Tax Form 720 Asset declaration
-
- Andalucia Guru
- Posts: 11081
- Joined: Tue Jun 15, 2004 11:11 pm
- Location: Guadalhorce Valley
Re: Tax Form 720 Asset declaration
Surely they can just check your tax returns without you being there and why do it at this time of year, anyway, when they are inundated with annual resident tax returns and within a few days of the deadline?
Perhaps they don't have much work to do in Extremadura!
Perhaps they don't have much work to do in Extremadura!
Let's go Brandon!
-
- Andalucia Guru
- Posts: 6199
- Joined: Thu Jul 29, 2004 1:42 pm
- Location: Cáceres Province, Extremadura
Re: Tax Form 720 Asset declaration
Yes, they could do the cross-checks themselves but wasn't the 720 declaration nothing to do with the tax office initially? Perhaps they don't have enough to do up here. Perhaps the tax offices on the costas will have rather more to do, than they do here, once they send out their letters. Who knows? I can only report on what happened and thought it might be useful information to forum readers.
-
- Resident
- Posts: 275
- Joined: Sun Jan 26, 2014 4:17 pm
Re: Tax Form 720 Asset declaration
Lavanda- they must be able to cross check your tax form and your 720 without calling you into the office! The staff checking may not be in the same office, but are in the same building, plus all returns are online Seems strange to me !
Even if one is squeaky clean, a letter like this would put the fear of God into many people!
Even if one is squeaky clean, a letter like this would put the fear of God into many people!
-
- Andalucia Guru
- Posts: 6199
- Joined: Thu Jul 29, 2004 1:42 pm
- Location: Cáceres Province, Extremadura
Re: Tax Form 720 Asset declaration
I understand what you are all saying but I haven't made this up. I've reported exactly what has happened but I now wish I hadn't bothered. The tax office in Extremadura is not overworked. There 's less than a million people in the whole place and probably not even a quarter are tax payers. I guess even tax offices need to do something to justify their existence. Anyway, make of it what you will but I didn't think it was that weird - the whole 720 thing is bound to have some sort of follow up. No?
-
- Resident
- Posts: 275
- Joined: Sun Jan 26, 2014 4:17 pm
Re: Tax Form 720 Asset declaration
The only people they should be following are those who should have registered on the Spanish tax system, and haven't!
-
- Andalucia Guru
- Posts: 11081
- Joined: Tue Jun 15, 2004 11:11 pm
- Location: Guadalhorce Valley
Re: Tax Form 720 Asset declaration
There are also probably very few foreigners in Extremadura so the chances of being picked out of the hat are far higher than they would be in a tourist area. They are probably looking upon it as a bit of a novelty.
I remember one member here who said that the tax office couldn't even find his 720 in their system until he gave them the número de justificante.
It is far easier for them to nit-pick people who are in the system trying to do the right thing than it is to go out and find people who are paying nothing at all. That might interfere with their hour long coffee break.
I remember one member here who said that the tax office couldn't even find his 720 in their system until he gave them the número de justificante.
It is far easier for them to nit-pick people who are in the system trying to do the right thing than it is to go out and find people who are paying nothing at all. That might interfere with their hour long coffee break.
Let's go Brandon!
-
- Andalucia Guru
- Posts: 16073
- Joined: Sun Oct 24, 2004 10:42 pm
- Location: La Herradura, Costa Tropical, Granada
Re: Tax Form 720 Asset declaration
Absolutely!Beachcomber wrote:
It is far easier for them to nit-pick people who are in the system trying to do the right thing than it is to go out and find people who are paying nothing at all. That might interfere with their hour long coffee break.
I am amazed that in the twelve months since the first Form 720 was submitted that they haven't been chasing up the obvious suspects.
Loads of people have declared their properties in the UK, unaware of the fact that imputed income tax is due on these properties as they are classified as holiday homes.
They could have a field day chasing up these situations and recoup a serious amount of tax for the last four years. However they don't seem to have bothered with even such a simple exercise!
Sid
-
- Resident
- Posts: 275
- Joined: Sun Jan 26, 2014 4:17 pm
Re: Tax Form 720 Asset declaration
Wasn't 't the statute of limitation abolished for the assets declaration, meaning that they could go back as many years as they liked ?
-
- Andalucia Guru
- Posts: 16073
- Joined: Sun Oct 24, 2004 10:42 pm
- Location: La Herradura, Costa Tropical, Granada
Re: Tax Form 720 Asset declaration
Yes it was but four years would be a good staring point.
Sid
Sid
-
- Andalucia Guru
- Posts: 6199
- Joined: Thu Jul 29, 2004 1:42 pm
- Location: Cáceres Province, Extremadura
Re: Tax Form 720 Asset declaration
Give them time. Like any slow, cumbersome, monstrous beast, the tax office will take their time but probably get around to it eventually.
