The Spanish Tax Agency has recently launched a special plan to check on taxpayers who repeatedly record tax losses on their Corporate Income Tax returns, which can be carried forward and offset in subsequent periods. The move was revealed in the 2020 General Tax Control Plan, which was recently published and notably includes plans to review pending tax loss carryforwards to be offset in upcoming periods.
The Tax Agency and the General Council of the Notariat (“Consejo General del Notario”) have also signed a deal to give the Tax Agency direct access to notary databases that include information regarding companies’ real beneficial ownership.
Having systematic access to notaries’ information regarding beneficial ownership of companies will allow the Agency to improve controls over corporate structures of “supposedly” independent entities.
The fact that these types of companies are seemingly unrelated enables their owners to create networks for false invoicing or other fraudulent transactions. These may include reciprocal billing to eliminate group profits, unlawful profit shifting to entities that are not effectively taxed, receiving unwarranted tax refunds, or fraudulent conveyance.