Legal advice and representation in tax audits, assessments, penalties and proceedings before the Spanish Tax Authorities, voluntary tax regularisation and international taxation.
At EBAN Abogados, we provide legal advice on Spanish Tax Law, particularly where a dispute with the Tax Authorities has arisen, a tax position needs to be reviewed or it is necessary to determine how an existing tax obligation should properly be addressed.
We are not an accounting or tax return preparation firm providing routine tax filing services, nor do we approach tax advice with the objective of producing a predetermined result on a tax return.
Our approach is different: we establish the relevant facts, apply the tax rules and determine the tax position that can properly be supported under the law.
Tax Law
Our Approach to Tax Advice
Tax advice should not begin by asking how much a taxpayer wants to pay or what result they would like to obtain from a tax return.
The legally relevant questions are different: what actually happened, how those facts should be treated for tax purposes and what must properly be reported under the applicable law.
Our advice is based on tax compliance and the protection of the taxpayer’s rights within the law.
This does not mean automatically accepting the position taken by the Tax Authorities. Where we consider that a tax assessment, penalty or administrative interpretation is incorrect, we challenge it and, where sufficient legal grounds exist, pursue the appropriate appeal.
At the same time, we do not design artificial arrangements or aggressive tax positions whose principal purpose is to produce a tax outcome disconnected from the economic reality of the transaction.
The objective is not to declare more. Nor is it to declare less. It is to report and pay what properly corresponds under the law.
Proceedings Before the Spanish Tax Authorities
A significant part of our tax practice begins when a taxpayer receives a communication from the Spanish Tax Authorities.
A request for information, proposed tax assessment, commencement of a verification procedure or penalty proceeding should be examined before a response is submitted.
We provide legal assistance throughout the proceedings, preparing submissions, providing supporting documentation and assessing the legal and financial consequences of the available alternatives.
The appropriate strategy depends on the circumstances. In some cases, the position adopted by the Tax Authorities should be challenged. In others, the legally appropriate course will be to correct or regularise the taxpayer’s position.
Tax Audits and Assessments
The Spanish Tax Authorities have various procedures through which they can verify taxpayers’ returns, transactions and tax obligations.
When a verification or audit procedure begins, we examine both the underlying facts and documentation and the legal interpretation being applied by the Administration.
A proposed tax assessment should not automatically be accepted merely because it has been issued by the Tax Authorities. Nor should it automatically be challenged simply because the result is unfavourable.
Our role is to determine whether the proposed tax adjustment is legally correct and whether there are sound grounds on which to challenge it.
Where such grounds exist, we defend them. Where they do not, we explain the position to the client and consider the appropriate way to resolve the matter.
Tax Penalties
A tax adjustment does not necessarily mean that a penalty should automatically be imposed.
In tax penalty proceedings, we separately examine the taxpayer’s conduct, the reasoning given by the Administration, the requirement of culpability, proportionality and the procedural safeguards applicable to the exercise of sanctioning powers.
Where there are sufficient legal grounds, we submit arguments and pursue appeals against tax penalties imposed by the Spanish Tax Authorities.
The defence should be based on the actual circumstances of the case and sustainable legal arguments, rather than simply seeking to delay compliance with a tax obligation.
Tax Appeals and Disputes
Tax assessments, penalties and other decisions of the Tax Authorities may be challenged through the procedures established under Spanish law.
We provide assistance with administrative reconsideration procedures, economic-administrative claims and subsequent judicial proceedings before the Spanish Administrative Courts where there are sufficient grounds to challenge the Administration’s decision.
Before pursuing an appeal, we examine the administrative file, the available evidence, the legal arguments and the financial consequences of continuing the proceedings.
An appeal makes sense when there is a legal position worth defending. Litigation is a legal instrument, not an objective in itself.
Voluntary Tax Regularisation
Not every tax problem begins with an investigation or communication from the Tax Authorities.
Sometimes taxpayers themselves discover that a transaction, item of income, asset or tax obligation was not previously reported or treated correctly.
In these circumstances, we assess what occurred, identify the relevant obligations and consider the available options for voluntarily regularising the tax position in the legally appropriate manner.
Taking action before the Tax Authorities commence a verification procedure may have different legal and financial consequences from attempting to correct the position after administrative proceedings have already begun.
Where a taxpayer is aware of an irregularity, indefinitely postponing its analysis is rarely an appropriate strategy.
Information Available to the Tax Authorities
Modern tax advice must take account of the substantial amount of information that tax authorities receive from third parties.
Financial institutions, companies, employers, public registers, other government bodies and domestic and international information-exchange mechanisms provide data that may subsequently be used in tax verification and investigation procedures.
Our advice starts from a practical premise: we work on the basis of the information that we know the Tax Authorities already have or can reasonably be expected to receive.
A sustainable tax position should remain capable of being explained and legally defended when the information reported by the taxpayer is compared with data obtained from other sources.
International Taxation
We provide advice on international tax matters where there are connections between Spain and other jurisdictions.
Tax residence, income arising in different countries, foreign assets, international investments and ownership interests in foreign companies may create tax obligations that should be considered together.
In cross-border matters, it is particularly important to avoid solutions based exclusively on the rules of one jurisdiction without considering the consequences that the same transaction may produce in another.
Where necessary, we coordinate our work with tax professionals in other jurisdictions.
We also provide advice and professional coordination in matters involving Spain and the United States, including business projects and tax situations involving both countries.
Companies, Professionals and Individuals
Tax issues may arise both in business activities and in the personal assets and transactions of individuals.
A commercial transaction, transfer of assets, investment, inheritance, corporate reorganisation or professional activity may have significant tax consequences.
As a multidisciplinary law firm, we can consider the tax issue together with the underlying legal transaction that gave rise to it.
This avoids treating taxation in isolation where the same transaction also has civil, corporate, inheritance or international consequences.
Tax Lawyers in Spain
At EBAN Abogados, we provide legal advice where a tax matter requires analysis, regularisation or representation in dealings with the Spanish Tax Authorities.
We do not provide routine tax return preparation or accounting services, nor do we prepare tax filings with the objective of achieving a predetermined financial result.
We examine the actual circumstances, the available information and the applicable law in order to determine the tax position that can properly and sustainably be supported.
Where there are sufficient grounds to challenge the position of the Tax Authorities, we defend the taxpayer. Where a situation needs to be regularised, we advise on the legally appropriate way to do so.
Initial consultations are free of charge.
The objective is not to pay more tax or less tax. It is to determine what should properly be reported and paid according to the facts and the applicable law.
EBAN Abogados
Tax Law · Tax Disputes · Tax Regularisation · International Taxation
