The survey on great fortunes would amount to 38 billion euros, half of European non-refundable funds


Experts from the Spanish Ministry of Finance (GESTHA in its English acronym), who form the most representative group within the Ministry and the Tax Agency, believe that the survey on large fortunes would raise half of non-refundable European funds, after the International Consortium of Investigative Journalists (ICIJ) uncovered the secret files of 14 law firms that reveal dark companies of politicians, millionaires and artists from more than 90 countries.

More specifically, GESTHA calls for strengthening of tax investigations into the most serious tax crimes and fraud in order to plug the hole through which 38 billion euros – half of the non-reimbursable Next Generation European funds – escape due to the greater differential of the underground economy in Spain compared to the European average, as well as to reduce the 41.911 billion in outstanding tax debts in 2020, and to avoid the 82% drop in reports to the Public Prosecutor’s Office of tax crimes and 72% in criminal quotas discovered, mainly due to the current limitation of the powers of connoisseurs. In this perspective, they recall the importance of creating a Senior Tax Service.

In this context, GESTHA believes that the Pandora Papers reveal the weaknesses of the tax agency, that it urges to allow the experts to immediately start investigating the persons mentioned in these documents in order to settle the proceedings or to file a complaint for possible fiscal offenses committed.

Despite the time mentioned in the Pandora Papers, if these persons have not included the ownership of these offshore companies or assets abroad in the model 720 of assets abroad, these amounts will be classified as unjustified capital gain which will have to be taxed in the general base of the income tax of the last non-prescribed year, in general in the personal income tax 2017.

Consequently, any property abroad not declared in the model 720 for an amount greater than 250,000 euros for residents in Catalonia, 275,862 euros in Madrid or 267,000 euros in the Autonomous Communities with a maximum marginal rate of 45% in 2017, could be the subject of an alleged offense against the Treasury.

Too many precedents

GESTHA criticizes the slowness of the Treasury in investigating people with opaque accounts at LGT Bank in Liechtenstein, HSBC in Switzerland, Panama Papers in 2016, Castellana Papers, Paradise Papers, or the accounts of the King Emeritus, allowing them to declare “voluntarily” and pay after the deadline, avoiding penalties for crimes and fines or penalties for escapes committed.

For this reason, tax experts ask the Agencia Tributaria to act quickly to prevent those people with significant income and assets from regularizing their affairs before an audit is initiated, as they belong to the group of people. and companies which, with multinationals, are responsible for 70% of estimated tax evasion in the country.

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