Beyond the structure used by Don Juan Carlos on the alleged use of opaque cards by the Royal Family, the final regularization that proceeds in these cases points to the declaration of assets and rights abroad, the so-called model 720, which must be presented when you have more than 50,000 euros outside of Spain in bank accounts, shares or other assets such as paintings or real estate. Precisely, this obligation was established in 2013 by the Anti-fraud law approved by former Finance Minister Cristóbal Montoro to toughen the fight against the underground economy after the tax amnesty of 2012 and includes that raised income does not prescribe. This characteristic, together with its high penalties that can amount to 150%, were the reason for the European Commission to sue Spain before the Court of Justice of the European Union for considering the regime “disproportionate”. Now, the King’s father may be considering filing a similar statement.
What if I submitted it now?
Like the Income Tax return, the 720 model has a term that every year starts on January 1 and ends on March 31. To deliver a declaration of goods abroad now, that is, after the deadline, the corresponding penalty is 100 euros per data not presented on time with a minimum of 1,500 euros in the case of the hypothetical case of an extemporaneous declaration without prior requirement. The presentation would be made before the Tax Agency.
What taxes should I pay?
Presumably, undeclared income must pay the highest income tax margin that applies in Madrid, 43.5%. To this would be added the aforementioned sanctions for data not presented and a 20% surcharge for having declared late. To this must also be added the corresponding default interest, 3.75%, on the installments not paid to the Treasury. In cases of unjustified capital gains, The Treasury can impose a penalty of 150% of the personal income tax quotaAlthough in the face of doubts about the legality of this fine from Brussels, the TEAC has annulled several sanctions of this type in recent years, so it is unlikely that this amount would be imposed.
Amounts not declared abroad must be taxed regardless of the date they were received, since the 720 model does not prescribe. What it does prescribe is the tax offense, for fraud exceeding 120,000 euros and which is punishable by penalties of one to five years. In these cases, the last four years apply as a non-prescribed period.
Should I make more statements?
If you have not declared assets in Spain, you will have to present the corresponding complementary ones, beyond the use of the supposed opaque cards.
Have there been more cases?
From Rodrigo Rato to Cristiano Ronaldo they have sent information to the Treasury through this procedure, which has aroused suspicions from the Treasury until subsequent investigations. The 720 model has received information of 156,122 million euros of more than 100,000 Spaniards abroad, with Switzerland, Andorra, Luxembourg and Bermuda being some of the majority jurisdictions where this heritage rests