Spanish Tax Agency 2006 Report
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R E P O R T
2006 I O
I
II
III
IV
N F
C
D H A
E P
T
E
R
X S
The Tax Agency
1
Summary of Operations
33
Opinion and participation of citizens
87
Appendix of Statistics
93
R E P O R T
2006 I
I.
N
D
E
THE TAX AGENCY
X
1
1. MISSION.
2
2. THE TAX AGENCY IN FIGURES.
3
3. ORGANISATIONAL STRUCTURE.
4
4. BUDGETS: REVENUE AND EXPENSES
8
5. HUMAN RESOURCES.
11
6. INFORMATION AND COMMUNICATION TECHNOLOGY.
15
7. ALLIANCES. INSTITUTIONAL RELATIONS. 7.1. Autonomous Communities. 7.1.1. Autonomous Communities under general regime.
17 17 17
7.1.2. Relationship between the Tax Administrations under special (Foral) regime. 7.2. Local Entities.
19
7.3. Co-operation agreements.
20
7.3.1. Social Co-operation.
20
7.3.2. Other co-operation Agreements.
21
7.4. International Relations.
22
7.4.1. Technical Co-operation.
23
7.4.2. Training activities.
27
7.4.3. Exchange of experiences with other Administrative Bodies.
27
8. PLANNING OF ACTIVITIES. 8.1. Planning and programme of activities for 2006.
II.
19
28 28
8.1.1. Objectives Plan 2006.
28
8.1.2. General Taxation Control Plan 2006.
31
8.1.3. Commitments of Central Services for 2006.
31
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS.
33 34
1.1. Personal Income Tax.
35
1.2. Corporation Tax.
36
1.3. Non-resident Income Tax.
37
1.4. Value Added Tax.
37
1.5. Excises.
39
1.6. Fees and other income.
39
R E P O R T
2006 I
N
D
E
X
1.7. Net Tax Collection 2006. Refunds.
40
1.7.1. Personal Income Tax.
40
1.7.2. Corporation Tax.
42
1.7.3. Non-resident Income Tax.
42
1.7.4. Value Added Tax.
42
1.8. Direct Tax Effect.
44
2. TAX ROLL.
45
3. TAX RETURNS PROCESSED.
48
3.1. Tax returns filed.
48
3.2. Electronic tax returns filed by companies.
49
3.3. Other documents processed by the administrative offices for Excises. 3.4. Documents processed by Customs.
51 51
3.5. Tax returns with right to automatic refund in the self-assessment system.
53
3.6. Communications relating to rapid refunds to persons not obliged to file an Income Tax return. 4. TAXPAYER SERVICES. 4.1. Information Services.
54 55 55
4.1.1. Non-personalised information.
55
4.1.2. Individual information.
55
4.2. Assistence services.
56
4.2.1. Pre-populated Income Tax Return.
56
4.2.2. Computer help programmes
56
4.2.3. Appointment service.
57
4.2.4. Call centre.
57
4.2.5. Voice recognition unit - 901 12 12 24.
58
4.2.6. Advance credit of deduction for maternity.
58
4.2.7. Improving the Customs office.
58
4.3. Facilities for the payments of taxes due.
59
4.3.1. Collaborating institutions.
59
4.3.2. Deferment and payment by instalments.
59
4.4. Other services.
60
4.4.1. Issue of tax certificates.
60
4.4.2. Advanced price agreements.
61
R E P O R T
2006 I
N
D
E
5. TAX AND CUSTOMS CONTROL. 5.1. Extensive control. 5.1.1. Extensive control operations for internal taxes.
X
62 62 62
5.1.1.1 Mainteinance of the roll.
62
5.1.1.2. Check of annual tax returns.
63
5.1.1.3. Check of periodic tax returns.
64
5.1.1.4. Check of periodic tax returns. VAT for Exporters and other Economic Agents.
66
5.1.1.5. Exporter Register and other Economic Operators.
67
5.1.1.6. Special Tax on Certain Means of Transport (IEDMT).
67
5.1.2. Operations on taxpayers in special Small Business Scheme (modules scheme). 5.1.3. Extensive control activities with large companies.
68
5.1.4. Control activities and Intrastat tax returns.
69
5.1.5. Management and Audit Activities for Excises.
70
5.2. Selective checks and investigation activities.
71
5.2.1. Audit activities (traditional checks).
71
5.2.2. New selective investigation and tax offence activities.
72
5.2.3. Customs Surveillance actions.
79
5.2.4. Analytic control carried out in the Customs Laboratories.
81
5.3. Tax collection management.
III.
68
81
5.3.1. Debts from settlements made by the Tax Agency.
82
5.3.2. Debts to other bodies.
82
5.3.3. Management of public fees.
85
5.3.4. Other actions related to the control of the collection process.
85
OPINION AND PARTICIPATION OF CITIZENS.
1. STUDIES AND OPINION POLLS.
87 88
1.1. Public Opinion and Tax Policy (Sociological Research Centre).
88
1.2. Public Opinion and Taxation (Institute for Fiscal Studies).
89
1.3. Suggestions box for the Tax Fraud Prevention Plan.
91
2. SUGGESTIONS.
91
IV.
93
APPENDIX OF STATISTICS.
R E P O R T
2006
I. The Tax Agency
1
REPORT
2006
I.THE TAX AGENCY
1. MISSION
T he State Tax Agency (henceforth, the Tax Agency) was created by the General State Budget Act 1991, and came into being on 1 January 1992. It was constituted as an entity under public law assigned to the Ministry of Economy and Finance through the Secretary of State for Finance and Budgets. As a result of this configuration, it has its own legal personality which is separate to that of the General State Administration, and this confers a degree of autonomy in budgetary and human resource management issues, without undermining the essential principles that govern all public sector activity. The Tax Agency is responsible for the effective application of the state tax and customs system, and for those resources belonging to the national Public Administration and the European Union which are entrusted to it for management by law or agreement. The Tax Agency is therefore responsible for the application of the tax system in order to fulfil the constitutional principles that all should contribute to the sustainability of public expenditure in accordance with their economic capacity. As a result, it has no authority for the preparation and approval of tax regulations, in terms of public expenditure, or for the allocation of public resources for different purposes. The comprehensive management of the state tax and customs system involves a wide range of activities, which include: The management, audit and collection of the taxes for which it is responsible (Personal Income Tax, Non-resident Income Tax, Corporation Tax, Value Added Tax and Excises). The performance of important functions related to the income of the Autonomous
2
Communities and Cities with Statutes of Autonomy, both in relation to the management of Income Tax and in the collection of other income for these Communities, whether this role is established by legislation or through pertinent co-operation agreements. The collection of revenue belonging to the European Union. Customs management and the control of contraband goods, and the guarantee of security in the logistics chain. The collection of State Public Sector fees in the voluntary payment period. The collection of public income due to the General State Administration and associated or dependent Public Bodies through enforcement. Participation in the persecution of certain offences, including offences against the Public Treasury and offences relating to contraband goods. The Tax Agency's main objective is to encourage the voluntary compliance of citizens with their tax obligations. It performs two lines of action to achieve this: on the one hand, the provision of information and assistance services for taxpayers in order to minimise the indirect expenses associated with meeting tax obligations and, on the other, through the detection and correction of tax defaults through control actions. In addition, it is also responsible for other complementary functions, such as providing assistance to jurisdictional bodies and co-operation with other Public Administrations.
REPORT
I.-
2006
THE TAX AGENCY
2. THE TAX AGENCY IN FIGURES
DESCRIPTION OF THE TAX AGENCY 2006 BUDGET 2006
1,259,612 million euros
WORKFORCE Civil Servants Auxiliary staff Total
24,883 2,364 27,247
REGIONAL DEPLOYMENT Number of buildings Total area
535 1,267,391 m2
TAXPAYER ROLL Taxpayers Businesses Large Companies
41,940,001 4,964,552 34,869
GROSS TAX REVENUE MANAGED
221,414 million euros
THE TAX AGENCY ON-LINE
Number of visits to www.agenciatributaria.es
193,876,355
Number of Income Tax Returns submitted by Internet
3,775,468 869 (99.77% de of disposals in the year)
On-line auctions: number of disposals
MAIN RESULTS
Tax Data/Pre-populated Tax Returns sent
15,083,091
Pre-populated Tax Returns confirmed Advance credit for working mothers
4,197,629 650,177 million euros (733,159 mother)
Telephone calls answered (Only including calls answered by by Tax Agency service) Appointments arranged (Appointments arranged for the Income Tax campaign 3,343,687) Use of the PADRE program (% of Income Tax returns prepared with this help program)
5,476,178 calls 3,700,038 appointments 97.89%
Applications for Rapid Refund to Persons not obliged to file Income Tax Returns 556,727 applications Applications for Postponement and Payment in Instalments Average time for refund Average time in Customs Office Value of merchandise apprehended, discovered or seized Direct collection effect*
473,600 applications for 4,974.97 million euros 25 days 28.32 minutes 3,860.58 million euros (72 % of which was drugs) 5,310 million euros
*Includes both income from control activities carried out by the Agency's bodies and reductions for agreed refunds.
3
REPORT
2006
I.THE TAX AGENCY
3. ORGANISATIONAL STRUCTURE
T he structure of the Tax Agency is divided into Central Services and Regional Services. Its management structure includes the President, who is the Secretary of State for Finance and Budgets, the Director General, the Senior Management Board, the Permanent Management Committee and the Co-ordinating Committee for the Regional Directorate. Official governing bodies Senior Management Board. This acts as the advisory body for the President of the Agency and as a participating body for the Autonomous Communities and for Cities with Statutes of Autonomy in the Tax Agency. It is chaired by the President of the Agency and consists of the Director General, the Departmental and Agency Services Directors, the Under-secretary for Economy and Finance, other General Directors from the Ministry and representatives of the Autonomous Communities. Permanent Management Committee. This advisory body is chaired by the President of the Agency or, in the absence of the President, by the Director General, and consists of all the Departmental and Services Directors, the heads of the Secretary of State's Office for Finance and Budgets and the Director General, together with the Special Delegate for Madrid and, since 2006, also the Central Delegate for Large Taxpayers. The Mixed Commission for Co-ordination of Tax Management. This is a participatory body which provides permanent representation for the Autonomous Communities and Cities with Statutes of Autonomy in the Tax Agency. The Co-ordinating Committee for the Regional Directorate. This is the normal vehicle for co-ordination and communication of information between the management of the Agency and its regional organisation. It is chaired by the Director General and consists of the Departmental and Service Directors and all the Special Delegates.
