# EU declares the modulo 720 declaration illegal!



## Chopera (Apr 22, 2013)

Bruselas ve ilegal que Espa?a obligue a declarar los bienes en el extranjero - Expansi?n.com

Bruselas considera ilegal la declaraci?n de bienes en el exterior - ABC.es

I think it has emerged due to the "Rato case" that is passing through the courts at the moment (they're using his 720 declaration as evidence) but the implications could be far wider reaching.

In particular they are criticising the sanctions for non-declaration.


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## Alcalaina (Aug 6, 2010)

As I read it, they aren't saying the Modelo 720 itself is illegal, just that the sanctions are too high?


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## Chopera (Apr 22, 2013)

Alcalaina said:


> As I read it, they aren't saying the Modelo 720 itself is illegal, just that the sanctions are too high?


The sanctions were key to the modulo 720, if the EU decides that hacienda can't fine people for not declaring assets then it becomes pointless. Even if the fines are small, it won't deter the fraudsters.

They also mention that there's no need for people to declare assets in other EU countries because hacienda has access to that data anyway. By 2017 bank data will be freely available across the EU and other countries as well.

It's beginning to sound like another PP screw-up. They should have made the 720 declaration apply for assets held outside the EU only. It's the accounts in Andorra, Switzerland, etc they're after.


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## Pazcat (Mar 24, 2010)

But you do have to declare assets in other countries and unlike in Spain you have to declare everything, EU assets or not and even accounts with zero in it or face severe penalties. 
It just seems Spains penalties are rather more severe.


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## Chopera (Apr 22, 2013)

Pazcat said:


> But you do have to declare assets in other countries and unlike in Spain you have to declare everything, EU assets or not and even accounts with zero in it or face severe penalties.
> It just seems Spains penalties are rather more severe.


My point is really they should have differentiated between assets held within the EU and those held in tax havens, famous for opaque banking. They could still have the requirement for declaring assets within the EU, but keep it separate from the 720 with its heavy fines. It was commented at the time that the EU might take exception to this, and they have the power to overrule hacienda and make the 720 declaration null and void. So as well as antagonising quite a few expats, they now might not be able to use the 720 as evidence against those who have been hiding money, which was the original intention.


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