ADMINISTRATIVE TAX SANCTIONS-INFRACTIONS AND SANCTIONS

I-APPROACH.

Main features :

-a-Tax sanctions in Spain are mostly administrative.

-b-The General Tax Law, typifies tax offenses, as well as specifies the sanctions that correspond to each of them.

-c-Once offense is typified ; then the basis of the sanction is obtained ; later it is classified as mild, serious, or very serious; and finally the sanction is applied.

II-ADMINISTRATIVE SANCTIONS.

Administrative sanctions are applied in the lower and most common section of fraud, that is :

-a-Frauds to the State, Autonomous, or Local Treasury of up to 120,000 € Euros.

-b-Frauds to the Community Treasury of up to 50,000 € Euros.

-c-Fraudulent obtaining of subsidies from the State, Autonomous Treasury. o Local up to 80,000 € euros ; or Community Treasury up to 50,000 € Euros.

III-LATEST UPDATES.

In this last General Tax Law 58/2003 of December 17, in reference to the previous one, the following stands out :

-a-All possible tax offenses are classified jointly ; and it will be when regulating the sanction that corresponds to each one, where its qualification is made, as: slight, serious, or very serious.

-b-The concept of "the base of the sanction" is introduced, constituted by the amount on which the percentage in which the fine is specified is applied.

IV-CLASSIFICATION OF SANCTIONS AND TAX INFRINGEMENTS.

They are the following :

-01-Tax Violation for not paying the tax debt, which should result from a self-assessment.

-02-Tax infraction for failing to comply with the obligation to present completely and correctly, declarations or documents necessary to carry out liquidations.

---021-Concept--Constitutes a tax violation, failing to comply with the obligation to present in a complete and correct manner, the necessary declarations or documents, including those related to customs obligations, so that the Tax Administration can carry out the appropriate declaration of those taxes that They are not required by the self-assessment procedure, unless it is regularized.

---022--Basis of the Sanction :

---0221--Amount of the settlement, when no declaration has been submitted.

---0222--The difference between the amount resulting from the proper settlement of the tax, and the amount that would have been applicable, according to the declared data.

-03-Tax offense for improperly obtaining refunds.

-04-Tax offense, for improperly requesting refunds, benefits, or tax incentives :

---04A--Improperly request returns.

---04B--Improperly requesting benefits or tax incentives.

-05-Tax infringement to be determined, or improperly accrediting positive or negative items, or apparent tax credits.

-06-Tax offense for incorrectly allocating, or not allocating, tax bases, income or results, by entities subject to an income allocation system.

-07-Tax offense for incorrectly allocating deductions, allowances, and payments on account, by entities subject to an income allocation regime.

-08-Tax infringement for not submitting self-assessments or declarations within the term, without causing economic damage, for breaching the obligation to communicate the tax domicile, or for breaching the conditions of certain authorizations :

---08A--Failure to present self-assessments.

---08B--Obligation to communicate the tax domicile.

---08C--Customs authorities authorizations.

-09-Tax infringement for incorrectly presenting self-assessments or declarations without causing economic damage or responses to individualized information requirements :

---09A--Incorrect presentation of self-assessments or declarations.

---09B--Answers to individualized information requirements.

---09C--Customs declarations and documents.

-10-Tax offense for failing to comply with accounting and registry obligations.

-11-Tax offense for failing to comply with billing or documentation obligations :

---11A--Billing obligations.

---11B--Excise tax circulation documents.

-12-Tax offense, for failing to comply with the obligations related to the use of the tax identification number, or other numbers, or codes.

-13-Tax offense due to resistance, obstruction, excuse, or refusal, to the actions of the Tax Administration.

-14-Tax infringement for breaching the duty of secrecy required of retainers, and those forced to make deposits on account.

-15-Tax infraction for breaching the obligation to correctly communicate data to the payer of income, subject to withholding, or payment on account.

-16- Violation for failing to comply with the obligation to deliver the withholding certificate, or payments on account.