4
Security and Control Commission. In addition to preparing the criteria and proposals for regulations which ensure that the activities of the Tax Agency strictly comply with the provisions which govern it, this body co-ordinates the various Sectorial Commissions on Security and Control which exist for each Department. Central Services The Agency's Central Services basically follow an organisation model of functional operational areas and support areas. In summary, the basic functions of each Department and Service are: Tax Management Department. It provides information and helps taxpayers to meet their taxation obligations more easily. In addition, it carries out wide ranging checks using extensive IT support in order to verify, for example, that there are no calculation errors or discrepancies between the data provided by the taxpayer in their tax return and that which appears in the Tax Agency's database. It also carries out checks on taxpayers in Special Small Business regime and the tax roll. Furthermore, it is also responsible for the simplification of taxpayers' formal obligations. Financial and Tax Audit Department. This Department manages, plans and co-ordinates tax audit, studying, designing and planning the actions and procedures of the audit services. It also has functions related to the verification, control and prevention of tax fraud, and provides tax management assistance to large companies. Tax Collection Department. This Department is responsible for collecting the debts and sanctions not paid voluntarily - voluntary payment is made through financial institutions which provide this service for the Tax Agency. It also manages the collection of public resources, entrusted to the Tax Agency by law or agreement. In addition, it also facilitates the payment of debts by taxpayers by granting deferments and payment in instalments.
REPORT
2006
I.THE TAX AGENCY
3. ORGANISATIONAL STRUCTURE
Customs and Excises Department. This Department manages and inspects taxes and other charges on foreign trade, the traditional resources of the European Union Budget and the excises and subsidies for agriculture and exporting. Since 2005, it has also been responsible for guaranteeing the security of the logistics chain. The Customs Surveillance Division is responsible for managing the fight against Customs fraud, the suppression of smuggled goods and money laundering, and collaborates in financial and tax audits in the fight against organised tax fraud.
accounting of tax income, the preparation and implementation of comprehensive protection plans and the management of the Printing and Enveloping Centre, among other functions.
Organisation, Planning and Institutional Relations Department. This horizontal department is responsible for co-ordinating the planning of the Tax Agency's activities and the general relations of the Agency with the Autonomous Communities and with other public bodies and institutions, whether foreign or national, and international bodies and social, economic or professional bodies and associations. This Department acts as the Permanent Secretariat for the Mixed Commission for Co-ordination of Tax Management.
Internal Audit Service. The Internal Audit Service provides audit and audit services. the prevention, detection and investigation of irregular conduct; the co-ordination of actions relating to such conduct; and evaluation of the Tax Agency's internal security and control systems. It also carries out budgeting, analysis and monitoring functions of the tax revenue and monitors compliance with the Agency's Objectives Plan. Finally, it is responsible for the co-ordination and development of the Operating Unit's functions of the Council for the Defence of the Taxpayer. Furthermore, it also holds the Vice-presidency of the Sectorial Security and Control Commissions.
Taxation IT Department. This Department works with all operational areas offering a powerful computer system and a large data capture and processing system, in which the latest information and communication technologies have been fully incorporated . Human Resources and Economic Administration Department. This Department is responsible, on the one hand, for the employment policy and management of the legal and financial systems of the Tax Agency's human resources, the selection and training of its personnel and labour relations and, on the other hand, the financial and economic management of the Tax Agency, the preparation of multi-year budget scenarios and the annual budget, the management of acquisitions, real estate management,
Legal Service. Legal assistance is provided to the Tax Agency through a system based on a legal service of internal and immediate support -the Tax Agency's Legal Service - and this is complemented by the general State Lawyers network. The Agency's Legal Service provides legal advice and representation and defence in court.
The Director General's Office. The Office provides advice and support to the Director General of the Tax Agency. Central Delegation for Large Taxpayers On 1 January 2006, the Central Delegation for Large Taxpayers came into operation. This body has powers throughout the national territory which enables the co-ordinated control of large taxpayers and improves the attention and service provided to them. The Central Delegation was created to provide coordination and integration among the functional areas of the Tax Agency.
5
REPORT
2006
I.THE TAX AGENCY
3. ORGANISATIONAL STRUCTURE
Territorial Network The Territorial Network reproduce the organisation by areas within their sphere. There are 17 Regional Offices (named Special Delegations), one for each Autonomous Community, and 51 Delegations, usually at provincial level, which include 237 local branches (named Local Administrations), 34 of which are Customs offices.
REGIONAL SERVICES
NUMBER OF OFFICES Special Delegations
17
Delegations
51
Administrations Customs Administrations
6
203 34
Collection Department
Customs Department
Inspection Department
Taxation Management Department
Central Delegation of Large Taxpayers
Administrations
Delegations
Special Delegations
General Department
Presidency ( Secretary of State for Finance and Budgets)
Organisations, Planning and Institutional Relations Department
Human Resources and Economic Administration Department
IT Department
Legal Service
Internal Audit Service
Permanent Secretariat of the Mixed Commission
2006
REPORT I.THE TAX AGENCY
3. ORGANISATIONAL STRUCTURE
7
REPORT
I.-
2006
THE TAX AGENCY
4. BUDGETS: REVENUE AND EXPENSES
T he Tax Agency has its own annual budget, the initial amount of which is approved by the Spanish parliament. In addition, the General
State Budget Act covers possible modifications in accordance with their activity.
Revenue budget
IMPLEMENTATION STATUS OF REVENUE BUDGET 2006
DEFENITIVE FORECASTS (1) Duty and other revenue Current transfers Asset revenue Disposal of real investments Capital transfers Financial assets TOTAL
RIGHTS APPLIED TO THE BUDGED (2)
% (2)/(1)
30.866 1,127.288 2.834 0 85.668 12.956
30.001 1,127.053 3.200 0.134 85.668 12.818*
97.20 99.98 112.91 — 100.00 98.93
1,259.612
1,258.874
99.94
In millions of euros. * Whilst as a result of their economic nature they are not recognised as net rights, they include 12.347 million euros corresponding to the Liquid assets Surplus applied to the financing of the budget.
The above table shows that 96.33% of total revenue is collected from transfers; 89.53% are current transfers to finance current expenses (personnel, assets and services), whilst 6.80%
8
are capital transfers to finance the investments of the Tax Agency. The remaining income comes from fees, sales of publications and other minor sources of income.
REPORT
I.-
2006
THE TAX AGENCY
4. BUDGETS: REVENUE AND EXPENSES
REVENUE BUDGET: TRANSFERS 2006
DEFINITIVE FORECASTS (1) For operational expenses 992.616 From participation in collection of assessment activities 61.780 From compensation of expenses for other services 3.332 From premium for collection on own resources 67.771 From other Ministerial Department 0.069 From Autonomous Bodies 0.783 From Abroad 0.937
NET RIGHTS RECOGNISED (2)
% (2)/(1)
992.616 61.780 3.332 67.771 0.048 0.783 0.723
100.00 100.00 100.00 100.00 69.57 100.00 77.16
1,127.288
1,127.053
99.98
For financial investments 42.173 From participation in collection of assessment activities 43.220 From other Ministerial Department 0.275
42.173 43.220 0.275
100.00 100.00 100.00
85.668
85.668
100.00
1,212.956
1,212.721
99.98
CURRENT TRANSFERS
CAPITAL TRANSFERS TOTAL TRANSFERS In millions of euros.
Expense budget
STATUS OF IMPLEMENTATION OF EXPENSE BUDGET 2006
DEFINITIVE CREDIT (1) Personnel expenses Current expenses Financial expenses Investments Financial assets TOTAL
OBLIGATIONS RECOGNISED (2)
% (2)/(1)
843.725 338.010 0.050 77.218 0.609
836.479 332.693 0.017 75.820 0.476
99.14 98.43 34.00 98.19 78.16
1,259.612
1,245.485
98.88
In millions of euros.
9
REPORT
I.-
2006
THE TAX AGENCY
4. BUDGETS: REVENUE AND EXPENSES
EVOLUTION OF CHAPTER II: CURRENT EXPENSE S IN GOOD AND SERVICES
2005 1. Expenses directly related with collection objectives
122.869
14.47
7.866
8.760
11.37
14.481
12.931
-10.70
84.991
101.178
19.05
187.101
191.599
2.40
60.503
63.501
4.96
25.063
23.999
-4.25
33.928
35.750
5.37
48.611
48.741
0.27
18.996
19.608
3.22
15.871
18.225
14.83
310.310
332.693
7.21
2.A Building operation expenses (maintenance, supplies, cleaning, security) 2.B Office expenses (furnishings maintenance, office supplies and telephone communications) 2.C Building rental 2.D IT expenses (rental and maintenance of equipment, IT equipment not classed as assets, electronic communications, studies and work carried out 2.E Others 3. Customs Surveillance TOTAL
% DIF. 2006 / 2005
107.338
1.A Income Tax And Wealth Tax campaigns 1.B Official forms and other taxation forms 1.C The Agency’s strategic communications campaigns, telephone helpline services for the public, postal communications, legal-disputed, valuations and expert opinions, custody and deposit, expenses and costs of officer’s travel. 2. Indirect expenses related with collectio n objectives
2006
In millions of euros.
EVOLUTION EXPENSES OF INVESTMENT
Buildings and similar Machinery and installations Transport equipment Furniture and fittings IT equipment and applications Other fixed assets TOTAL In millions of euros.
10
2005
2006
% DIF. 2006 / 2005
26.003 5.990 11.066 10.704 33.034 0.016
24.905 6.661 10.566 6.199 27.438 0.051
-4.22 11.20 -4.52 -42.09 -16.94 218.75
86.813
75.820
-12.66
REPORT
I.-
2006
THE TAX AGENCY
5. HUMAN RESOURCES
On 31 December 2006, the total number of people employed by the Tax Agency was 27,247, i.e. 21 people more than in 2005, an increase of 0.37% in civil servants and a decrease of 3% in auxiliary staff. In absolute terms, in 2006 there was an increase of 92 civil servants and a decrease of 71 auxiliary staff. These figures do not include the 1,557 temporary workers recruited for the Personal Income Tax Return period. Distribution of staff in Central Services and Regional Services The figures for staff employed by the Tax Agency are well below the average in most
other OECD member states. According to OECD figures for 2004, in Germany there were 699 inhabitants for each tax authority employee: in the United Kingdom there were 810; in France, 790, and in the United States, 2,974, whilst in Spain there were 1,557. The distribution of personnel in the Tax Agency on 31 December 2006 was as follows: 87.68% of the staff belong to the regional services, whilst the remaining 12.32% are employed by central services. Auxiliary staff account for 8.68% of the total, whilst civil servants account for 91.32%.
