If an individual does not submit the informative tax form or submits it late, or submits the form 720 with incomplete, inaccurate or incorrect details, they may incur a serious infraction.
The penalty will consist of a fine of €5,000 for each omitted, incomplete, inaccurate or incorrect detail or group of details. The minimum fine will be €10,000.
The penalty will consist of €100 for each detail or group of details submitted late, without having received a request from the Tax Office, or submitted by means other than the Internet. The minimum penalty will be €1,500.
The European Commission issued an Opinion on 5 February 2017 stating that this penalty system is disproportionate and called on Spain to urgently change the rule that regulates these penalties.
The Higher Court of Castile-León passed a ruling on 28 November 2018 stating that, according to domestic and international regulations, the principle of proportionality prevails and that it is disproportionate to consider the late submission of form 720 a very serious violation when in the case of other tax information returns (which large companies must submit) they are considered minor violations.
This ruling also states that there is a three-month expiry period for the Spanish Tax Office to initiate the sanctioning procedure once form 720 has been submitted.
TempleCambria has put forward this and other arguments in the appeals we have submitted for our clients to the Economic and Administrative Court, all of which we have won with a 100% success rate.
However, the rule remains in force and it is advisable to submit form 720 on time and ensure the information provided is accurate until the rule is reformed or there is well-established court jurisprudence on the matter.