28/02/2023

Melissa Sullivan speaks to the TGS legal interest group

Europe Tax

Melissa Sullivan at TGS Edisa Spain speaks to the TGS legal interest group 

A ruling by the Court of Justice of the European Union (CJEU) could allow tax payers to claim tax paid to the Spanish Tax Authorities over the past few years because of breaches by Spain of EU Law.

The CJEU ruled that Spanish Laws defining the requirements to file a claim were infringing EU Law because, simply put, Spain was making it too difficult for claimants to file their claim.

 

Melissa explains by way of an example:

“Mr. Smith (a UK resident) paid 135.771,56€ inheritance tax in Spain because in 2014 he inherited his late father’s holiday home situated in Alicante.

In reality, he should only have paid 27.878,13 € if the regional tax benefits had been correctly applied. He could now file a claim to try to obtain the difference between the amounts paid 135.771,56€ and the amount he should have paid 27.878,13 € .

In other words, a claim for 107.893,43 € (plus interest).”

 

In summary, the recent case Law of the CJEU, would interest any tax payer who has:

  1. paid a sanction related to the Tax form 720 (declaration of goods overseas)
  2. paid Inheritance Tax in Spain and did not apply Regional Tax Benefits

 

The ruling is particularly interesting because, in certain circumstances at least, the previous time limit is no longer applicable.

Currently, Spanish national law establishing the requirements to file a claim is still being enforced – but it is not applicable – so tax lawyers (and their clients) are eagerly awaiting the results of case law for clarity. Until this happens, nothing is guaranteed.

 

TGS Edisa is recommending people who think they have a claim to get in touch to determine, depending on their situation, whether  it would be interesting to file a claim.

 

Tax, labour, commercial and accounting consultancy services

TGS Edisa, Spain

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