SUMMARY OF WORKFORCE
CENTRAL SERVICES Civil Servants Auxiliary staff
3,112 246
TOTALS
3,358
REGIONAL SERVICES 21,771 2,118 23,889
SUBTOTALS 24,883 2,364 27,247
2,118 3,112 246
Civil Servants Services Regional Auxiliary staff Services Regional Civil Servants Services Central Auxiliary staff Services Central
21,771
By civil service grade, 9,170 workers (37% of the total) are in Group C, particularly in the General Administrative Areas and Customs Surveillance Officers. 7,170 civil servants (28% of the total) are in Group B. This consists mostly of Tax Technical Corps, in addition to the Customs Executive Corps. The next most important in terms of numbers is Group D with 6,377 employees (26% of the total), consisting mostly of civil servants from the General Auxiliary Corps. Finally, Group A (2,129 people) represents 9% of the total. The most important
part of this Group is the Senior Tax Inspection Corps and the Senior Customs Officer Corps. The relative proportions of the different groups of civil servants were subject to some small changes similar to those in previous years: a decrease in the relative importance of Group D (7.14% less: a decrease of 455 people) and an increase in Group C (an increase of 4.91%: 450). Group B increased by 0.88%: 63 civil servants, and Group A by 1.74%, 37 civil servants.
11
REPORT
I.-
2006
THE TAX AGENCY
5. HUMAN RESOURCES
DISTRIBUTION OF STAFF BY GRADE NUMBER
CIVIL SERVANTS at /2006
NUMBER
%
GROUP A Senior Tax Inspector Senior Customs Officers Senior IT and Systems Staff Public Finance Architects Customs Chemistry Professors State Lawyers Senior Civil Service Administrators Other Group A
1,562 193 123 48 32 30 23 118
TOTAL GROUP A
2,129
9
GROUP B Public Tax Technician Customs Executive Officer Systems and IT management Civil Service Manager Chief Customs Surveillance Inspectors (SVA) Public Finance Technical Architects Other group B
6,108 442 264 162 68 21 105
TOTAL GROUP B
7,170
28
GROUP C General Administrative, Public Finance officers General Administrative, Tax Administration Customs Surveillance Agents General civil service administrators IT auxiliary technicians Administration of Autonomous Bodies Other group C TOTAL GROUP C
4,458 2,020 1,074 809 710 38 61 9,170
37
GROUP D General Auxiliary Staff, Specialising in Tax Administration General Auxiliary Civil Service Staff Auxiliary Staff from Autonomous Bodies Other group D
5,785 452 90 50
TOTAL GROUP D
6,377
TOTAL GROUP E
37
TOTAL CIVIL SERVANTS
24,883
26 — 100
DISTRIBUTION OF CIVIL SERVANTS/AUXILIARY STAFF
NUMBER
%
Civil Servants
24,883
91
Auxiliary staff
2,364
9
27,247
100
TOTAL
12
REPORT
I.-
2006
THE TAX AGENCY
5. HUMAN RESOURCES
By functional areas, operational areas (Management, Audit, Collection and Customs) account for 19,900 people, representing 73.03% of the total staff; within this, Tax Management employs 6,863 people, followed by Audit, which employs 4,894, Collection, which employs 4,504 and Customs which employs 3,639 people. The
Human Resources and Economic Administration areas are responsible for 13.03% of employees; the Head Office accounts for 2.76% of staff; Internal Audit is responsible for 0.55% and Legal Services accounts for 0.52%, whilst, finally, Institutional Relations is responsible for 0.21% of staff.
DISTRIBUTION OF PERSONNEL BY AREAS
AREA
NUMBER
Taxation management Audit Collection Customs Human Resources and Economic Administration Taxation IT Head office Internal audit Legal Service Institutional Relations
6,863 4,894 4,504 3,639 3,550 2,696 752 149 143 57
TOTAL
27,247 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0
Taxation management
Taxation IT
Audit
Head offices
Collection
Internal audit
Customs
Legal Service
Human resources and economic admin
Institutional Relations
13
REPORT
I.-
2006
THE TAX AGENCY
5. HUMAN RESOURCES
With regard to the gender distribution of staff, 53.1% are female and 46.9% are male.
The average age of the workforce is 46.41 years old; 46.24 years old for civil servants and 48.17 years old for auxiliary staff.
DISTRIBUTION OF PERSONNEL BY GENDER
WOMEN
%
MEN
%
14,473
53.1
12,774
46.9
By age groups, the distribution is as follows: DISTRIBUTION OF PERSONNEL BY AGE
AGE RANGE NUMBER %
14
18-32
33-40
41-48
49-56
57-70
TOTAL
960
5,078
12,133
6,481
2,595
27,247
3
19
45
24
9
100
REPORT
I.-
2006
THE TAX AGENCY
6. INFORMATION AND COMMUNICATION TECHNOLOGY
T he Tax Agency is one of the pioneers of eAdministration in Europe, and this is bringing permanent improvements in working methods, which have enabled it to develop online services for taxpayers and companies, and for taxation and customs control. The Tax Agency has a Virtual Office at www.agenciatributaria.es, which enables filing tax returns and carrying out other procedures by Internet. One feature of 2006 was the increasing use of such remote methods (Internet and telephone) by taxpayers. The interest in developing the use of such remote methods requires an increase in the overall assistance given to taxpayers, as some require personalised attention due to their particular characteristics (for example, new taxpayers, immigrants and the elderly). Nevertheless, when pre-populated tax return is ready, the public can submit it to the Tax Agency without having to make any type of rectification or to travel to the Tax Agency's offices. In order to improve existing administrative procedures, a special portal has been created on the Agency's website (www.agenciatributaria.es) for the electronic presentation and payment of
Vehicle Registration Tax. Presentation of this tax by Internet will be obligatory from this year, and this will enable an improvement in taxation control as it will enable real time detection of undervaluations and the online checking of the payment of the tax, prior to the registration of the vehicle, boat or aircraft. Finally, it should be stated that the Tax Agency has been on the Internet for 10 years. Since it was created in 1996, the development of the Agency's website and the Virtual Office has facilitated and encouraged a more transparent relationship with the public, against a background of increasing electronic complexity. Every year, taxpayers carry out over 100 million operations by Internet on the Agency's website, which has over 20,000 pages and enables the downloading of more than 60,000 files. The most appreciated services on the website are those related to Income Tax (which cover every step in the process). The website is in constant evolution; in 2006 its design was improved to enable access based on a user profile (depending on whether the visitor is a member of the public, a business or one of the Agency's collaborators), to improve accessibility for people with disabilities and to increase the use of co-official languages.
HARDWARE INSTALLED AT 31 DECEMBER 2006
CENTRAL SERVICES
REGIONAL TERRITORIES
TOTAL
Central Processing Units
2
1
3
Processing speed (MIPS)
19,993
2,633
22,626
419,643
7,251
426,894
52
48
100
768
512
1,280
On-line storage (GB) Tapes/cartridges: physical units Tapes/cartridges: virtual units
15
REPORT
I.-
2006
THE TAX AGENCY
6. INFORMATION AND COMMUNICATION TECHNOLOGY
With regard to the communications network, in 2006 work began on the implementation of a range of Telecommunications Services which include fixed line and mobile voice and data services, both for the corporate network, enabling the transmission of data between electronic devices located in the Tax Office buildings and secure access services to the Tax Agency Intranet from other networks, connection services and internet, and for interconnection with other organisations outside the Tax Agency.
One innovation was the integration of fixed line voice and data communications in a single communications network known as the "multiservice IP network" which uses MPLS technology. This IP/MPLS network supports the Tax Agency's fixed line voice and data corporate network. The increase in the Internet connection capacity of the Tax Agency's Virtual Office has continued. During the Personal Income Tax Return 2006 period, the infrastructure was capable of supporting flow rate requirements of up to 300 Mbps.
TELEPROCESSING LINES 2006
TYPE OF LINE
NUMBER OF LINES PRINCIPAL
Point to point X-25 InterLan Inter net MacroLan TOTAL
BACK UP
SUBTOTAL
3 9 10 1 379
11 2 319
3 9 21 3 698
201 770 3,263,693 20,480 6,107,136
17,997 2,097,152 4,833,796
201 770 3,281,690 2,117,632 10,940,932
402
332
734
9,392,280
6,948,945
16,341,225
With respect to connectivity with the Autonomous Communities, the communications required to offer them the services available on the Tax Agency's Intranet were maintained, and this enabled an increase in their degree of participation in the tax management and, in particular, the Personal Income Tax Return Period. Another new development was the start of the migration process of connectivity between the Tax Agency and other public bodies through
16
SPEED (Kbps) MAIN
BACK UP SUBTOTAL
the Ministry for Public Administration's Administrative Intranet. This will enable an increase in the number of bodies with which the Agency will be able to connect. The Tax Agency is also continuing to strengthen the offer of mobile services by offering confirmation of pre-populated Income Tax Return Forms by Text Messaging (SMS) and the obtainment of connectivity through the installation of new Universal Mobile Telecommunications System (UMTS) networks.
REPORT
2006
I.THE TAX AGENCY
7. ALLIANCES. INSTITUTIONAL RELATIONS
This
section describes the general relationships that the Agency has with the Autonomous Communities and other public bodies and institutions, both national and foreign, and with international bodies and associated social, economic or professional entities. 7.1. Autonomous Communities. 7.1.1. Autonomous Communities under general regime. The Tax Agency manages a range of taxes which represent an important source of finance for Autonomous Communities under joint government. These include, on the one hand, taxes which have been partially assigned (Income Tax, VAT and Excises); and on the other taxes which have been fully assigned (Special Tax on Electricity, Tax on Retail Sale of Certain Hydrocarbons and Special Tax on Certain Means of Transport), and, finally, Wealth Tax, management of which is shared between the Tax Agency and the Tax Authorities of the Autonomous Communities. As a result, the Autonomous Communities also have an interest in the tax administration carried out by the Tax Agency. As such, they are involved in the Tax Agency through the Senior Management Board and the Mixed Commission for Co-ordination of Tax Management and the Regional Taxation Directorate Boards. The Tax Agency and the Autonomous Communities carry out three functions through these bodies: planning, regulation and management.
