The entity will apply three types of actions to prevent fraud. Exchanges in Spain must report on balances and transactions of their users.
The State Tax Administration Agency of Spain published this February 1 the Annual Plan for Tax and Customs Control’s general guidelines. These guidelines’ goals are to minimize tax evasion, including actions for cryptocurrencies such as bitcoin (BTC).
The entity dependent on the Ministry of Finance will apply three types of actions to prevent potential fraud regarding cryptocurrencies. According to the document, the rise of virtual asset markets generates “fiscal risks” requiring particular efforts to grant access to delicate information.
The agency established that it might request information from various sources, including bitcoin exchanges with roots in Spain. The agency is taking these steps for users to voluntarily declare and pay taxes that hold a close relationship to operations with cryptocurrencies.
The agency claimed through the document about obtaining information from various sources about operations regarding cryptocurrencies. There are expectations for incorporating this plan into the model of goods and rights abroad; also, establishing an autonomous information obligation on cryptocurrencies.
The agency’s second action will be the application of a “systematization and analysis of the information obtained.” The purpose is to facilitate the control of the operations’ taxation and the origin of the funds used to acquire cryptocurrencies.
A third guideline promotes international cooperation and participation in forums to obtain information on operations with cryptocurrencies and other virtual assets. The agency clarified once more that cryptocurrencies, as a means of payment, represent a challenge and that their growth would reduce cash.
Bitcoin and other Cryptocurrencies Need more Control
To find out the implications of the agency’s plan, José Antonio Bravo, a Spanish economist who specialized in the tax and accounting area, indicated that the program is a breakdown of the actions that the agency plans to carry out to comply with its Strategic Plan in the 2020-2023 period. The plan’s design aims to take control over tax fraud, not only with cryptocurrencies but also in general.
The Government of Spain had approved a bill that would require the report of all operations with bitcoin. The so-called “Law of prevention measures to combat tax avoidance” would seek a “greater control of cryptocurrencies.”One of the provisions for those who do not declare their cryptocurrencies outside of Spain would be sanctions of at least 10,000 euros.
The agency plan appears to be a formalization of actions that occurred in the past. In 2021, the agency shows its desire to make it clear that there will be more attention on the payment of taxes among those who operate with bitcoin and other essential cryptocurrencies.
By: Jenson Nuñez
