The consequences of failure to comply with Model 720 are disproportionate in view of the objectives pursued by the regulatory framework, which are to ensure tax control and the fight against fraud.
The new method for calculating capital gains tax will offer taxpayers the possibility of choosing between two options (objective and real method), being able to opt for the more favorable one, as long as the value of the land undergoes a real increase.
It is a mechanism to provide incentives for certain activities insofar as the results derived from them have repercussions not only for the company that carries them out, but also for society as a whole.
Upon registration, and as long as the Tax Agency does not reject the application, the operator receives the NIF-VAT tax identification number to be able to issue or receive VAT-exempt invoices for intra-Community operations.
In transactions between unrelated companies, market forces often determine the terms of commercial and financial relationships, whereas between related companies such forces may not directly affect prices.
When it is necessary to enter the constitutionally protected domicile of a taxpayer or make records in it, the Tax Administration must obtain the consent of that person or the appropriate judicial authorization.