This new scheme has been created
by the Spanish Inland Revenue to fight against 'unsupportive
people' and those who break their tax liabilities. Features
of this plan against tax fraud can be summarized as follows:
Strengthening
of information exchange beetwen Public Administration bodies
at different levels such as international, national, autonomic,
local and public registries.
Encourage
citizens to report tax fraud (as is done in other countries).
Support
of Spanish law enforcement agencies.
Strengthening
of the inspector's appearence on the streets.
Reinforcement
of international information exchange through the collaboration
of EU member states in order to avoid frauds.
Reinforcement
of investigation in the real estate sector. According to
the Spanish Inland.
Revenue,
there is a rampant social perception that fraud is widespread
in this sector. In order to reinforce fiscal investigation
in this field, several measures are proposed:
- Tenants shall include their
landlord's fiscal identification number on their respective
income tax return forms.
- Investigate the hiding of
property's ownership.
- Conveyances made for a lower
value than its appraissed value will be analyzed.
- The use that owners are making
of the properties declared as unoccupied properties (almost
3 million properties in Spain) will be investigated.
- Give a special control to
companies related to this sector, i.e. real estate developers,
construction companies, temporary joint ventures, real
estate agencies, etc.
- Special attention to ownership
and use of propreties by non-residents, as there are many
cases where non-resident owners do not declare their properties.
- Special attention to concealment
of exploitation of leased premises.
- Fiscal benefits obtained by
tax-payers for their main residences will be verified.
Coordination
between cadastre and property registries to improve the
information regarding the real estate sector and to collaborate
in the investigations.
Inspections
of real estate developements, agencies, leases, etc.
False
invoices to real estate related companies issued by contributors
who use a modular tax system.
Misrepresentation
of specified values in title deeds.
Avoid
fraudulent asset-stripping of companies whose properties
will be seized.
Investigate
unregistered conveyances.
Investigate
laundering of money derived from illicit activities.
Increase
the number of architects working for the Spanish Inland
Revenue.
Prices
stated in title deeds by reviewing the prices published
on the Internet for real estate developments
will be verified.
Use
of laundered money to perform building restorations.
Checking
of subcontractors employed by construction companies.
Control
the second hand property transmissions made between private
individuals.
Control
of leasings made between private individuals.
Increase
visits of tax inspectors in properties declared as unoccupied
or free of tenants.
Proposal
to enforce the public notaries to demand the fiscal identification
number and cadastral reference in
sale agreements.
Control
of the deduction benefits taken from the acquisition of
properties, i.e., when the contributor
sells a property and purchases a new one without discounting
the fiscal deduction from which
they previously benefited.
Control
the conveyance and reinvestement dates.
Obtaining
data about water and electricity supply from properties
which are listed as unoccupied.
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Tax
Inspectors take to the streets
March 2005
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