The government of Spain announced on Tuesday that it gave the go-ahead to the Draft Law against Tax Fraud. Through which it will increase its control over the operations carried out by citizens with Bitcoin (BTC) and other cryptocurrencies.
The Draft Law against Tax Fraud was called “Law of Prevention Measures to Combat Tax Avoidance.” It was precisely approved before the Council of Ministers of Spain. And now it will go before Parliament for final approval.
In fact, the Minister of Finance, María Jesús Montero, has assured that:
“For the Government, the fight against tax fraud is an absolute priority. There can be no social justice without tax justice.
Draft Law against Tax Fraud
To clarify, the Law of Prevention Measures to Combat Tax Avoidance has been under debate since 2018.
Currently, through a statement issued by the Ministry of Finance of Spain, Minister María Jesús Montero, detailed the measures implemented in Spain. With respect to the Draft Law against Tax Fraud.
Basically, the government’s intention is to force citizens to provide detailed information on balances. Likewise, of operations carried out inside and outside of Spain.
Specifically, it seeks to establish strict controls on the use of cash, cryptocurrencies and digital payment systems. As a measure to prevent tax fraud.
Consequently, now citizens, businesses and companies of traditional financial services or cryptocurrencies. They must present constant reports on any type of commercial activity, related to payments in cash or cryptocurrencies.
Unquestionably, whether they are acquisitions, exchanges, transfers, collections, payments or remittances. Very important, citizens must report any type of financial movement, carried out within or outside the country.
In this regard, Minister María Jesús Montero indicated:
“I will not give up, nor will I look for shortcuts in the fight against tax fraud. Existing policies and legislation will be strengthened to guarantee compliance with this law.
Limitation of cash payments
Likewise, the Draft Law against Tax Fraud imposes new limitations. On the amount of money that citizens can use daily.
The truth is, they do it as a way to increase control. On transactions that occur with cash, and cryptocurrencies in Spain.
- Reduce to 1,000 euros between professionals and entrepreneurs.
- Daily cash payments between individuals remain at a figure of 2,500 euros.
- Payments between individuals with tax domicile outside the country are reduced to 10,000 euros.
Likewise, this Draft Law against Tax Fraud expands the list of tax debtors in the state. Attaching all those who have debts of more than 600,000 euros. When previously only those with debts exceeding one million euros were included.
Even the Draft Law against Tax Fraud also eliminates tax amnesties. As a way to end the privilege that benefited the great patrimonies. In front of the rest of citizens who comply with their tax obligations.
Fight dual-use software
The truth is that these computer programs allow you to modify the actual billing figures. To record a lower number of sales and with a lower amount.
It should be noted that the Draft Law against Tax Fraud also prohibits the use of software for the preparation of double accounting between companies and companies. Who provide services in or from the country.
So far, there is not only a ban on its use. Rather, a specific penalty regime will be approved for the manufacturers of these types of computer programs and the entrepreneurs who have them.
The objective is not to allow neither the production nor the possession of computer programs and systems. That enable the manipulation of accounting and management data.
Obviously, another aspect that draws attention is that the Draft Law against Tax Fraud will place special emphasis on digital companies. What would cover any technological branch. Not only to service providers like Bitcoin, but also to Fintech and all related ones.
As a curious fact, a recent effort led each of the members of the Congress of Spain to receive cryptocurrencies worth 1 euro. As a way to make legislators aware of the potential of this cryptocurrency and Blockchain technology.
To conclude, Minister Montero stressed: «One of the main objectives of this Draft Law against Tax Fraud is to guarantee the collection of 800 million euros for each fiscal year. It also aims to strengthen tax collection practices in Spain«.
I say goodbye with this phrase from José Cecilio Del Valle: «The government that demands a tax increase with one hand. Must with the other seek the increase of wealth«.