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Declaring worldwide assets to Hacienda

Declaring worldwide assets to Hacienda

Old Mar 6th 2013, 7:08 pm
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Default Re: Declaring worldwide assets to Hacienda

€65 / €75 in Madrid, depending on the complexity of the reporting.
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Old Mar 6th 2013, 7:24 pm
  #347  
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Default Re: Declaring worldwide assets to Hacienda

Originally Posted by Fred James View Post
I think you will find that is for each declaration. In other words each page that has to be completed. So, if you have a share portfolio of 50 shares, that is 50 declarations.

That said €15 is cheap. I have seen €50 quoted.

And of course, if you have the maximum holding of premium bonds (30000) then, assuming they have to be declared which is not clear, that's an awful lot of pages as each one has a unique number.

It really is not that simple.

The gestors will probably make more money out of this than the government will!

The online declaration is actually more complicated than doing the average tax return and that is typically €100 or more.
I wouldn't doubt you Fred except to say that I have been to a seminar today regarding this subject and the Tax advisor who gave us the information regarding exactly what assets needed to be declared offered to
"assist anybody with their declarations at a cost of €15 per person."

Basically the assets to be declared fall into three categories

1. Any current/savings accounts - with a balance of €50.000 or more. If more than one bank account is held and the total of funds is €50.000 or more this must be declared.

2. All property or rights of property - with a value of €50.000 or more. The value of the property for instance a house is deemed to be the purchase price. Even if the house is jointly owned the declaration must be submitted.

3. Share, securities, life insurance investment policies with a value of €50.000 or more

The declaration is a once only obligation and it is not necessary to complete again every year, unless the value of the reportable asset increases by €20.000 or more per year.

Penalty for Non declaration;
The fines for not submitting the required declaration, or submitting it out of date are extremely high if the return is not filed the date stated which for this year is April 31st

A fine of €5.000 per undeclared asset with a set minimum of €10.000
A fine of €100.00 per undeclared asset with a minimum of €1.500 if the declaration is submitted late without any notification from the Tax Agency

I would just add that all this is based on what information we were given today. Is the information correct? I have no idea as I am personally not affected by it so be your own judge.
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Old Mar 6th 2013, 9:03 pm
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Question Re: Declaring worldwide assets to Hacienda

Yes I think we know by now what the basic requirements are, if not the exact details.

The fines are actually very much larger than you quote, to the extent that you could be fined at least as much as the whole value of the asset and another 30% or more in addition.

I still think that it will cost a lot more than €15 per person. It would not be worth their while to charge such a small amount.

By the way, April 31st doesn't exist!
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Old Mar 6th 2013, 9:11 pm
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Default Re: Declaring worldwide assets to Hacienda

May be your are right about the charge but that was the price he quoted in front of a room full of people.
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Old Mar 7th 2013, 6:55 am
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Default Re: Declaring worldwide assets to Hacienda

Originally Posted by Domino View Post
I note that (so far) no one has made a comment about this, a supposed "tax fiddle" that is known as the Wincham Plan/Method.
I have heard conflicting reports about it, but when you read this
http://www.dailymail.co.uk/news/arti...y-company.html
then perhaps it may, just may, have some credence.

But as I see it with the Spanish requirement to report assets then the shares you hold in an overseas company will have to be reported if valued at over €50k, as it is a "catch-all" report they are demanding.

Directorship doesn't necessarily denote shareholding and that is IMHO a relatively important matter, but then not being a director on the Companies House register whilst having a major shareholding and any form of control of the company is defined as being a Shadow Director.

So I think the jury is out on this one.
unless you own a couple of oil companies and employ an office full of accountants and lawyers.

`
..... no oil companies, nor lawyers, I am afraid - but I have read somewhere (or seen in a blog) that the cost to carry out the whole transaction would set you back by about £ 10 k? It would also mean becoming 'non resident' - does any one have any experience of this?
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Old Mar 7th 2013, 7:02 am
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Default Re: Declaring worldwide assets to Hacienda

We've just been quoted 30 - 40 euros for 4 submissions - 2 each.
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Old Mar 7th 2013, 7:04 am
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Default Re: Declaring worldwide assets to Hacienda

Several people in this discussion have said that they will revert back to UK tax domicile and give up resident status - at least that's what I thought they planned - how do you inform the Hacienda that you will become non resident as from some date? I ask not because some may wish to avoid the asset declarations - but if someone has a legitimate reason, such as need to return to take case of an aged relative...
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Old Mar 7th 2013, 7:41 am
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Default Re: Declaring worldwide assets to Hacienda

Originally Posted by snikpoh View Post
We've just been quoted 30 - 40 euros for 4 submissions - 2 each.
If that's for all the submissions its a very fair price. Perhaps there is a lot of competition for the work.

It does tend to highlight how ridiculously high some of the charges for doing a basic Renta declaration are which is, in most cases, simpler than this asset declaration!

Most of the work done on this declaration is by the individual who has to pull all the details of the assets together. Entering the actual data is pretty simple. They do seem to have come up with a very user friendly program for a change.
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Old Mar 7th 2013, 8:26 am
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Default Re: Declaring worldwide assets to Hacienda

Around here about 65€ plus IVA.
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Old Mar 7th 2013, 9:22 am
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Default Re: Declaring worldwide assets to Hacienda

Originally Posted by UrbanTom View Post
Several people in this discussion have said that they will revert back to UK tax domicile and give up resident status - at least that's what I thought they planned - how do you inform the Hacienda that you will become non resident as from some date? I ask not because some may wish to avoid the asset declarations - but if someone has a legitimate reason, such as need to return to take case of an aged relative...

Surely not wanting to pay these taxes are a legitimate reason for giving up residency?

As long as the conditions for obtaining UK residency are met.

In fact we don´t have to have any reason legitimate or otherwise to chose where we want to reside, as long as the criteria is met.
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Old Mar 7th 2013, 9:59 am
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Default Re: Declaring worldwide assets to Hacienda

Funny old world. We got into the Spanish tax system in the 90's because we were thousands better off. When we left it was the reverse.

I would say that €65 is a bargain for those new asset disclosures.
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Old Mar 7th 2013, 10:10 am
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Default Re: Declaring worldwide assets to Hacienda

this all reminds me of the old song
"There's a hole in my bucket dear Liza"

there are so many holes in all this that it seems to make Data Protection an oxymoron
everyone might just as well post their assets here on BE

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Old Mar 7th 2013, 10:21 am
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Default Re: Declaring worldwide assets to Hacienda

An American has pointed out that many foreign bank accounts don't have Iban numbers...wonder how the computer model will cope with those
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Old Mar 7th 2013, 10:38 am
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Default Re: Declaring worldwide assets to Hacienda

Originally Posted by jackytoo View Post
An American has pointed out that many foreign bank accounts don't have Iban numbers...wonder how the computer model will cope with those
True. IBAN is essentially a European system which some other countries also use.

Canada, USA, Australia and New Zealand are examples of some of those that do not.

However on the asset reporting form they are not essential. There is an option to enter whatever identification the bank uses.

Last edited by Fred James; Mar 7th 2013 at 10:41 am.
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Old Mar 7th 2013, 11:29 am
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Default Re: Declaring worldwide assets to Hacienda

In answer to Fred,my tax person says "Premium Bonds comes under the section 2-Securities,Holdings etc.."and she tells me to declare under that heading.Thing is,even if you hold the full hit ( £30,000) this doesn't oblige you to declare them.Further to the subject of limited companies you need to really take care there's a link on this forum subject somewhere by a spanish hot-shot abogado who drives a road through these schemes;the Spanish hacienda is giving it a coat of looking at.
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