Possible error on Modelo 100 tax return

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El Cid
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Re: Possible error on Modelo 100 tax return

Postby El Cid » Sun May 28, 2017 11:14 pm

The link you post covers the annuity situation. The only real question is whether the annuity actually qualifies for the tax relief. The important thing is how you acquire the annuity. If you bought it yourself as part of an insurance payout or even from your own funds it qualifies,

If it was arranged for you automatically as part of your pension payments it does not qualify.

The problem is that, although these annuities are available in Spain, for some reason gestors do not seem to be aware of them. That is one of the reasons why I prefer to do my tax declaration myself because I do not have to justify exactly what type of annuity I have (although as I purchased it personally from my pension fund it clearly qualifies.

You will never get a gestor to admit they are wrong, it would destroy their credibility.

A friend had a tax situation last year with regard to the new rules about UK Government pensions.The gestor did not allow for this so he told them exactly what to do. They still got it wrong to the tune of €6000 in his favour. He went to the tax office and they agreed with the calculation which was clearly wrong (it should have resulted in an additional tax bill of €2k)

That's why I have always done my own tax returns - they have the right to challenge what you say, but if you end up paying them a significant sum in tax, they are unlikely to challenge what you say.

Sid

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fyfin
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Re: Possible error on Modelo 100 tax return

Postby fyfin » Mon May 29, 2017 9:30 am

Well I'm shocked !! This morning I received an email from my gestor to apologise - in fact it was a complete turnaround. He has asked me to make an appointment with the lady who does the tax returns where they will resubmit them and arrange a refund. My last email showing the link seems to have activated them and they now agree that even different tax inspectors have different opinions.

Interestingly Sid, I felt slightly uncomfortable with the previous returns as one of the annuities had contributions from an employer and as such I thought it might not qualify, but the previous lady said if it has the word annuity she would enter it as such. I am now presented with another slight quandary, do I ask for this annuity (I have 4 altogether) to be considered as normal pension income and the other 3 as savings income (rentas vitalicas imediatas).

Or do I just let them lump the whole lot under the annuity heading as they are now suggesting.

I was all set to go in with all guns blazing today and now there's been a total surrender - still can't get over it, but it appears my insistence that I was right (at least in part) has made them look at the other returns they have done for other clients.

I think I'll have a brandy with my coffee this morning, and I know my wife will be pleased, because this all kicked off just as we went to Roquetas for a 4 day break, and the topic of conversation seemed to get around to Spanish taxation quite a lot! lol

Sid, as always I appreciate your input and I am seriously considering doing my own returns from now on, it was just laziness that I didn't in the first place.

Incidentally, I don't know what exchange rate they used as I can't reconcile the figures, although I think that the rate is arguable - I used €1.2234/£ and I know it is issued at the end of the year but I can't find the link for 2016 and I don't know where I found it now.
A man likes his wife to be just clever enough to appreciate his cleverness, and just stupid enough to admire it

El Cid
Andalucia Guru
Posts: 13491
Joined: Sun Oct 24, 2004 10:42 pm
Location: La Herradura, Costa Tropical, Granada

Re: Possible error on Modelo 100 tax return

Postby El Cid » Mon May 29, 2017 10:42 am

I don't think it matters that the employer made contributions as the money paid in is yours. The key point is whether you made the decision to invest it in the annuity. If it was a company scheme which automatically converted into an annuity then I think that would be different. It's very difficult to get a definitive ruling. I would just go ahead and keep it the same as you have been doing. Any changes you make are more likely to trigger questions compared to leaving it the same.

I am not aware of an official source for the average exchange rate. The Bank of Spain issues an official rate for year end calculations such as for wealth tax or Form 720. I usually get it from the ECB figures or one of the FX companies. I have rounded off the figure in the FAQ to 1.22 which covers most of the published options.

Sid


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