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V0865-24 ·23 April 2024 ·consulta-vinculante Medium impact
Tax

Tax advantages will only be disregarded if the primary objective is proven to be fraud or tax evasion

A query was raised regarding whether, in the absence of valid economic reasons for a corporate restructuring, only the effects of the sought tax advantage should be eliminated. The Directorate General for Taxes (DGT) ruled that the Administration may only regularise the sought tax advantage following a global assessment proving that the primary objective of the transaction is fraud or tax evasion.

In 6 key points

How it affects those involved

This ruling provides legal certainty for corporate restructurings by establishing that a lack of economic substance alone is insufficient to disqualify tax benefits; instead, a specific intent to commit fraud or evasion must be proven.

Lifecycle

2024-04-23PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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