30 January 2012:To qualify, I am an british expat who has lived and worked in Spain since 2002 although looking for full time work since 2008. I come from Spanish parent and speak Spanish and try to integrate into the society here as much as possible. I love Spain and its people. I want to be part of the solution.
Its just an observation really which others may perhaps like to comment on whether they agree or disagree?
One only needs to look no further than this forum to find the many many examples of persons who have invested money in property in Spain and are going through or have gone through a process or reclamation for various reasons. i think it is generally understood particularly for any person who is living in Spain that the country is currently undergoing very serious difficulties particularly economically and financially. Which in a roundabout way brings me to the subject of taxes and the Tax Office. It seems to me that it has been convenient and incredible to 'ignore' the blatantly obvious practices that have been occuring in Spain probably for decades.
Is it possible that no one in the vast organisation that is the National Tax Office has no knowledge whatsover that for years:
a) Spanish property has been bought and sold using black money whereby no tax has been paid?
b) Spanish propery has been bought and has/is being rented out and no declaration and appropriate payment of income tax has been paid?
c) Non Resident taxpayers have been/are ignoring not only to pay any Imputed Income Tax but may also be receiving rental income and failing to declare and pay any appropriate physical Income Tax?
d) Resident and National taxpayers renting Spanish property and not making the appropriate declaration and payment of Income Tax?
e) The practice for Spanish businesses to form 'bogus' multiple companies and issue shares and move funds around, including to divert monies to fiscal havens and to make as difficult as possible any fiscal investigation?
f) Who amongst us who have had any financial transaction in Spain can say that they have not at all participated in the propagation of this black economy in some way, including employees at all levels, especially upper levels of Tax Office?
Probably one can say now that especially in these very serious financial predicament that the country is in, the funds dont exist to pursue these large companies who have/are defrauding the country of greatly needed tax revenue due to their ability to pay expensive Lawyers to tie up the system/process in the courts. I think the Tax Office should be and should have been much more proacive in its pursuit of fradsters and evaders than it has been. Whetther the funds exist now to do something about turning this situation around I suspect not. Perhaps they could pay for a study to try to work out what would be the cost to do so against the potential benefits gained.
Taxes are the lifeblood of the economy. As much people as possible need to be in employment and payijng taxes for the country to be financially healthy (in theory). Perhaps when the going was 'good' and unemployment levels were low, it has been convenient for everybody to turn a blind eye to such practices of tax evasion. Now of course the situation is very different and both the new Government and Treasury surely need to address this matter -create employment, make appropriate and meaningful changes to the tax system, investigate fraud and non payment of tax.
As I mentioned, its just an observation (albeit long one) and perhaps a sad indictment of a society in which we all have played a part?
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