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Issue 700
Celebrating our 700th edition! NORTH EDITION roundtownnews.com
15 - 21 MARCH 2013
Outrage at asset ‘inquisition’ FURIOUS EXPATS are mounting a rearguard action at the new law requiring the declaration of offshore assets describing the directive as the new Spanish Inquisition. by Jack Troughton HARSH PENALTIES await anyone failing to declare overseas holdings worth more than 50,000€ to the tax authorities – but even those who attempt to comply with the law by the deadline of 30th April could be hit with fines for unintentional errors in a complex reporting system. Fears are growing that the Hacienda is looking to milk a new ‘cash cow’ and Madrid is paving the way to increase taxes. After the problems of the notorious ‘land grab’ laws, the change has already been branded a ‘money grab’. A petition to the European Parliament is being prepared by groups questioning whether Spain’s new law – passed last November by Royal Decree – is in breach of the EU Charter of Fundamental Human Rights and the European Savings Directive by the possibility of paying additional taxes on income already taxed at source. And it is thought likely the Spanish law could face a court challenge for breaching bilateral treaties to avoid double taxation. As the protests mount expats of all nationalities
on the Costa Blanca affected by the new law are being urged to lobby their own governments, MPs and MEPs – as well as consuls and ambassadors. The British Ambassador Giles Paxman, known for his keen interest in the British community in Spain, will be asked to intervene using diplomatic channels – especially as the UK currently chairs the G8 economic grouping. British citizens are considered to be tax residents of Spain if they spend more than 183 days a year here. It is estimated more than 800,000 Brits live all or part of the year here – up to 400,000 could be considered residents. PENALTY The minimum penalty for failing to declare an asset is 10,000€ as well as income tax on undeclared income, late-payment interest and penalties of up to 150% of the total tax due on the asset. Further, unpaid tax of more than 120,000€ from an undeclared overseas asset could be considered a criminal offence as tax fraud. Continued on page 6
Front runner
YOUNG EVIE Marie Chapman is supporting charity at an early age when she took part in the MABS Race for Life on Sunday raising a splendid 102€ and earning the thanks of the charity. With a fortifying cereal bar in hand, the four-year-old proudly shows her race card and number 48 before the start at Moraira’s Sol Park. To read the main story turn to 15