Individuals and companies have the obligation to submit an informative tax form (720) regarding the following groups of rights and assets:
Bank accounts of which individuals or companies are the holder, representative, authorised party, beneficiary, or over which they disposal rights, opened in a financial institution abroad when the overall balance at 31st December or the average overall balance at last quarter exceed €50,000. When the bank account has been closed, or the authorisation or power of disposal over the bank account has been cancelled or revoked during the year, this bank account must be declared.
Representative shares or rights of capital of any kind of corporate institution, the transfer of own capital to third parties, securities dealt with or managed by trusts, participation in Undertakings for collective investment in transferable securities (UCITS), disability and life insurance, annuity or temporal incomes from fund, pension, when jointly the overall value is over €50,000. If a security, share, right or insurance has been cancelled or transmitted during the year, it must be declared.
Real estate and rights on real estate when jointly the overall value of properties and rights on real estate exceeds €50,000. If a real estate or right has been transferred during the year it must be declared along with the price of transfer.
Likewise, once you have submitted the form in a previous year, you only have to submit it again whether the assets value or balance (in case of bank accounts) has changed for more than 20.000€, and when some asset has been transferred, sold or cancelled, within the previous year. It is advisable to consider the exchange rate at 31st Dec.
INFRACTIONS AND PENALTIES
If an individual does not submit the informative tax form or submits it late, or submits the tax return 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.
However, this penalty system is disproportionate.
DEADLINE
This obligation to provide information must be fulfilled between 1st January and 31st March of the year following the year to which the information in question refers, entering into effect for the first time in 2012 (i.e. the informative tax form regarding a year must be filed before 31st March of the following one).
INFORMATION TO BE PROVIDED
1ST GROUP:
• Type of account : saving, current, fixed term bond, credit account or other kind of accounts.
• Opening date.
• Type of right: holder, representative, authorized or other kind of right.
• NUMBER ACCOUNT IDENTIFICATION: SWIFT/BIC code and IBAN code
• Bank identification name
• Bank address
• Bank tax identification number
• Balance at 31st Dec
• Average balance at the last quarter
• Percentage of ownership, right held.
2nd GROUP:
• TYPE OF INVESTMENT: securities, shares (if there is annotation in account or not) life insurance, annuity, UCITS.
• Type of right: holder, representative, authorized or other kind of right.
• IDENTIFICATION NUMBER (ISIN CODE (INTERNATIONAL SECURITIES IDENTIFICATION NUMBER)
• Company identification name
• Company address
• Company tax identification number
• Acquisition date
• Value at 31st Dec (in case of annuity, capitalization value) in order to calculate the capitalization value it would be needed the acquisition date, annuity (yearly), and date of birth)
• Percentage of ownership, right held
• Number/amount of securities, shares held
• Whether the shares, equities, are represented by note entries in a book (data base).
3rd GROUP:
• TYPE OF RIGHT
• ADDRESS
• ACQUISITION VALUE (price plus expenses, ie, state agency, solicitor, notary, stamp duty)
• ACQUISITION DATE
• TYPE OF PROPERTY: URBAN OR RUSTIC
• PERCENTAGE OF OWNERSHIP OR RIGHT