#EmbraceSpain IX: Ethical tax to achieve true equality.
Spain and the United Kingdom attract foreign capital, whilst establishing measures to avoid tax fraud within and outside its borders, protecting its taxpayers.
Both Spain and the United Kingdom’s economies are growing, despite the economic crisis and Brexit. There are many differences between the two economies, but we can find common ground, especially over the past week, in the growth of the real estate market in both countries.
In the UK, house prices have increased in the month of November and the market is expected to go even further. The sector is likely to continue to rise in the medium term because the UK government has secured investments of between £2bn and £3bn in real estate infrastructure, according to last week’s Autumn Statement.
And in Spain, foreign investment funds are investing large sums in this sector, especially in land and residential developments.
Investments are propelling the two economies, especially those made by Chinese investors in the case of the United Kingdom, although both countries are also making great efforts around fiscal restructuring to attract capital and unravel the complexity of their economic and tax systems.
The Spanish Treasury has already announced that it will monitor the 30,000 taxpayers who took advantage of the famous “tax amnesty” and stressed that it could lower corporation tax on large companies. From London, Prime Minister Theresa May suggested the possibility of further lowering the tax. In addition, the British government will shut down the placement agencies that were involved in tax evasion scandals.
This fight against fraud continues at an international level, an objective that, in this case, constitutes yet another episode of the struggle for fiscal ethics. Thus, the European Union could force tax advisors to report on their clients’ optimization processes.
Countries like the UK and France are also taking legal action against multinationals and other companies for tax offenses; the latter of which our Managing Partner, Leon Fernando del Canto, has published an analysis in the blog “Tax Precision”.
In addition, Fernando Del Canto has also been interviewed in the “They (Ellas) can” a programme which aired on Radio Nacional de España (RNE), by journalist Marta Pastor, in the framework of the UN campaign for equality #HeforShe.
Mothers will now have an opportunity to claim from the Treasury the personal income tax they paid to receive maternity benefits, as the High Court of Justice of the Community of Madrid (TSJM) issued a decision forcing the tax authorities to refund one taxpayer 3,135 Euros that she paid after receiving 11,679 Euros of said benefit.
It is estimated that about one million women could benefit, even though the Tax Agency rejects these refunds and maintains that the ruling does not create jurisprudence.
Regarding this relevant judgement, our Managing Partner, Leon Fernando Del Canto, published an opinion piece in the Huffington Post, where he stated the negative effects of the birth and equality policies of this ruling.
That is why, with the help of our partners in the Communication and Gender Agency, we have developed the platform reclamacionmaternidadirpf.com (@reclamacionirpf) with the intention of acting against this decision made by the tax authorities, where we explain how one can go about taking the legal steps to make a complaint.
In short, in the last seven days we have found that the pursuit of fiscal ethics and gender equality are two struggles that come together for the goal of achieving real equality in a just society.
An egalitarian society that follows a constructive process and to which we want to contribute our efforts, however small, via our blog and social media platforms like Twitter and LinkedIn, together with all those who follow us.
Xavier Nova (@xavinova)
Director of Del Canto Chambers