As for Miro's tax dodging person ... denounce her Miro. We should all just denounce these horrid cheats. Take her photo. Post it on-line somewhere or just send it to the tax office. Let's get nasty!
As for Miro's tax dodging person ... denounce her Miro. We should all just denounce these horrid cheats. Take her photo. Post it on-line somewhere or just send it to the tax office. Let's get nasty!
Re: Tax Form 720 Asset declaration
Lavanda wrote: The tax office in Extremadura is not overworked. There 's less than a million people in the whole place and probably not even a quarter are tax payers.
Apparently of all the people who are employed in Extramadura & have full contracts, 75% work for council's or government !
Todos somos Lorca.
-
- Andalucia Guru
- Posts: 6199
- Joined: Thu Jul 29, 2004 1:42 pm
- Location: Cáceres Province, Extremadura
Re: Tax Form 720 Asset declaration
Sounds about right. Therefore, they have time to send out 720 letters in the middle of the tax cycle. Also, checking on-line between 720s and tax returns does not produce a whole room full of files and paper to show how hard they are working, checking and doing their job, does it? We like paper up here.
-
- Andalucia Guru
- Posts: 11081
- Joined: Tue Jun 15, 2004 11:11 pm
- Location: Guadalhorce Valley
Re: Tax Form 720 Asset declaration
Wasn't it in Extremadura where a group of schoolkids were encouraged to act out a simulated Spanish invasion and takeover of Gibraltar. It looks as though you may also be the victims of a xenophobic backlash.
Let's go Brandon!
-
- Andalucia Guru
- Posts: 6199
- Joined: Thu Jul 29, 2004 1:42 pm
- Location: Cáceres Province, Extremadura
Re: Tax Form 720 Asset declaration
Yes. It was very funny. School kids also do theatre things in Caceres Old Town relating to how wonderful the EU is for everyone!
-
- Andalucia Guru
- Posts: 11081
- Joined: Tue Jun 15, 2004 11:11 pm
- Location: Guadalhorce Valley
Re: Tax Form 720 Asset declaration
Obviously a lot of brainwashing going on there.
Let's go Brandon!
Re: Tax Form 720 Asset declaration
Presumably that isn't the case if you declare long term rental income from the property? I know of people who own a second home in the UK but don't need to rent it out so would these be the ones that have to pay the imputed income tax?El Cid wrote: Loads of people have declared their properties in the UK, unaware of the fact that imputed income tax is due on these properties as they are classified as holiday homes.
Sid
-
- Andalucia Guru
- Posts: 16073
- Joined: Sun Oct 24, 2004 10:42 pm
- Location: La Herradura, Costa Tropical, Granada
Re: Tax Form 720 Asset declaration
Yes, that's correct, but don't assume that those who are letting them out have necessarily been declaring the rental income in Spain.
They will have to pay UK income tax on the rental income, but because of this many Spanish tax residents seem to think they do not have to also declare it in Spain. They do have to declare it twice, but the UK tax can be offset against the Spanish tax.
However the problem here is that many people in that situation, don't actually pay any UK tax as their UK allowances mop up the rental income which means that they will have no tax to offset against the Spanish tax.
Sid
They will have to pay UK income tax on the rental income, but because of this many Spanish tax residents seem to think they do not have to also declare it in Spain. They do have to declare it twice, but the UK tax can be offset against the Spanish tax.
However the problem here is that many people in that situation, don't actually pay any UK tax as their UK allowances mop up the rental income which means that they will have no tax to offset against the Spanish tax.
Sid
Re: Tax Form 720 Asset declaration
It doesn't really help though when the professionals who advise people don't put have much of a clue. I've been advising someone about this who was told by the gestor that they couldn't claim the mortgage interest or professional fees if the property was abroad.
Re: Tax Form 720 Asset declaration
This is just to clarify Lavanda's tax letter as Mrs Gasman has just got one ... it is not referring to the Renta and normal income tax requirements but it is Andalucía trying it on as regards the "Wealth" tax. Our Gestor has tackled the relevant tax office directly for us and it seems, like in Lavanda's case, they have to do a selection of 720 form-fillers and in this case, ask them to prove that they do not have to pay Wealth Tax - Impuestos sobre "Patrimoniales" ... and apparently the calculation can be quite complicated, not a simple case of 700,000 euros, plus 300,000 allowed for main residence.
So Lavanda - is yours on the Renta, or is it on Patrimonial ie Wealth tax?
By the way it was written on 16 June and got to us on 1 July ... snail's pace post!
Cheers
So Lavanda - is yours on the Renta, or is it on Patrimonial ie Wealth tax?
By the way it was written on 16 June and got to us on 1 July ... snail's pace post!
Cheers
-
- Resident
- Posts: 275
- Joined: Sun Jan 26, 2014 4:17 pm
Re: Tax Form 720 Asset declaration
So, we lesser mortals, with modest savings, need not fear then?
Who is online
Users browsing this forum: No registered users and 32 guests