Form 720

This is an extract from a report by a company's which complained to the EU last year about the 720 requirements. ( http://consultingdms.blogspot.com.es/2014/01/modelo-720-2013-declaracion-bienes.html )

Its just for interest.

This is one of many infringements that Spain is culpable of in disregarding EU rules and legislation.

Spain joined the EU - took all the benefits that brings - and disregarded all the rules Spain didn't like.

Only the UK seems to comply with EU regulations these days.

I have always been a great supporter of the principal of a European Union, but now i would vote for the UK to pull out.

Rant over.

I have always been a great supporter of the principal of a European Union, but now i would vote for the UK to pull out.

In 1975 the British people voted in a referendum to decide whether UK should remain in the European Economic Community.

At no time has there been a vote on the kind of political, financial, human rights. Immigration controls, united states of Europe  etc., which the UK is now subject to

And that is why Cameron has said "if they win the next election, there will be a referendum, (2017 i think)

Nothing to do with getting re-elected of course !

Back to the theme, 720 Declaration.

I just submitted the info for this year’s (2013) return. Last day of course 31^st March.

I closed an account with Leeds BS (Gib) in March 2013, and transferred the sum to another Leeds (Gib) account. 

Apart from that,  the Return was just about the same as last year, except for the small change in the exchange rate this year against last year,

Closing an account is one of the requirements for a new Declaration.

(Glad to one of the estimated less than 5% who should have made the return and did !!!!  )

Johnx-was your accountant 's fee for  just submitting the change, a lot lower than the fee for last year, which was for a full submission? Quite honestly, I can understand having to declare that an account has increased by more than 20.000, but to have to declare closure of an account-why?

Last year the fee for the 720 was 85 euros each, for my wife and myself. (I prepared a draft with all the amounts so all the gestor did was type the info on the forms)   The joint tax resident tax return was 50 euros.

but to have to declare closure of an account-why?     Thats just  the way it is.

Surely you only had to submit details of the account closed, not other accounts submitted last year? If so, I would imagine it would be quite a lot less.

Surely you only had to submit details of the account closed, not other accounts submitted last year? If so, I would imagine it would be quite a lot less.

Perhaps you could give my Gestor a ring and tell her she is wrong !

Or maybe read the Regs which say a 'new declaration'  is required in various circumstances, one of which is closing an account.

I have now had it confirmed that only changes to last years 720 need to be reported, not to do the whole lot again.Phew!

QUOTE

"If you submitted Form 720 in 2013, you only need to report again if:

• The value of an existing asset grew by more than €20,000, or
• You sold an asset/closed an account, or
• You obtained a new asset."
•  

• Having completed the declaration form,  I can say,  there is no provision on the 720 to make a partial declaration"  Also,  from research on the internet, no where can I see that it says that only the variation needs to be reported.  All say,  a report/declaration must be made                                                                                                                                                                                       But as I said, everyone else, me, and my gestor may be wrong

Yes - a report that an asset has been closed etc. I have already spoken to someone with a different accountant, who said he has just reported the one change, with no problem. You may not see it actually pointed out, but why would you go through the whole darn rigmarole again?

but why would you go through the whole darn rigmarole again?

Yes you are right, I now give up.

Another thought:

Why shouldn't the 720 have to be filled in by ALL residents in Spain? It would be fairer.

If you have a fraction less then 50,000 euros in each category you still have substantial assets, but no one has to know. Anyway, why should those  over the threshold be the only ones to supply the taxman with a handy list of assets ready to calculate IHT, while those with less keep quiet and pay less?

Why not combine the 720 with  the annual tax return,  make it less detailed and complicated, with a section for assets, changes to existing assets etc? No need for IBAN nos etc, the taxman can change them up if he wants to. Make it just a simple list.Seems logical to me.

Less money for the accountants, suppose they'll up their fees!

Shouldn't the  present value of the house outside Spain  be entered as well as the aquisition price? It doesn't make sense to me, as someone who bought their house in 1980 for £30,000  probably now has a property valued at £200,000 plus, yet doesn't have to mention it. Spanish taxman missed a trick there!

Funny that, Jonzx, my husband is always saying I'm right, too!

Why shouldn't the 720 have to be filled in by ALL residents in Spain? It would be fairer.

What would be the point,  when less than 5% of those whom it is estimated should have made the declaration last year,  actually made it ?

Agreed, but it's time the Hacienda got tough on the evaders and flushed them out.

Foreigners  office should send details to  the Tax office automatically when someone signs on the foreigners register. Simple! That should get all the ex pat pensioner brigade, who can't get their free healthcare until they have signed on the register.

Isn't the tax office looking at electricity bills to establish if someone one lives in Spain fulltime?

I am disgusted at the audacity of those who make no secret of the fact that they do not, and don't intend to, pay taxes in Spain, and no way would they reveal their assets. Latest trend is to state they are non residents ,when you know for a fact they are resident in Spain.

I know the tax office doesn't have the funds or staff to pursue these people, but a purge now and then, with heavy fines till their pips squeaked should spread the message!

Foreigners (Registration) office(s) should send details to  the Tax office automatically when someone signs on the foreigners register. 

I believe they already do. A friend of mine’s non-res bank account was frozen by Hacienda when she registered on the EU Foreign Citizens Register.

So why aren't more evaders chased up.Perhaps an automatic  letter  from the tax office ,reminding them of their tax  liabilities, with the consequences of not paying explained would help, followed up with a reminder in May every year that a tax declaration is due!

No tax return made- bank account frozen,no free health care, or any  concession for being a tax paying resident;imagine the howls of protest when trying to book for a DR's appt!

So why aren't more evaders chased up?

You seem to miss the point.    The tax office know that less than 5% of those whom it is estimated should have made the assets declaration last year,  actually made it, and they appear to have chosen to do nothing about it.

End of story,  except for the 'What ifs'     'What maybes '    etc