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The hearing procedure is essential when the settlement or penalty proposals are rectified
According to the case law of the Supreme Court, it is necessary to offer a new hearing when a proposal to impose a penalty is rectified (even to reduce it), so that its omission determines the nullity of everything that has been done. The Audiencia Nacional has already concluded in the same way when it […]
The DGT stresses the concept of autonomous economic unit in relation to indirect taxation in the hotel sector
Indirect taxation on the acquisition of hotels in Spain is in a state of considerable legal uncertainty, despite the numerous binding rulings of the Directorate General of Taxes (DGT) which reiterate a solid and long-standing criterion. The core issue of this debated matter lies in determining when the transfer of a hotel property is subject […]
For the deduction of the financial burden in leveraged buy-outs, the economic substance of the transactions as a whole must be considered
According to the Directorate General of Taxes (DGT), for the calculation of the ratio applicable to leveraged buyouts, the possible splitting of the debt must be disregarded, i.e., any debt assumed by the entities of the acquired group that is used directly or indirectly to satisfy the acquisition price must be considered. The Corporate Income […]
The Spanish rules on withholding taxes on dividends paid to foreign shareholders are contrary to EU law
According to the Court of Justice of the European Union, the Biscayan rules on non-resident income tax grant different treatment to withholdings borne by national shareholders as compared with those borne by non-resident shareholders, which is contrary to the Treaty on the Functioning of the European Union. The distribution of a dividend by a company […]
The new waste tax and its numerous questions
Law 7/2022, of 8 April, has incorporated the obligation for all municipalities in Spain to approve a tax or a public non-tax financial contribution that adheres to the principle of “the polluter pays”. Below, we analyze some of the questions raised by this obligation. Directive (EU) 2018/851 of the European Parliament and of the Council […]
The Spanish participation exemption on dividends and capital gains is a “full exemption” for the purposes of the Controlled Foreign Company regime
According to the Directorate General of Taxes, exempt dividends and capital gains obtained by foreign holding companies do not have to be declared in Spain. Controlled Foreign Company (CFC) regimes are traditionally anti-abuse rules aimed at avoiding the deferral of taxation of income – normally of a “passive” or non-business nature – in controlled foreign […]