Improvements and New Tools in Tax Authorities Hands to Combat Tax Fraud

15 November 2007

The past few months have seen the passing of Royal Decree 1065/2007, dated July 27, which approved the general regulations for tax management and inspection procedures as well as the signing of the Agreement between the Tax Authorities (AEAT) and the General Counsel of Notary Officials.

One of the changes in the new regulations, which will go into effect on January 1, 2008, is the introduction of a single taxpayer census for all tax administration authorities. The different tax administration authorities in Spain are autonomous as regards creating and managing their own tax censuses. This change in the regulations will establish a minimum content for the existing censuses. The aim is to be able to exchange and share data between the various administrations and, in this way, allow the tax authorities to track taxpayer acts with fiscal implications.

Said Agreement was signed to that end. The General Counsel of Notary Officials will create a new Computerized Single Index with relevant fiscal data from all of the signed and authorized notary documents. AEAT will be allowed access to this index database in order to carry out consultations on the latest relevant fiscal information. Furthermore, the notary officials will inform the tax authorities of all real estate information that appears in the notary documents as well as data regarding the granting of powers, appointments, and the resignations of company directors, amongst other measures.

For further information, please contact Javier Valls: