# modelo 720 penalties



## stevec2x (Mar 24, 2012)

Hi

We failed to declare assets on the Modelo 720 before the March deadline (we hadn't realised that this deadline is different to that for income tax returns)

Now, if we complete our tax return and 720 at the same time , we could be fined 1500 euros for being late with the 720. Does anyone have any knowledge of these fines actually being applied? And if so, how have they been enforced?

1500 euros is a bit steep for being a few weeks late with a declaration that doesn't actually involve paying any tax anyway!

Cheers

Steve


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## extranjero (Nov 16, 2012)

stevec2x said:


> Hi
> 
> We failed to declare assets on the Modelo 720 before the March deadline (we hadn't realised that this deadline is different to that for income tax returns)
> 
> ...


It's better than being fined for non declaration which is many thousands more!
There 's so much publicity about this now, in expat press and other media, that it's hard to see how people aren't aware of the different deadlines.
Having said that, I don't see why the 720 can't be incorporated into the annual income tax declaration.
All it needs are a few more columns to fill in.
It could be made much more simple, no need for so much minute detail.
I don't know anyone personally who has been fined , only a poster on another forum who submitted his declaration late, pleaded ignorance and has thrown himself on the mercy of the Hacienda. Hope he updates us as to what ensued.I imagine it's an automatic fine.
I suspect that many who did not submit did not make a late declaration and took the risk of not being discovered


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## Rabbitcat (Aug 31, 2014)

stevec2x said:


> Hi
> 
> We failed to declare assets on the Modelo 720 before the March deadline (we hadn't realised that this deadline is different to that for income tax returns)
> 
> ...


Just to be clear what are the deadlines for each of the two?


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## extranjero (Nov 16, 2012)

March 31st for assets declaration 720
June 30 th for income tax declaration


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## The Skipper (Nov 26, 2014)

stevec2x said:


> Hi
> 
> We failed to declare assets on the Modelo 720 before the March deadline (we hadn't realised that this deadline is different to that for income tax returns)
> 
> ...


Our 720 was filed on time, so can´t answer that particular question, but in our first year in Spain we were very late with our first normal tax return (by nearly a year, actually!) and our accountant said the Tax Office would fine us.That was seven years ago and we haven´t been asked to pay a fine yet, so hopefully you will have the same luck as us.


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## mrypg9 (Apr 26, 2008)

As the 720 fines have been deemed unfair and disproportionate by Brussels I shouldn't worry too much.


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## baldilocks (Mar 7, 2010)

extranjero said:


> It's better than being fined for non declaration which is many thousands more!
> There 's so much publicity about this now, in expat press and other media, that it's hard to see how people aren't aware of the different deadlines.
> Having said that, I don't see why the 720 can't be incorporated into the annual income tax declaration.
> All it needs are a few more columns to fill in.
> ...


Not everyone has access to the expat press, nor particularly want it.


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## extranjero (Nov 16, 2012)

baldilocks said:


> Not everyone has access to the expat press, nor particularly want it.


There are plenty of other ways to find out, online, radio, seminars etc
It's in a person's own interests to find out what's going on, as ignorance is no excuse to the Hacienda.


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## stevelin (Apr 25, 2009)

Its confusing to I did a 720 2 years ago as things have not increased by more than 20000. Ive been toldby my Gestor do not need to declare again. Hope this was the right advise


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## extranjero (Nov 16, 2012)

That is right
Also if you have opened or closed an account you are supposed to do a 720 purely for that account(s) without having to resubmit all the others, though where changes are very slight, they may not need reporting. The accountant will sort that out.
What some haven't considered is, that due to the exchange rate, some accounts , investments etc. Which previously were under the 50 k threshold will, this year, be over it .


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## gus-lopez (Jan 4, 2010)

mrypg9 said:


> As the 720 fines have been deemed unfair and disproportionate by Brussels I shouldn't worry too much.


& additionally have now opened an investigation into the 720 declaration on the grounds being contrary to personal privacy, That the form is contrary to EU legislation,infringes a citizens rights + various others.
Spanish tax experts seem to be quietly confident that the 720 will be either watered down or declared contrary to EU law.


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## Rabbitcat (Aug 31, 2014)

extranjero said:


> That is right
> Also if you have opened or closed an account you are supposed to do a 720 purely for that account(s) without having to resubmit all the others, though where changes are very slight, they may not need reporting. The accountant will sort that out.
> What some haven't considered is, that due to the exchange rate, some accounts , investments etc. Which previously were under the 50 k threshold will, this year, be over it .



So if you had €100k, and split it into 3 savings accounts- they wouldn't have to be declared?


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## Lynn R (Feb 21, 2014)

Rabbitcat said:


> So if you had €100k, and split it into 3 savings accounts- they wouldn't have to be declared?


Yes, they would - it is the amount you have in any one asset class (€50,000 or more) which needs to be declared. That means €50,000 whether it's in one account, or ten different ones.


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## Rabbitcat (Aug 31, 2014)

Bah, sort of thought that- but was worth a try!!!!


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## Alcalaina (Aug 6, 2010)

stevec2x said:


> Hi
> 
> We failed to declare assets on the Modelo 720 before the March deadline (we hadn't realised that this deadline is different to that for income tax returns)
> 
> ...


I would go to the tax office and say you didn't realise the deadline had passed. It's very unlikely they will fine you - it's the people trying to _hide_ their assets they are after!


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