The deadline for filing Form 720 for the 2021 tax year is 31 March 2022.
It is important to note that the filing of the information return on certain assets and rights located abroad (as Form 720 is formally known) is still in force despite the ruling of the European Court of Justice (ECJ) of 27 January 2022 in case C-788/19.
It should be recalled that the aforementioned ruling of the ECJ only declared contrary to EU law the system of penalties consisting of the 150% fine, the fixed fines per item of data or set of data and the non-applicability of statutes of limitation to unjustified capital gains.
The three declaration blocks comprising bank account balances, real estate and securities, rights, insurance, income deposited, managed or obtained abroad can be declared through the AEAT’s E-Office without any inconvenience.
Unfortunately, as regards the fourth block of assets, virtual currencies, we are still awaiting the regulatory provisions and the appropriate changes to Form 720 to be able to declare them. About these assets, it is important to note that the obligation to declare falls on the person who is the owner or beneficiary or authorised or has the power of disposal over them. Similarly, there is an obligation to declare these crypto assets by those persons or entities providing services to safeguard private cryptographic keys on behalf of third parties, to hold, store and transfer them.
Ventura Garcés offers our tax and asset advisory services to prepare and file the Form 720 for the 2021 tax year, as well as to complete and file returns for the aforementioned form for previous tax years for which the statute of limitations has not expired.