Objectives Plan and the essential guidelines for the Taxation Control Plan. In addition, they monitored the results of the Objectives Plan. With regard to regulations, before they were approved, the draft regulations, both at the State and Autonomous Community levels, affecting the taxes assigned were reported to the Mixed Commission. In terms of the management functions, in 2006 the development of the recommendations and measures contained in the framework document on the relations of the Secretary of State for Finance and Budgets and the Tax Agency with the Tax Agencies of the Autonomous Communities and the Cities with Statutes of Autonomy, approved at the meeting of the Mixed Commission for the Co-ordination of Tax Management on 22 October 2004 was consolidated. Said document can be consulted at www.agenciatributaria.es in the Autonomous Communities section. In this way, once again, the Autonomous Communities and Cities with Statutes of Autonomy took part in the Personal Income Tax and Wealth Tax campaigns. With regard to periodic exchanges of information, these were monitored at meetings of the Mixed Commission, and the Tax Agency has complied with all requests for information relating to the management of taxes assigned by the Tax Administrations of the Autonomous Communities in compliance with the commitment to transparency.
In 2006, the Autonomous Communities and Cities with Statutes of Autonomy took part in the Tax Agency's planning, contributing to the
17
REPORT
2006
I.THE TAX AGENCY
7. ALLIANCES. INSTITUTIONAL RELATIONS
Statistical information is supplied to the Autonomous Communities relating to Income Tax, Wealth Tax, the Special Tax on Certain Means of Transport and the Tax on Retail Sale of Certain Hydrocarbons. In addition, with regard to Income Tax, a sample of the tax and various simulations of the effects of the reform of Income Tax on the Autonomous Communities were provided. The appropriate protocols were followed in each case in order to meet requests for "personalised" statistical information and for the carrying out of simulations. The periodic supply of information by electronic means on the tax roll (monthly), the list of deaths (quarterly), payments of Wealth Tax outside the period decreed (fortnightly) and the business tax roll also continued. The Tax Agency sends information electronically to the Autonomous Communities on the Wealth Tax returns which it manages, and they in turn send information on Inheritance and Donations Tax and on Transfer Tax and Stamp Duty to the Tax Agency. Finally, the information available to the Autonomous Communities is complemented by that which is published, with general access, on the Tax Agency website, (www.agenciatributaria.es), in the taxation statistics section. With regard to the controlling of autonomous community deductions for Income Tax, a new information form has been made available to the Autonomous Communities which enables them to provide the Tax Agency with the information it needs to control the deductions that they approve under the powers vested in them. With regard to the tax roll, the Autonomous Community Tax Authorities and the Tax Agency
18
have started the process of creating a joint roll. As a result, the Autonomous Communities send the Tax Agency the tax roll information which they have, and the Tax Agency validates this and incorporates the information that it did not have into its database; it then sends another file to the Autonomous Communities containing the information in the Agency's database. With regard to collection, new agreements were signed for enforced collection between the Tax Agency and the Autonomous Communities which have been applied since October 2006. A standardised electronic procedure has also been developed for attachment of budgetary payments. In the field of audit, the Tax Agency carries out direct audit activity with regard to Wealth Tax, the management of which is shared, in addition to other actions contained in the Tax Agency's Control Plan for taxes assigned. In addition, work was done on the development of an electronic tool for risk selection, which has been offered to the Autonomous Communities for the control of the taxes assigned to them. The Autonomous Communities have also been supplied with cross-referenced information related to Wealth Tax, in order to control this tax, and information on deaths for the control of Inheritance and Donations Tax. With regard to co-official languages, advances were made in the use of other languages alongside Spanish in the geographic areas in which they are recognised. A linguistic unit has been created for the co-ordination and validation of the Tax Agency's linguistic policy. The Tax Agency website can now be used in Catalan, Valencian and Galician and the content is in the process of being translated.
REPORT
2006
I.THE TAX AGENCY
7. ALLIANCES. INSTITUTIONAL RELATIONS
7.1.2 Relationship between the Tax Agency and Tax Administrations under special (Foral) regime. Co-operation relationships between the Tax Agency and Local Tax Administrations under special (Foral) regime received an important boost with the signing of agreements with the Basque Country (18 May) and Navarre (15 June) 2006. These agreements contain the conclusions of the various technical working groups set up. The content of the agreements is as follows: An amicable process has been established for changes of tax address. A procedure has been agreed for cases of payment of taxes to the wrong authority, and for undue tax payments, together with coordination rules which favour good communication between administrative units of the different Authorities. Standards for distribution between the various competent Tax Authorities of the results of issues relating to joint taxation have been established and are now being applied by the Authorities involved. A joint strategy has been adopted for the prevention, detection in its early stages and suppression of organised intracommunity VAT fraud, which includes the differentiated areas of prevention, detection of fraud in its early stages and suppression of fraud already committed. An electronic attachment process for tax refunds has been established by the Tax Agency and Tax Authorities in Navarre.
Aside from these activities carried out in the development of the agreements mentioned above, the current form for analysing ways of fostering the exchange of information have been analysed so as to introduce improvements in the application of the tax systems. 7.2. Local Entities. The Tax Agency is continuing to promote institutional co-operation with local entities in the scope of the supply and exchange of information and in collection, without prejudice to the co-operation activities within the scope of the Business Tax. To this end, in 2006, co-operation and the exchange of information between the Tax Agency and Local Entities continued to be promoted based on the co-operation Protocol and Agreements signed on 15 April 2003 with the Spanish Federation of Municipalities and Provinces. These agreements are: A co-operation agreement relating to the exchange of taxation and collection management information. A co-operation agreement relating to the supply of taxation information to Local Entities. A co-operation agreement for the enforced collection of taxes for the Local Entities by the Tax Agency. A co-operation agreement relating to the electronic filing of tax returns and communications related to Income Tax on behalf of third parties.
19
REPORT
2006
I.THE TAX AGENCY
7. ALLIANCES. INSTITUTIONAL RELATIONS
In addition, on 13 December 2006, an Addendum to the co-operation agreement on the exchange of information and co-operation in collection management was signed. This Addendum extends the procedure of attachment of tax refunds by the Agency for debts with local entities, which had previously only been enabled for taxation debts, to any debt with the public sector, whether related to taxation or not. 7.3. Co-operation agreements. 7.3.1. Social Co-operation. Social co-operation for the prevention of taxation fraud In 2005, the Tax Fraud Prevention Plan was approved to encourage social co-operation in the prevention of tax fraud, encouraging the detection and suppression of fraudulent activity which affects economic competence. This plan promotes the establishment of corporate and associated co-operation mechanisms between the Tax Agency and entities representing different economic sectors, and these have led to the signing of Memorandums of Understanding (MOU). These Memorandums of Understanding enable the sector to transmit information to the Tax Agency about its general functioning and about operations suspected to be fraudulent (particularly those related to VAT) and in general to co-operate in the fight against fraud, as they establish a direct and permanent communication channel between the Tax Agency and associations representing the sectors at risk of fraud.
20
In 2006, Memorandums of Understanding were signed with the National Association of Business Centres (ACN), the Consumers' and Users' Organisation (OCU) and the Spanish Spirit Drinks Federation (FEBE), in addition to the Memorandums signed the previous year. Social co-operation for the application of taxation: co-operation agreements for the electronic filing of tax returns, communications and other taxation documents A significant proportion of all tax returns made by electronic means are filed on behalf of third parties by "social collaborators" who provide the advantages of new technology to people who do not have access to the Internet. Through the signing of social co-operation agreements in the application of taxation, the Tax Agency authorises certain entities - public authorities, financial institutions, associations and professional bodies - or their members, to carry out procedures, such as the filing of tax returns, lodging appeals for reversal etc., by electronic means on behalf of third parties. In 2006, a total of 14,032,351 tax returns were filed on behalf of third parties by social collaborators. The co-operation agreements signed up to 31 December 2006 by the various types of entities were:
REPORT
I.-
2006
THE TAX AGENCY
7. ALLIANCES. INSTITUTIONAL RELATIONS
COOPERATION AGREEMENTS FOR THE ELECTRONIC PRESENTATION OF TAX RETURNS
Type of entity
To 2004
2005
2006
Total
Professional Tax Management Associations and Colleges
213
10
18
241
Membership protocols
110
4
3
117
Other entities (business associations, cooperatives, other colleges, etc.)
157
56
38
251
Membership protocols
21
17
13
51
Financial institutions
116
1
3
120
Autonomous Communities
16
—
—
16
Councils and other Public Bodies
84
1
—
85
Membership protocols for the Agreement Framework with Federation of Municipalities and Provinces (FEMP)
113
25
20
158
Companies (exclusively for the presentation of Income Tax returns for employees)
10
—
—
10
Private entities (groups of companies)
—
—
3
3
Automobile Concession Associations
1
15
20
36
Total Agreements
597
83
82
762
Total Protocols
244
46
36
326
TOTAL (Agreements and Protocols)
841
129
118
1.088
7.3.2. Other co-operation Agreements. Assistance for disabled persons. Agreement with CERMI (Spanish Committee for Representatives of Persons with Disabilities) – ONCE (National Organisation for the Blind) Continuing with the policy of earlier years, the Commission for Monitoring the Co-operation Agreement between the Tax Agency and the Committee for Representatives of Persons with Disabilities (CERMI) and the ONCE (National Organisation for the Blind) approved the Action Plan for Assistance to Persons with Disabilities for 2006, which included the following main activities to be carried out: extension of work to
improve accessibility to other Tax Agency buildings; improvements to website accessibility; specific services for persons with disabilities during the Income Tax Return period; electronic filing of tax returns and training activities for Agency staff (sign language). Agreement with the Institute for Fiscal Studies The co-operation between the Tax Agency and the Institute for Fiscal Studies for the development of a civic-taxation education programme continued in 2006 in the framework of the General Co-operation Protocol signed by the two institutions in April 2005.
21
REPORT
2006
I.THE TAX AGENCY
7. ALLIANCES. INSTITUTIONAL RELATIONS
This agreement includes a specific plan of joint actions renewed on an annual basis. In 2006, collaboration was focused on monitoring and evaluation of the plan for civic-taxation education, fundamentally for the Internet Portal for Civic-Taxation Education, and for organising courses for training school teachers in this subject. Agreement with the National Council of Chambers of Commerce In 2006, the Co-operation Framework Agreement was maintained between the Tax Agency and the National Council of the Chambers of Commerce for disseminating statistical information on External Trade. Agreement with the Spanish Institute for Foreign Trade In 2006, the Co-operation Agreement signed the previous year between the Tax Agency and the Spanish Institute for Overseas Trade was the framework for the exchange of information for statistical and tax purposes, with the aim of fulfilling the functions of promoting, supporting and fostering of Overseas Trade. Agreements for the Prevention of Fraud of Special Tax on certain Means of Transport (IEDMT). In order to put into effect the measures contained under the Tax Fraud Prevention Plan, and specifically those applying to the fight against organised fraud in respect of the Special Tax on certain Means of Transport (IEDMT), the following Co-operation Agreements were signed in 2006: On 27 February 2006, a Protocol for action was agreed between the Tax Agency and the National Traffic Department to check adherence to tax obligations relating to vehicle registration and the fight against tax fraud.
