Spain Publishes 2018 Tax Compliance Plan
The Spanish tax authority has published its annual tax and customs control plan for 2018, which details the tax compliance and enforcement measures that it intends to undertake in the coming year.
The plan, published by the tax authority on January 23, features four key pillars: preventative measures, including a tax compliance information and assistance campaign; investigating high-risk taxpayers; controlling fraud in the collection process; and collaboration between the central and regional tax authorities.
The plan includes a section on tackling BEPS, and says “control actions” will be carried out this year to ensure compliance with transfer pricing rules. According to the plan, particular emphasis will be placed on high-value intangibles, intra-group services, corporate restructuring arrangements, and intra-group financing operations.
Efforts will be made to neutralize tax advantages gained from the use of hybrid instruments, which can result in double non-taxation or double deductions for the same income, and the abuse of tax treaties.
It says the tax agency will focus more on permanent establishment avoidance and transactions involving low-tax jurisdictions. It will also analyze evolving business models in the digital economy.