Augusto Berutich, Head of Tax in Auxadi, presented, on Wednesday, November 14th , 2018, the webinar “Form 232 – Report both transactions with related parties and with tax haven territories or alike countries”, which aims to encourage control and transparency of organizations with respect to their operations and transactions, especially for multinational organizations.

Form 232 is an informative statement of (i) related parties and (ii) situations related to countries or territories qualified as tax havens, issued by the Finance Ministry, through order HFP / 816/2017, last August 30, 2017, and that must be submitted by legal entities incorporated in Spain and/or Non-Resident entities with a permanent establishment (PE) in Spain (ie: Branches, etc).

Augusto talked about each of the persons or related parties affected by the submission of this form, and related operations that must be included, differentiating the amount, type and requirements of each operation. He also remarked the types of operations to be declared that, according to Form 232, are framed in acquisition, transmission, assignment of tangible and intangible assets, financial operations, among others.

Form 232 must be submitted in the following month to ten months after the end of the tax period to which the information refers. In this regard, for the tax periods ending on December 31, 2017, the deadline for submission will be until November 30, 2018.

Failure to timely and accurately comply with this tax filing obligation, might entail severe penalties up to 2% of the missing data (ie: revenue, accrued interests during the year, etc.) or wrong information provided.