[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-302532-105":53,"doc-detail-302532-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","cuatrecasas-legal-flash-update-january-282022","CUATRECASAS - Legal flash update - January 28,2022","","CUATRECASAS issues a legal flash update on a CJEU judgment of January 27, 2022 (Case C-788/19) addressing Spain’s tax form 720 rules. The court holds that Spanish legislation regulating reporting of overseas assets and rights is contrary to EU law because the measures restrict the free movement of capital. Key concerns include disproportionate restrictions on legal certainty and severe penalties: a 150% fine and flat-rate penalties, plus a limitation-period effect effectively extending regularization indefinitely.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":41,"@type":70,"position":76},"https://docshare.wps.com/template/letters/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/cuatrecasas-legal-flash-update-january-282022/302532/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/cuatrecasas-legal-flash-update-january-282022/302532.png","ImageObject",442,249,{"name":88,"@type":89},"Aria","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-26","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":73},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What did the CJEU decide regarding Spanish tax form 720?","Question",{"text":108,"@type":109},"The CJEU concluded that Spanish legislation regulating tax form 720 is contrary to EU law due to disproportionate restrictions on the free movement of capital.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"Why does the judgment consider the Spanish rules disproportionate?",{"text":113,"@type":109},"The court found that the system undermines legal certainty, including an effective indefinite extension of the regularization period and a highly punitive penalty structure.",{"name":115,"@type":106,"acceptedAnswer":116},"Is the obligation to submit tax form 720 still in force?",{"text":117,"@type":109},"Yes. The obligation to provide information on assets and rights located abroad was not declared contrary to EU law, so it remains fully in force.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},302532,1790409185,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":40,"category_name":41,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":73,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":47,"language":135,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":136,"faqs":137,"seo_title":138,"seo_description":61,"update_tm":139,"read_time":73},2336464648322,"https://ap-avatar.wpscdn.com/avatar/2200025388227c56fec?_k=1778556882303663488","# CUATRECASAS\n\nSpanish legislation regulating tax form720 iscontrary to EU law  \nThe Court of Justice of the European Union(CJEU)has issued ajudgment on theobligation to report overseas assets and rights(tax form 720)  \n# Legal flash update\n\nJanuary 28,2022  \n# Key aspects\n\nThe CJEU judgment of January 27,2022,(Case C-788/19)concludes that Spanishlegislation regulating tax form 720 iscontrary to EU law.  \nSpecifically,it finds that restrictions on thefree movement of capital are  \ndisproportionate with regard to the threeissues raised in the proceedings:  \n>No possibility of benefiting fromlimitation.  \n>The fine of 150%linked to the taxresulting from unjustified capital gainsimposed on taxpayers that fail tocomply with reporting obligations.>The flat-rate fines imposed for failure tosubmit tax form 720,for submitting itlate,and for providing incorrectinformation.  \nThe judgment has significant materialimplications that need to be analyzed on acase-by-case basis.  \n# Issues arising from tax form 720\n\nIn 2012,the Spanish lawmaker approved extraordinary measures adjusting the taxes paid onincome and wealth mainly located abroad,commonly known as \"tax amnesty.\"Thisprocedure was based on two basic elements:  \n>The payment of the corresponding tax amounts through ordinary declarations orthrough the special tax declaration provided under Royal Decree-Law 12/2012.>A new reporting obligation on assets held abroad (through taxform 720),linked to aspecific tax regime if taxpayers did not adequately fulfilltheir obligations to provide thisinformation:(i)assessment of the tax due on the amounts corresponding to value of theundeclared assets and rights,including where they were acquired during a period that istime-barred,(ii)a material fine of 150%of the tax calculated on the above amounts,andii)a formal and flat-rate fine applicable to each missing or incorrect data item or set.  \nIt appeared that the Spanish lawmaker's ultimate aim was to open up a new stage fortaxpayers,also linked to the progress achieved in the internationalexchange of taxinformation.However,these new obligations to provide information,which did not apply toassets held in Spain,were so strict and imposed fines so high that they could be considereddisproportionate.  \nThis was the view of the European Commission,which denounced the Kingdom of Spain forimposing a reporting obligation with such a severe penalty system that it deterred Spanishtaxpayers from making crossborder investments,resulting in a restriction on the freemovement of capital regulated under article 63 of the Treaty on the Functioning of theEuropean Union (TFEU).In view of the legislative inaction,the Commission broughtinfringement proceedings before the CJEU,which has now ruled on the case.  \n## CJEU criteria\n\nIn its judgment ofJanuary 27,2022,the CJEU confirms that this legal system gives rise to adifference of treatment between Spanish residents according to the location of their assets,which could deter Spanish taxpayers from investing in other Member States,constituting arestriction on the free movement of capital.  \nThe Court considers that this restriction is,in principle,justified by a reason of public interestcentered on the need to guarantee the effectiveness of fiscal supervision and to prevent taxevasion and avoidance.However,the key issue in the proceedings was that to justify therestriction,it must also be proportionate and not go beyond what is necessary to attain theobjective pursued.This is where the CJEU concludes that Spanish legislation introduces adisproportionate restriction on the free movement of capital that undermines therequirement of legal certainty.  \nThus,with regard to the specific issues raised in this case,the CJEU diverges from the opinionof Advocate General Saugmandsgaard in his conclusions of July 15,2021(discussed in ourLegal Flash of July 16,2021)and considers that Spanish legislation goes beyond what isnecessary to achieve the objectives pursued in the following res","cbCais8zbZuHYBOM","https://ap.wps.com/l/cbCais8zbZuHYBOM","pdf",950178,"English","# CUATRECASAS\n## Legal flash update\n## Key aspects\n## Issues arising from tax form 720\n## CJEU criteria\n## Practical implications","[{\"question\":\"What did the CJEU decide regarding Spanish tax form 720?\",\"answer\":\"The CJEU concluded that Spanish legislation regulating tax form 720 is contrary to EU law due to disproportionate restrictions on the free movement of capital.\"},{\"question\":\"Why does the judgment consider the Spanish rules disproportionate?\",\"answer\":\"The court found that the system undermines legal certainty, including an effective indefinite extension of the regularization period and a highly punitive penalty structure.\"},{\"question\":\"Is the obligation to submit tax form 720 still in force?\",\"answer\":\"Yes. The obligation to provide information on assets and rights located abroad was not declared contrary to EU law, so it remains fully in force.\"}]","CUATRECASAS - Legal flash update - January 28,2022 | PDF",1789793957]