Among the main measures contained in Law 11/2021, of 9 July on the prevention and fight against tax fraud regulation, (Ley 11/2021, de 9 de julio, de prevenciĂ³n y lucha contra el fraude fiscal) , are the limitation of cash payments and the threshold for appearing on the list of tax defaulters, or the question of the reference values to be considered for certain taxes. It also strengthens the instruments to prosecute avoidance by large multinationals through abusive tax planning. And it modifies the regime of surcharges, deferrals, inspection, penalties and a long etcetera
With regard to the specific measures to combat fraud, it includes the limitation of cash payments for certain economic operations, from 2,500 to 1,000 euros, in the case of operations in which a businessman or professional is involved. In turn, the cash payment limit is lowered from 15,000 to 10,000 euros in the case of individuals with tax domicile outside Spain.
On the other hand, the debt threshold for appearing on the list of debtors has been lowered from one million euros to 600,000 euros. Jointly and severally liable persons are also included in the list of debtors.
Control over the cryptocurrency market is also strengthened, establishing new reporting obligations on holdings and transactions with virtual currencies, especially in relation to exchange houses and wallets.
The Law also obliges Public Notaries to suspend any Public Deeds referred to any business or company which has a Fiscal Number or VAT recording (NIF) blocked, mainly due to unfulfillment of tax obligations.
NEW REFERENCE VALUES FOR Transfer, Inheritance and Gift Tax
The reference value of the Cadastral Office  becomes, as from 1 January 2022, the taxable base for property taxes, i.e. Transfer Tax and Stamp Duty and Inheritance and Gift Tax. This same rule will be applicable to Wealth Tax for properties whose acquisition, whether for valuable consideration or for profit, has been based on the reference value of the Cadastre.
It should be remembered that the reference value is different from the cadastral value and therefore, this rule does not affect in any way the taxes that use the cadastral value as the taxable base. Therefore, IRPF, IBI and the Tax on the Increase in the Value of Urban Land are excluded.
PENALTY SYSTEM AND SURCHARGES
Changes are envisaged in the system of reductions applicable to tax penalties and in the system of surcharges in order to achieve greater simplification and encourage voluntary payment.
In this regard, the following changes are introduced to the reductions applicable to tax penalties:
On the one hand, the reduction of penalties derived from assessments with agreement is raised to 65 percent (previously 50 percent).
On the other hand, the reduction of penalties in the case of prompt payment is increased to 40 percent (previously 25 percent). The reduction for compliance is maintained at 30 percent (Article 188. 1 and 3 LGT is reworded).
A transitional regime is established, according to which the increases in the previous reductions will be applied to penalties agreed prior to their entry into force, provided that they have not been appealed and have not become final. For this purpose, the competent tax administration shall rectify such penalties.
In addition, the increase in the reduction of penalties in the event of prompt payment to 40% also applies if, from its entry into force and before 1 January 2022, the interested party accredits to the competent tax administration the withdrawal of the appeal or claim lodged against the penalty and, where appropriate, of the appeal or claim lodged against the settlement from which the penalty derives.
The surcharge system is modified in two respects:
First, in the system of accrual of late payment interest in the case of obtaining an improper refund, it is detailed that when the taxpayer voluntarily regularises their tax situation, reimbursing the amount of the refund improperly obtained, the surcharges relating to the filing of late returns without prior notice will be applied, in modification of Second, the system of surcharges for late payment without prior notice is modified, establishing a system of increasing surcharges, with the surcharge being 1% plus an additional 1% for each full month of delay and without interest for late payment until the twelve-month period of delay has elapsed. From the day following the expiry of the twelve-month period, in addition to the 15 percent surcharge, interest for late payment shall accrue.
Likewise, those who regularise, by filing a tax return or self-assessment, a tax conduct previously regularised by the Tax Administration for the same tax concept and circumstances, but for other periods, not having been subject to a penalty, are exempt from these surcharges, provided that they are regularised within six months from the notification of the assessment and that no request for rectification of the return or self-assessment is filed, nor is an appeal or claim filed against the assessment issued by the Administration.
SANCTIONING PROCEDURE
The maximum period for initiating penalty proceedings (209.2 LGT) is increased from three to six months, provided that they are initiated on the basis of assessments or rulings issued in a procedure initiated by means of a declaration, data verification, verification or inspection, bringing it into line with the general period for resolving tax procedures. The period for initiating the procedure for the imposition of non-monetary penalties is also extended from three to six months.
Carlos Espinosa
Solicitor & Tax Adviser
+34 627 41 32 01
carlos.espinosa@iurisnautic.comÂ
