Spain Modifies Tax Model 720, Used to Declare Cryptocurrency Holdings Abroad – Regulation Bitcoin News

Spanish lawmakers have introduced an amendment in the tax model, 720 that allows cryptocurrency holdings to be declared abroad. This will reduce some penalties. While the amendment hasn’t been yet approved, it modifies some of the more severe penalties declared illegal last month by the Court of Justice of the European Union.

New Model 720 in Parliament

Spanish lawmakers introduced amendments to tax model 720 which required that taxpayers disclose cryptocurrency and other asset holdings beyond the country. This model is required by the antifraud law, which was passed last June.

Proposed amendment eliminates penalties that had been included in the original model 720 and were declared unlawful by the Court of Justice of the European Union. Depending on the situation, debtors were allowed to pay as much as 150% of the amount they have abroad under the previous structure. Taxpayers were also required to pay penalties of up to $5,000 ($5,675) if they provided incorrect or false data for the digital currency tax statement. This was because the tax debts did not become prescribed. Therefore, debtors will still have to pay their accumulated debt after many years.

The New Definition

This is the list of items that were fixed in the model 720 amendment. Tax debts have been made mandatory in the new model 720. They will now be prescribed within four years. That means taxpayers will no longer be responsible for tax debts incurred during the four previous tax periods. One of the most significant changes is the modification in the penalties that will apply to taxpayers. The new penalties, which are based on the existing General Tax Law, range from 150 to 250 Euros.

Also, the established 150% penalties disappear, something that the Court of Justice of the European Union had described as giving the model 720 an “extremely repressive character.” However, some things are maintained. It is the responsibility of taxpayers to declare cryptocurrency holdings abroad. Citizens that conceal these assets in foreign countries will face fines.

This “soft” model 720 will be used for declaring these taxes before March, when the period for presenting tax statements closes. This model will be used to declare these taxes before March 31, when the period for presenting tax statements closes. It’s not clear if this model will continue or whether a new one will be created for next year.

How do you feel about the tax model 720? What are your opinions on its relaxed penalties? Leave a comment below.

Sergio Goschenko

Sergio, a Venezuela-based cryptocurrency journalist. His entry into the cryptocurrency world in December 2017 was when it saw a price surge, and he describes himself as being late to this game. His background is in computer engineering, but he also lives in Venezuela and was impacted at the social level by the crypto boom. He offers an alternative perspective on the success of cryptocurrency and the benefits it has for the underbanked.

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