22
On 24 March 2006, an Agreement was signed with the Directorate General of the Merchant Navy for the supply of information and direct access to the databases held by the Directorate General's Ships and Shipping Companies Register. On 16 May 2006, an Agreement was signed with the Directorate General of Civil Aviation for the supply of information contained in the Aircraft Registration Numbers Register. 7.4. International Relations At the end of 2004, a Resolution issued by the President of the Tax Agency on 26 December 2004 authorised the creation of the Unit for the Co-ordination of International Relations. The Resolution states that the Working Group, temporarily created for this purpose in 1997, had fulfilled its mission and that a specific organic unit was required to ensure the co-ordination of the Tax Agency's international activities. The Resolution integrates the Unit in the Organisation, Planning and Institutional Relations Department and assigns it the functions of developing and co-ordinating the Agency's relations with international organisations and institutions which are not specifically within the remit of other bodies. With the collaboration of all its Departments and Delegations, the Agency's international presence was strengthened in 2006, owing to the participation of its experts in various international institutions and organisations, providing technical assistance, giving courses and receiving numerous visits from foreign delegations.
REPORT
I.-
2006
THE TAX AGENCY
7. ALLIANCES. INSTITUTIONAL RELATIONS
7.4.1. Technical Co-operation European Union Relations with the European Union have been ongoing both in terms of customs and in matters of internal taxation. The Tax Agency has participated and provided information on aspects with operational impact on the processes related to development of legislation and Guidelines for tax harmonisation within the European Union Council Working Groups. The Tax Agency takes part in various European Commission Advisory Committees on matters of
taxation and customs, as consultants to both Regulatory and Management Committees. It also takes part in various working groups on specific issues. Fiscalis Programme The Tax Agency manages Spanish participation in the European Union FISCALIS Programme, which aims to foster co-operation between the Tax Agencies through joint actions. The following table summarises Spanish participation in the different types of activities.
FISCALIS PROGRAM. SUMMARY OF ACTIVITY (1998-2006) 1998
1999
2000
2001
2002
2003
2004
2005
2006 TOTAL
40 37
32 27
40 32
29 29
39 41
32 36
33 44
32 37
33 34
310 317
7
9 2
11 1
14
9 2
5 1
16
14 1
16
101 7
71
11
21
41
16
16
15
16
108
5
4
8
4
7
5
7
7
51
8
8
EXCHANGES Civil Servants sent by the Agency Civil Servants received by the Agency SEMINARS Organised by other administrative bodies Organised by the Tax Agency SUBTOTAL MULTILATERAL CONTROL PROJECT GROUPS
Customs 2007 Programme Parallel to the Fiscalis Programme, the Department of Customs and Excises has collaborated actively in the European Commission's Customs 2007 co-operation programme, carrying out 9 exchanges of staff members and taking part in 6 seminars. OECD
4
In 2006, the Tax Agency took part in the 17th and 18th meetings of the FTA Bureau that took place in Paris in January and in Seoul in September, respectively. The Tax Agency was also represented at the 3rd meeting of the FTA, also in Seoul, on 14 and 15 September, out of which came the approval of an agreement (known as the "Seoul Declaration") which will have far-reaching implications for taxation.
The Tax Agency is part of the OECD Forum on Tax Administration Management Bureau , as well as of the various Working Groups.
23
REPORT
2006
I.THE TAX AGENCY
7. ALLIANCES INSTITUTIONAL RELATIONS
Spain was also represented by experts from the Tax Agency at various seminars organised by the OECD in 2006, occasionally with other Institutions such as the CIAT. IOTA The Tax Agency was accepted as a member of the Intra-European Organisation of Tax Administrations (IOTA) at its 2005 General Meeting, effective from 1 January 2006, thus strengthening its existing collaboration as an associate institution. In 2006, the Tax Agency was represented in the various Working Groups and Seminars, as well as at the 8th Forum of "Main Contact Persons" and at the 10th IOTA General Meeting that took place in Budapest in March and May respectively. The Agency also took an active part in the Technical Consulting Service, the aim of which is to obtain practical information from different Member States. COUNTRIES IN CENTRAL AND EASTERN EUROPE The Agency is one of the Spanish Administration institutions which works actively to get the best results from European Union enlargement. Within the framework of the PHARE programme, the European Commission promotes twinning agreements with new Member States and candidate member countries. In 2006, the Tax Agency took part in the following twinning agreements: Romania • Simplified Customs Procedures and Border Control.
24
• Harmonisation of Tax Legislation and Strengthening of Tax Administration. • The Tax Agency has also won the twinning agreement RO/06/IF/FI/02 for the "Development of a Customs Laboratories Network", planned for 2007. Estonia: Implementation of the Customs "acquis communautaire" Bulgaria: Implementation of the INTRASTAT System. Croatia: Strengthening Laboratories System.
the
Customs
Hungary: The Tax Agency has been awarded two Twinnings planned to take place in 2007. Their topics are “EU Practice in the area of Special Tax Control and Regulations for the use of Biofuels and other Renewable Energy for Transport" and "Customs Auditing". In 2006, seven civil servants from the Tax Agency collaborated in the European Union CAFAO programme in the Balkans. LATIN AMERICA Latin America is undoubtedly the area in which Spanish collaboration is greatest. It is an especially relevant region with which there is a clear commitment to co-operation and institutional support, channelled in this case through the respective Tax Agencies.
REPORT
2006
I.THE TAX AGENCY
7. ALLIANCES INSTITUTIONAL RELATIONS
Throughout 2006, 46 technical assistance missions were carried out in 10 countries, formalised under bilateral or multilateral agreements with other institutions such as the Spanish Co-operation Agency (AECI), the InterAmerican Development Bank (IDB), the InterAmerican Centre for Tax Administration (CIAT), the International Monetary Fund (IMF), etc. During 2006, the first phase of the EU-funded FIGARI project for modernising the National Tax
Department in Uruguay was completed. It is due to continue in 2007 with the collaboration of the International Foundation for the Public Policies and Administration of Ibero-America (FIIAPP). Also worth mentioning here is the Customs Cooperation Project between the EU and MERCOSUR, in which a number of civil servants from the Customs and Special Tax Department have participated.
TECHNICAL ASSISTANCE 2006 COUNTRY
NUMBER OF MISSIONS
Dominican Republic
4
Mexico
1
Honduras
1
Costa Rica
1
Argentina
12
Brazil
2
Guatemala
1
Columbia
2
Peru
1
Uruguay
21
TOTAL
46
The relationship with the Inter-American Centre of Tax Administrations (CIAT) is also worth highlighting. This collaboration covers a number of aspects: publications, courses and technical assistance for various countries, regional projects, dissemination of best practice, monograph competition, research scholarships, etc. In addition, the Agency has participated in several CIAT Working Groups such as those examining "Code of Conduct and Promotion of Ethics", "Internal Control", "Exchange of Information" and "Updating the
CIAT Tax Code Model". The Tax Agency also attended the 40th CIAT General Meeting that took place in Brazil between 3 and 6 April. However, the most important event this year was the 54th CIAT Technical Conference, organised by the Tax Agency with the theme of "AN INTEGRATED APPROACH IN PREVENTING AND COMBATING TAX EVASION", which took place in Madrid from 23 to 26 October and was attended by 155 delegates from 43 countries and 9 international organisations.
25
REPORT
2006
I.THE TAX AGENCY
7. ALLIANCES INSTITUTIONAL RELATIONS
Also in 2006, the Agency collaborated in the EUROsociAL Project, launched in 2005 by the European Commission to improve social cohesion in Latin American societies and helping leaders to draw up, approve and manage public policy. The Project, within the area of taxation, is carried out by an international consortium of 10 institutions, led by the Spanish Institute for Fiscal Studies. The Tax Agency's role has focused on holding three courses in the Institute for Fiscal Studies ("Strategies for fostering voluntary fulfilment of obligations: Telephone assistance services and criteria unification programmes", "New Technology in the Area of Taxation" and "Roll Creation and Maintenance, Micro-business Tax, The Fight against the Black Economy and Mass Control") and organising a "Familiarisation Visit" for Brazilian civil servants.
On 24 October, the Agreement for a Transfrontier Mechanism for Exchange of Tax Information was signed in Madrid. 3. Co-operation Spain-the Netherlands On 11 April 2006, an Agreement was signed in Amsterdam by the competent authorities of the Netherlands and Spain for developing and strengthening mutual assistance in tax matters. 4. Co-operation Spain-France-Italy-Portugal Finally, in the area of the EU, a meeting was held in Madrid on 19 May between the National Directors of the Tax Agencies in France, Italy, Portugal and Spain, at which the creation of a European Tax Unit was discussed, a topic which is the subject of much debate in the Commission. B) American Countries
BILATERAL RELATIONS A) European Union Countries 1. Co-operation Spain-France A permanent Co-operation framework has been established with France, as a result of which several meetings and discussions have been held with civil servants from the French Administration. 2. Co-operation Spain-Portugal Throughout 2006 a number of meetings have been held between the two Tax Administrations, including the official visit in February by the National Director of the Tax Agency to the Portuguese Finance Minister. Three meetings have been held between official representatives of the DGCI and the Tax Agency within the framework of the Agreement in matters of Mutual Administrative Assistance between the two countries, signed in September 2004, . In April, two meetings were held (one in Evora and another in Pontevedra), with the third taking place in May in Madrid.
