibility regime of profits that could be revealed for not declare the goods and rights in the deadline, or declare them incorrectly."The possibility that the Tax Administration may proceed without temporary limitation to the regularization of the tax due by the amounts corresponding to the value of the goods or rights located abroad and not declared, or declared imperfect or extemporaneous, produces an effect ofImpressibility that also allows the Treasury to question an already consummated prescription in favor of the taxpayer, violating, in the opinion of the TJUE, the fundamental requirement of legal certainty, "said Fernando Santiago, president of the General Council of Colleges of Administrative Managers of Spain.

Hacienda has to modify it before March 31

The deadline that Europe has put to the Tax Agency to modify in the law regulating the 720 model ends on March 31.Something that, it seems, takes into account the Minister of Finance and Government spokesman, María Jesús Montero, who said at the press conference last Friday that the Government "will soon modify" the 720 model of declaration of goods in theForeign, although he recalled that "will continue in force, although with other guidelines".

Motero explicó tras la rueda de prensa de presentación de datos de recaudación tributaria, que la intención del Ejecutivo es aprobar la modificación de la norma antes de que termine el plazo de presentación de este ejercicio, el 31 de marzo, y que para ello se aprovechará alguna de las leyes actualmente en tramitación: "creemos que es más adecuado hacerlo por este mecanismo que no por el mecanismo del decreto ley".He also insisted that they will "reformulate quickly, once we carefully read the small print, all aspects that must be corrected".

On the other hand, the Executive wanted to make it clear that the TJUE "has not declared the model itself illegal, but it only urges us to modify some aspects".In the words of the Minister of Finance this sentence is nothing more than an "Informative Declaration".So the model is still in force and the self -employed and taxpayers found in this situation until March 31, 2022 to present the 720 model.

For managers it was "the chronicle of an announced death"

Administrative managers have also wanted to echo the ruling of the Judgment of the Superior Court of European Justice and have assured that, in their opinion, it was "the chronicle of an announced death, excessive and discriminatory.The sentence does not annul the 720 model, but shows the contradictions of this standard with the principle of free movement of capital;and highlights the high of its sanctioning regime.Now, it is time to put the batteries and rebuild these specific parts of the 720 model, with the added difficulty of being in the middle of the period of presentation related to exercise 2021, "said its president, Fernando Santiago.

For the expert, the sentence is based on a key issue: the difference in treatment between residents in Spain based on the place of location of their assets, which is a restriction to the free circulation of capital."It is not the same as those who have their assets in Spain as the one who has them in Germany," Santiago criticized.Who expects to "win in legal certainty when the modifications that this judgment requires" are carried out ".