The Supreme Court has begun to apply the doctrine established in January by the Court of Justice of the European Union (CJEU) on the declaration of assets abroad through the Model 720, and has urged the Treasury to return fines imposed for this concept.
In a judgment dated June 20, the contentious chamber upheld the appeal filed by two taxpayers against a judgment of the High Court of Justice of Extremadura, which condemned them for declaring, out of time, real estate abroad and located in the Portuguese municipality of Elvás.
Following the ruling of the CJEU, the Treasury reduced the penalties for failure to comply with the obligation to declare assets abroad, taking advantage of the processing in the Senate of the law that regulates the so-called "hybrid asymmetries" to modify the regulations of the obligation to declare assets abroad, the so-called model 720, in accordance with the provisions of the CJEU.
In January, the CJEU declared illegal the non-applicability of the statute of limitations and the penalties associated with Form 720, considering them disproportionate, a criterion that has been taken up by the Supreme Court, in a ruling that establishes doctrine.
The high court recalls that the assets, located in the Portuguese municipality of Elvás, were acquired in tax years already prescribed, and emphasizes that "the legislator may establish an extended statute of limitations period in order to ensure the effectiveness of tax controls and to combat fraud" by hiding assets abroad".
But this "provided that the duration of this period does not go beyond what is necessary to achieve these objectives", without being able to "extend indefinitely the period during which the imposition may be made or to render ineffective a statute of limitations that has already expired".
In the present case, the possibility of the Tax Administration acting "without time limitation and even questioning a statute of limitations that has already expired" could occur if the taxpayer had not complied with its obligation to inform the Treasury, which is not the case.
If you have received any sanction derived from the filing of the 720 model, do not hesitate to contact Vicox Legal to know how to declare cryptocurrencies and to claim before the Tax Authorities any undue collection.