26
The relationship with Latin American countries was highlighted by training and technical cooperation activities. It is also worth mentioning that on 3 April in Florianopolis (Brazil), during the CIAT General Assembly, the Administrative Agreement between the Spanish and Chilean authorities was signed, regarding the exchange of information and mutual assistance. C) Rest of the World On 28 November, in Nador the IV Conference of Spain / Morocco Customs Co-operation took place, which culminated the transfrontier cooperation that took place under the auspices of the Interreg III programme. We should also highlight that in 2006 a civil servant from the Tax Agency took part in the Near East Institutional Strengthening Project, organised by the FIIAPP. Finally, bilateral relations have been initiated with Morocco, Malaysia, Russia, China, Syria,
REPORT
I.-
2006
THE TAX AGENCY
7. ALLIANCES. INSTITUTIONAL RELATIONS
etc., countries from which several delegations have visited. 7.4.2. Training Actions The Agency continued with its training actions aimed at foreign civil servants, basically from Latin American countries. The Agency and the IEF organise the traditional Course on Tax Institutions and Techniques and the Latin American Course on International Customs Techniques in Spain on an annual basis, which are attended by some 45 civil servants from the relevant Latin American Administrations. The XXVI and XXVIII edition took place from 5 to 30 June 2006, respectively. The project “Study of Relevant and Current Cases of Tax Policy and Tax and Customs Administration" undertaken by the Agency in collaboration with the IDB, aims to share practices that are representative because of their importance or interest. The project is financed by the IDB and two meetings were held in 2006: “Co-operation between Tax Administrations in Processes of Economic Integration" and "Computing Tools for Tax Support".
America on "Key Aspects of Customs Management in Processes of Territorial Integration", "Legal Services" and "Planning and Control of Tax Administration". International Master in Tax Administration and Public Finance (AEAT-IEF-AECI-UNEDCIAT-World Bank) In 2006, the 2nd Edition of the Masters (20042006) ended with the 2nd Meeting in Madrid. In connection with the 3rd Edition (2005-2007), the 1st Meeting took place in July in the AECI centre in La Antigua. Likewise, the 4th Edition (2006-2008) began in October with a total of 30 students from different Latin American countries. 7.4.3. Exchange of Experiences with other Administrations Visits Received In 2006, in the various Departments and Special Delegations of the Tax Agency, 71 visits were made by foreign delegations from international organisations in a range of countries (European, American, Asian and African), who were interested in finding out about how the Agency works and taking our experience back to their environments.
Likewise, in collaboration with the AECI, another three seminars/workshops were held in Latin
VISITS FROM FOREIGN DELEGATIONS
1998
1999
2000
2001
2002
2003
2004
2005
2006 TOTAL
Latin America
8
5
5
14
12
15
17
13
26
115
Europe
4
8
10
12
18
21
33
34
33
173
Other*
1
1
6
3
2
9
9
9
12
52
TOTAL
13
14
21
29
32
45
59
56
71
340
GEOGRAPHIC AREAS
* Also included in this section are visits by institutions and international organisations such as IMF, OLAF, etc.
27
REPORT
2006
I.THE TAX AGENCY
8. ACTION PLAN
Since its creation in 1992, the Tax Agency has given great importance to planning activities, using a system based on management by objectives specified each year in an Objectives Plan. To meet the guidelines contained in the Tax Fraud Prevention Plan, substantial changes were made in 2005 to the annual planning instruments used by the Tax Agency and which were configured in three basic documents: the Objectives Plan and the General Control Plan (in the area of taxation control), as basic planning instruments for the Special Delegations and the Central Delegation for Large Taxpayers, and the Central Services Commitments Document. The actions contained in the planning instruments are aimed at developing and fulfilling the various organisational, regulatory and procedural measures in the Tax Fraud Prevention Plan and are framed within the Tax Agency's new strategic lines of action in the fight against fraud contained in this document. The experience gained from the 2005 financial year in the application of the new planning system contributed to improving the efficiency of the fight against fraud. Therefore, in 2006 this experience has been maintained and consolidated, thereby ensuring the continuity of its principles, characteristics, objectives and indicators, although the necessary changes will be made to adapt it to any new organisational, regulatory and procedural measures. To this end, the Central Delegation of Large Taxpayers, created by Order of the Ministry for Economy and Finance on 13 October 2005, has taken over, as effective from 1 January 2006, the functions previously carried out by the National offices for Audit, Customs and Tax Collection, which have been abolished. The integration in the Central Delegation of the functions of assistance and tax control for taxpayers with a greater volume of operations
28
has meant that in 2006 a number of organisational and procedural adjustments have been made, which have had repercussions on planning instruments. 8.1. Planning and Programme of Actions for 2006 8.1.1. Objectives Plan 2006 The Objectives Plan for the Special Delegations and the Central Delegation for Large Taxpayers includes the results to be achieved during the financial year and the priority actions that must be carried out in order to achieve these results in their dual function of assistance to the taxpayer and the fight against fraud. With the aim of ensuring continuity to the strategic lines defined in the Tax Fraud Prevention Plan, the Objectives Plan 2006 maintains the same structure of the previous year's document and is divided into two blocks, results and actions, although some new ways of measuring certain objectives have been incorporated: Results. Includes only the gross and net tax collection, as well as the effect on collection of the control actions, both on income from these actions, the majority of which are included in the calculation rules under Section 103. Five b) of Act 31/1990, and on the amount of reductions in refunds. General and Priority Actions. These contribute directly to achieving results and are detailed in the following paragraphs: Assistance to taxpayers, with the indicators that are aimed at strengthening improvements in the service given to taxpayers and at fostering voluntary fulfilment of tax obligations, such as electronic filing of returns and self-assessments, speeding up average appeal processing times and decision making,
REPORT
2006
I.THE TAX AGENCY
8. ACTION PLAN
and certificates issued electronically in order to avoid citizens having to go personally to the Tax Agency's Offices. Actions of the fight against fraud, defined as actions to be carried out in each area of control or activity, synthesising or recording the most relevant control actions in one indicator. Since the Tax Agency, in the exercise of its controlling functions, carries out different kinds of actions of varying complexity, etc. that cannot be compared or be considered together, the objectives for the fight against fraud are defined in terms of equivalent or homogeneous actions. In addition, in order to evaluate the degree of execution or fulfilment of the objective and the quality of work carried out, various adjustment factors are used according to the type of actions, the business volume, the debt paid, the general or specific nature of the action and the number of financial years to be checked, etc. The instrumental nature of the objectives established in terms of actions assume that these will have to be changed in order that they can be adapted to the changing
economic situation and to the new types of fraud, draw new lines of work for the Organisation, or to improve the way the actions are assessed, as well as other issues. Thus, for example, in the 2006 planning exercise it was considered appropriate to introduce new weighting coefficients into the control actions on internal taxes, such as the business volume of the checked taxpayer, the general or specific nature of the action and the number of financial years to be checked. However, this causes problems for the interyearly checks on objectives in terms of actions. In view of this, in order to ensure the statistical coherence of the data and its compatibility, the objectives have been monitored based on 2005, following the criteria of the 2006 General State Budgets established in the indicators included in the Report of Objectives of programme 932 A "Application of the State Tax System". The results obtained in the Objectives Plan for 2006 were higher than anticipated for that financial year over all the first level indicators, as illustrated below:
29
I.-
REPORT
2006
THE TAX AGENCY
8. ACTION PLAN
TAX AGENCY OBJECTIVES PLAN 2006
OBJECTIVE
TARGET
% CARRIED OUT FULMILMENT
I. RESULTS 1. Gross collection 2. Net collections 3. Direct collection effect 3.1. Revenue from the Agency’s control activities 3.2. Reduction of Refunds
203,632,000 165,316,000 4,544,088 3,560,496 983,591
221,414,737 179,380,390 5,309,633 4,182,645 1,126,989
108,73 108,51 116,85 117,47 114,58
II. ACTIVITIES II.1. Assistance to the Taxpayer 4.1. Average time for processing appeals and complaints (days) 4.2. Submission of Tax Returns by electronic means and telephone (%) 4.3. Certificates avoiding the need for visits (%)
40,00
31,00
129,03
25,50
28,33
111,10
68,80
75,94
110,38
93,731
116,651
124,45
9,615
10,526
109,47
7. Real Estate Investigation Activities
44,725
46,402
103,75
8. Activities related to fraud and false invoices
13,984
16,120
115,27
9. Customs and taxation surveillance activities
47,139
64,670
137,19
3,304,684
4,210,445
127,41
105,108
147,022
139,88
1,722,275
1,995,416
115,86
8,096,524
8,544,450
II.2. Anti-fraud activities Selective Control and Investigation Activities* 5. Audit Activities on domestic taxation 6. Customs and Excises Audit Inspection Activities
Extensive Control Activities** 10. Extensive control of domestic taxes and small business activity 11. Extensive control activities for large companies 12. Customs and excises taxes management activities Collection Management Activities 13. Debt Collection Management** Amounts in millions of Euros. * Homogeneous actions based on 2005. ** The amounts are expressed in nominal terms.
30
105,53
REPORT
2006
I.THE TAX AGENCY
8. ACTION PLAN
8.1.2. General Plan for Tax Control 2006 The General Plan for Tax Control, which is confidential except in respect of the General Regulations that govern it, details the actions carried out annually in each of the areas that are responsible for tax and customs control, with a breakdown of territories and programmes of action. The Official State Bulletin (BOE) of 3 February 2006 published the General Regulations for the General Plan for Tax Control, approved by Order of the General Director of the Tax Agency on 27 January. The General Regulations outline the principal lines to be followed by tax and customs control, and establish the areas of tax and customs risk in which the efforts of the fight against fraud are to be concentrated. The Plan is structured in three broad sections: General Regulations; Partial Tax Control Plans, corresponding to the areas of Financial and Tax Audit, Customs and Excises Taxes, Tax management and Collection; and Plan Integration Regulations, containing the rules and procedures that govern collaboration and coordination actions between the areas. The Plan Integration Regulations also include coordinated planning, in areas of assigned taxes, with the Autonomous Communities.
8.1.3. Commitments of Central Services for 2006 The Commitments of Central Services include the objectives of the Departments and Services of the Tax Agency with the various members of the organisation (both central and regional), with other Administrations and Institutions and with the citizens. In agreement with the Agency's other planning documents, this document sets out the specific commitments made by Central Services, which detail the strategies and priorities contained in the Fraud Prevention Plan, together with others related to the Tax Agency's basic strategic lines of action, such as information and assistance to taxpayers and tax control which, although not expressly covered by the Plan, some are nevertheless required for its effective application. In addition, various commitments related to management issues are also detailed, such as human, material and computing resources, relations with other national and international Agencies, etc.
31
R E P O R T
2006
II.- Summary of Operations
33
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
Gross Tax Collection 2006 The total gross Collection managed by the Tax Agency in 2006 was 221,414 million Euro compared to 196,838 million in the previous financial year, an increase of 17,782 million over the Budget figure. This is a variation of 12.5%, the largest reached in the last nine years; this figure stood at 12.2% in 2005. In net terms this is reduced to 11.6%, an increase of almost 4 points on the nominal GDP (7.8%), although this is a slowing down compared to 2005 (14.1%, the greatest growth since 1989). The lower net growth is justified by the dynamic nature of refunds, which increased in 2006 by 16.4%.
The notable increase in taxes collected is partly due to the dynamic nature of work, capital and investment funds withholdings, as well as payments on account of Corporation Tax, which reflect the favourable situation of family income and business profits in 2006. This growth is also due to the positive evolution of VAT collection and to greater payments of Income Tax and Corporation Tax differential quotas in the 2005 financial year, as well as the different periods during which certain Public Administrations paid their employment withholdings. The gross tax collection for 2006, in terms of the main tax figures, is contained in the following tables, which show the collections carried out and the homogeneous figures for the purposes of analysis.
TOTAL GROSS TAX COLLECTION PERIOD JANUARY-DECEMBER DIFFERENCE TO BUDGET CONCEPTS
Personal Income Tax CORPORATION TAX Non-Resident Income Tax Rest of Chapter I Total Chapter I Value Added Tax Exicses Foreign Trade Tax on Insurance Premiums Rest of Chapter II Total Chapter II Total Chapter III and Others TOTAL REVENUE MANAGED
DIFFERENCE TO 2005
BUDGET 2006 (1)
COLLECTION 2006 (2)
COLLECTION 2005 (3)
DIFFERENCE (4)=(2)-(1)
% (5)=(2)/(1)
DIFFERENCE (6)=(2)-(3)
% (7)=(2)/(3)
69,584
73,577
65,091
3,993
105.7
8,486
13.0
34,926
41,882
35,979
6,956
119.9
5,903
16.4
2,356
2,480
2,313
124
105.3
167
7.2
55
79
64
24
143.6
15
23.4
106,921
118,018
103,447
11,097
110.4
14,571
14.1
72,770
79,722
70,814
6,952
109.6
8,908
12.6
19,528
18,992
18,262
-536
97.3
730
4.0
1,506
1,605
1,466
99
106.6
139
9.5
1,433
1,388
1,314
-45
96.9
74
5.6
34
30
42
-4
88.2
-12
-28.6
95,271
101,737
91,898
6,466
106.8
9,839
10.7
1,440
1,659
1,493
219
115.2
166
11.1
203,632
221,414
196,838
17,782
108.7
24,576
12.5
Amounts in millions of Euros. Shows the total collected before discounting the participation of the Regional Administrations - Autonomous Communities and Local Corporations.
34
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
TOTAL GROSS TAX COLLECTION BROKEN DOWN BY STATE AND AUTONOMOUS REGION COLLECTION JANUARY-DECEMBER 2006
DIFFERENCE TO BUDGET CONCEPTS
Personal Income Tax CORPORATION TAX Non-Resident Income Tax Rest of Chapter I Total Chapter I Value Added Tax Excises Foreign Trade Tax on Insurance Premiums Rest of Chapter II Total Chapter II Total Chapter III and Others TOTAL REVENUE MANAGED BY THE TAX AGENCY
STATE(1) PARTICIPATION TOTAL TAX AGENCIES (2) (3)=(1)+(2)
COLLECTION JANUARY-DECEMBER 2005
STATE (1) PARTICIPATION TOTAL STATE (1) PARTICIPATION TOTAL TAX AGENCIES (2) (3)=(1)+(2) TAX AGENCIES (2) (4)=(1)+(2)+(3)
49,040
20,544
69,584
52,259
21,318
73,577
46,321
18,770
65,091
34,926
0
34,926
41,882
0
41,882
35,979
0
35,979
2,356
0
2,356
2,480
0
2,480
2,313
0
2,313
55
0
55
79
0
79
64
0
64
86,377
20,544
106,921
96,700
21,318
118,018
84,677
18,770
103,447
54,163
18,607
72,770
60,494
19,228
79,722
52,953
17,861
70,814
11,141
8,387
19,528
10,285
8,707
18,992
10,035
8,227
18,262
1,506
0
1,506
1,605
0
1,605
1,466
0
1,466
1,433
0
1,433
1,388
0
1,388
1,314
0
1,314
34
0
34
30
0
30
42
0
42
68,277
26,994
95,271
73,802
27,935
101,737
65,810
26,088
91,898
1,440
0
1,440
1,659
0
1,659
1,493
0
1,493
156,094
47,538
203,632
172,161
49,253
221,414
151,980
44,858
196,838
Amounts in millions of Euros. Breakdown of the total income between State and Regional Administrations.
The difference of 24,576 million on 2005 is the result of several opposing factors, the most positive of which are the increased gross payments from employment withholdings (tax deducted at source) (5,735 million, 1,024 million of which come from the Public Administrations), from capital withholdings (1,144 million), from Income Tax differential quota (1,463 million), from Corporation Tax, both from payments in instalments (3,133 million) and from differential quota (2,306 million), from Value Added Tax (8,908 million) and from Excises (730 million). Tax collections obtained in 2006, compared to that achieved in the previous year, for Personal Income Taxes (IRPF), Corporation Tax (IS), Nonresidents Income Tax (IRNR), Value Added Tax (IVA), Excises (IIEE) and Chapter III Income, is detailed in the following sections:
1.1. Personal Income Tax The total gross collection in 2006 shows a rate of variation of 13.0%, for the reasons commented below. Income from wages and salaries Withholdings grew by 11.3%, influenced by the strength of private sector withholdings and updates in the pension scheme. Having eliminated the income from the Public Administrations, income from large companies and SMEs increased by 11.8%, being 11.1% for large companies and 13.0% for SMEs. Salaried employees registered with Social Security closed the year with a growth rate of 4.7% before correction of the normalising effect of immigrants, in line with that of 2005, whilst registered unemployment showed a drop of 1.5% in 2006. The positive performance of employment and the increase in the average salary (4.6%) justify the upturn in the salary mass (9.5%) and the extensive growth of withholdings.
35
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
GROSS INCOME TAX PERIOD JANUARY-DECEMBER DIFFERENCE TO BUDGET CONCEPTS
COLLECTION 2006 (1)
DIFFERENCE TO 2005
COLLECTION 2006 (2)
COLLECTION 2005 (3)
DIFFERENCE (4)=(2)-(1)
% (5)=(2)/(1)
DIFFERENCE (6)=(2)-(3)
% (7)=(2)/(3)
Withholdings on wages and professional activities Withholdings on rental income Withholdings from investment funds Withholdings on capital gains Payment in instalments for business, professional and artistic activities Gross difference in tax payable (before AA,TT, participation)- annual return
54,738
56,642
50,907
1,904
103,5
5,735
11.3
1,440
1,453
1,316
13
100,9
137
10.4
461
529
360
68
114,8
169
46.9
2,962
3,323
2,496
361
112,2
827
33.1
3,128
3,170
3,015
42
101,3
155
5.1
6,855
8,460
6,997
1,605
123,4
1,463
20.9
INCOME TAX - TOTAL REVENUE
69,584
73,577
65,091
3,993
105,7
8,486
13.0
Amounts in millions of Euros.
In general terms, in those subconcepts (withholdings) where income was accounted for over more than one tax (IRPF, IS and IRNR), an analysis is presented below for that group of taxes and is included in this section: The total income from withholdings on rental income was 194 million greater than expected, showing a growth rate of 10.4% over the previous year (9.8% in 2005). Total income from Withholdings on Investment Funds grew to 754 million, with a growth rate of 47.0% in 2006 compared to 34.9% in 2005, owing to the strong growth in capital appreciation in the Funds. Total income from Withholdings on Capital was 6,690 million, a growth of 20.5%, owing to greater dividends distributed and to the increase in interest paid into bank accounts. Income from Income Tax payments in instalments grew by 5.1% compared to 4.5% in the previous year, influenced by the evolution of directly estimated income, which was 70% of this income at a rate of 6.3%. The gross Personal income tax due from annual return collected was 8,460 million. This figure shows the income relating to self-assessment
36
in the Personal Income Tax Return Period in the 2005 financial year, which stood at 7,747 million, with an increase of 23.1% compared to 2004, a rate associated partly to strong capital gains not subject to withholdings (mainly shares and property). The refund amounts in this Campaign increased by 6.0%. 1.2. Corporation Tax The total income in gross terms showed a growth rate of 16.4% in 2006. Income from payments in instalments, around 52% of the gross income in this area, registered a growth of 16.6%, a slower growth than the previous years, owing to the slowing of growth related to tax groups (40.8% in 2005 to 17.5% in 2006). For the remaining organisations, the growth rate was 15.7% (12.2% in 2005), which confirms the strength of company results in 2006, as, according to data from the National Securities Market Commission, profits for listed companies over the first nine months of 2006 grew by 25.4%, although the application of non-accounting adjustments, deductions and refunds reduced the growth of the declared taxable base to 18.6%.
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
Income for Differential Amount shows basically the income from self-assessment in the 2005 financial year, which was 14,809 million, with a variation rate of 13.6%, 1.6% of which was for tax groups (as a consequence of the strong
increase in payments on account carried out in 2005 discounted from this statement and the rate for which was 40.8%), whilst 16.0% was for the remaining organisations.
GROSS TAX REVENUE FROM CORPORATION TAX PERIOD JANUARY-DECEMBER DIFFERENCE TO BUDGET CONCEPTS
Withholdings for rental Withholdings from investment funds Withholdings on capital gains Payments in instalments Gross differential in tax payable- annual return TOTAL CORPORATION TAX
BUDGET 2006 (1)
COLLECTION 2006 (2)
599
605
196
225
2,277
2,505
2,170
COLLECTION 2005 (3)
DIFFERENCE TO 2005
DIFFERENCE (4)=(2)-(1)
% (5)=(2)/(1)
DIFFERENCE (6)=(2)-(3)
% (7)=(2)/(3)
548
6
101.0
57
10.4
153
29
114.8
72
47.1
228
110.0
335
15.4
17,545
21,989
18,856
4,444
125.3
3,133
16.6
14,309
16,558
14,252
2,249
115.7
2,306
16.2
34,926
41,882
35,979
6,956
119.9
5,903
16.4
Amounts in millions of Euros.
1.3. Non-resident Income Tax The total income was 2,480 million, with a growth rate of 7.2% as a consequence of the deposits from withholdings and payments in instalments (90% of the amount), which grew by 9.6%. 1.4. Value Added Tax Gross total income for VAT in 2006, including income for imports from third countries and assimilated operations, showed a growth rate of 12.6%, the greatest since 2001, influenced by the positive evolution of final spending subject to VAT which maintained an upward trend in 2006 (9.6%, one point higher than in 2005), with
accelerated growth both in real terms and in the effect on prices, reflected in the collection amount. Income from VAT imports and assimilated operations showed a negative rate of 10.9% as a consequence of loss of VAT income from Assimilated Operations on imports, on entry into effect of Royal Decree 87/2005 of 1 May 2005 (in 2005 there was income from this area during the first four months, with no equivalent in 2006). For imports from third countries, the rate was 14.8%, in line with the growth of non-EU imports (13.6%), almost two points over growth in 2005, reflecting the dynamic nature of the economy throughout the year.
37
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
GROSS NON-RESIDENT INCOME TAX COLLECTED PERIOD JANUARY-DECEMBER DIFFERENCE TO BUDGET
DIFFERENCE TO 2005
BUDGET 2006 (1)
COLLECTION 2006 (2)
COLLECTION 2005 (3)
DIFFERENCE (4)=(2)-(1)
% (5)=(2)/(1)
DIFFERENCE (6)=(2)-(3)
Withholdings and Payments on account Gross differential in tax payable Tax on property
2,085
2,243
2,047
158
107,6
196
9,6
265
232
261
-33
87,5
-29
-11,1
6
5
5
-1
83,3
0
0,0
TOTAL NON-RESIDENT INCOME TAX
2,356
2,480
2,313
124
105,3
167
7,2
CONCEPTS
% (7)=(2)/(3)
Amounts in millions of Euros.
GROSS VALUE ADDED TAX COLLECTED PERIOD JANUARY-DECEMBER DIFFERENCE TO BUDGET CONCEPTS
Imports: - Imports - Other operations similar to imports Gross domestic transactions: - General and simplified regime - Large companies - Exporters - Other domestic transactions VAT - TOTAL REVENUE
DIFFERENCE TO 2005
BUDGET 2006 (1)
COLLECTION 2006 (2)
COLLECTION 2005 (3)
DIFFERENCE (4)=(2)-(1)
% (5)=(2)/(1)
DIFFERENCE (6)=(2)-(3)
% (7)=(2)/(3)
8.021
8.651
9.713
630
107.9
-1.062
-10.9
8.021
8.599
7.491
578
107.2
1.108
14.8
0
52
2.222
52
-
-2.170
-97.7
64.749
71.071
61.101
6.322
109.8
9.970
16.3
25.341
28.454
24.329
3.113
112.3
4.125
17.0
26.918
30.338
25.664
3.420
112.7
4.674
18.2
9.935
11.754
8.869
1.819
118.3
2.885
32.5
2.555
525
2.239
-2.030
-20.5
-1.714
-76.6
72.770
79.722
70.814
6.952
109.6
8.908
12.6
Amounts in millions of Euros.
Gross collections for internal operations, at a rate of 16.3%, partly reflects the recovery of income from assimilated operations for imports, as this income was not deducted in the monthly return-settlements of large companies and exporters (first four months of 2006 against the same period in 2005). The greater increase in gross family income and
38
the drive for families to seek loan financing was reflected in their consumer spending, in imports and in spending on housing (which once again showed a high growth in 2006 to 19.1%). Only the component for Public Administrations spending showed a loss of intensity compared to the previous year.
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
1.5. Excises Consumer goods subject to Excises maintained the moderate trend of the previous year, reflected also in their increase in income, at a growth rate of 4.0% compared to 2.9% in 2005. Hydrocarbon income showed a slight recovery (2.2%, 0.9% in 2005) owing to the stability of the cash rate (compared to the drop of 0.8 points registered in 2005) owing partly to lower consumption of bonus diesel, whilst those of the Tobacco Industry (3.9%, almost two points
down on 2005) have felt the impact of the drop in prices of the first months and the demotivating effect on tobacco consumption (3.1%) of the health measures and increase in tax introduced this year. 1.6. Duties and other revenues Total income was 1,659 million, with a rate of 11.1%, influenced by the income from the radiofrequency tax, income from which in 2006 included those made by one organisation over three financial years.
GROSS SPECIAL TAXES COLLECTED PERIOD JANUARY-DECEMBER DIFFERENCE TO BUDGET CONCEPTS
BUDGET 2006 (1)
COLLECTION 2006 (2)
1,049 291
% (5)=(2)/(1)
DIFFERENCE TO 2005
COLLECTION 2005 (3)
DIFFERENCE (4)=(2)-(1)
DIFFERENCE (6)=(2)-(3)
% (7)=(2)/(3)
1,026
972
-23
97.8
54
5.6
312
260
21
107.2
52
20.0
Alcoholic and similar drinks Beer Intermediate products Hydrocarbons Tobacco products Certain Means of Transport Electricity
21
21
19
0
100.0
2
10.5
10,749
10,472
10,246
-277
97.4
226
2.2
6,464
6,131
5,903
-333
94.8
228
3.9
2
3
6
1
150.0
-3
-50.0
952
1,027
856
75
107.9
171
20.0
EXCISES - TOTAL REVENUE
19,528
18,992
18,262
-536
97.3
730
4.0
Amounts in millions of Euros.
GROSS CHAPTER III TAX AND OTHERS COLLECTED PERIOD JANUARY-DECEMBER DIFFERENCE TO BUDGET CONCEPTS
Radio-electronic duty Other taxes Remaining Chapter III and Others Total Chapter III and Others
DIFFERENCE TO 2005
BUDGET 2006 (1)
COLLECTION 2006 (2)
COLLECTION 2005 (3)
DIFFERENCE (4)=(2)-(1)
% (5)=(2)/(1)
DIFFERENCE (6)=(2)-(3)
% (7)=(2)/(3)
246
352
243
106
143.1
109
44.9
520
526
548
6
101.2
-22
-4.0
674
781
702
107
115.9
79
11.3
1,440
1,659
1,493
219
115.2
166
11.1
Amounts in millions of Euros.
39
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
1.7. Net Tax Collection 2006Refunds The following table itemises the total net collection undertaken by the Tax Agency, which in 2006 reached the total of 179,380 million compared to 160,705 million in the previous financial year, exceeding the Budget estimation by 14,064 million. It shows a growth rate of
11.6%, 2.5 points lower than 2005 as a result of refunds being made faster. The amount of refunds carried out in 2006 was 41,890 million, with a positive rate of 16.4% compared to the previous year, a rate that triples the figure achieved in the previous two years (under 5%).
TOTAL NET TAX COLLECTION PERIOD JANUARY-DECEMBER DIFFERENCE TO BUDGET CONCEPTS
Income Tax CORPORATION TAX Non-Resident Income Tax Rest of Chapter II Total Chapter I Value Added Tax Excises Foreign Trade Tax on Insurance Premiums Rest of Chapter II Total Chapter II
DIFFERENCE TO 2005
BUDGET 2006 (1)
COLLECTION 2006 (2)
COLLECTION 2005 (3)
DIFFERENCE (4)=(2)-(1)
% (5)=(2)/(1)
DIFFERENCE (6)=(2)-(3)
% (7)=(2)/(3)
58,536
62,813
54,723
4,277
107.3
8,090
14.8
31,681
37,208
32,495
5,527
117.4
4,713
14.5
1,426
1,498
1,351
72
105.0
147
10.9
54
77
63
23
142.6
14
22.2
91,697
101,596
88,632
9,899
110.8
12,964
14.6
50,045
54,652
49,870
4,607
109.2
4,782
9.6
19,290
18,602
18,022
-688
96.4
580
3.2
1,497
1,595
1,458
98
106.5
137
9.4
1,433
1,387
1,314
-46
96.8
73
5.6
31
25
41
-6
80.6
-16
-39.0
72,296
76,261
70,705
3,965
105.5
5,556
7.9
Total Chapter III and Others
1,323
1,523
1,368
200
151.1
155
11.3
TOTAL REVENUE MANAGED BY THE TAX AGENCY
165,316
179,380
160,705
14,064
108.5
18,675
11.6
Amounts in millions of Euros.
1.7.1. Personal Income Tax The total net income in 2006 shows a growth rate of 14.8% (14.7% in 2005), a rate of 3.8% for refunds.
40
The refunds made in this period were 10,620 million, 89.0% of which were for the IRPF Campaign for the 2005 financial year (including the refunds for non-payers in the sum of 117 million).
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
INCOME TAX
REFUNDS 2006 (1) Working mothers Previous year Two years ago Public Debt Undue payments and others TOTAL
REFUNDS 2005 (2)
DIFFERENCE (3)=(1)-(2)
% (4)=(1)/(2)
650
614
36
5.9
9,488
9,041
447
4.9
208
280
-72
-25.7
0
0
0
-
274
292
-18
-6.2
10,620
10,227
393
3. 8
REFUNDS PERIOD JANUARY-DECEMBER
CONCEPTS
REFUNDS 2006 (1)
REFUNDS DIFFERENCE 2005 (2) (3)=(1)-(2)
% (4)=(1)/(2)
Personal Income Tax CORPORATION TAX Non-Resident Income Tax Rest of Chapter I Total Chapter I
10,620 4,674 982 2 16,278
10,227 3,484 963 1 14,675
393 1,190 19 1 1.603
3.8 34.2 2.0 100.0 10.9
Value Added Tax - VAT- Annual - VAT- Exporters Excises Foreign Trade Tax on Insurance Premiums Rest of Chapter II Total Chapter II
25,070 14,104 10,966 390 10 1 5 25,476
20,944 11,470 9,474 240 8 0 1 21,193
4.126 2.634 1.492 150 2 1 4 4.283
19.7 23.0 15.7 62.5 25.0 0 400.0 20.2
136
124
12
9.7
41,890
35,992
5,898
16.4
Total Chapter III and Others TOTAL REVENUE MANAGED BY THE TAX AGENCY Amounts in millions of Euros.
Refunds made under model 140 (advances for working mothers, 100 Euro per month for children under three years old) rose to 650
million, with an increment of 5.34% compared to the figure in 2005, which was 614 million.
41
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
1.7.2. Corporation Tax The total net income in 2006 was 37,208 million, with a variation rate of 14.5% (24.9% in 2005), a slowing down caused mainly by the larger amount of refunds made in 2006 (1,190 million). Refunds were made of 4,674 million, an increase of 34.2% compared to the same period in 2005, caused by the increase in all areas except in refunds from the previous financial year over the
previous year to that. Refunds for the current campaign (2005 financial year) have grown by 49.9% owing to the strong increase (87.9%) experienced by the tax groups (around 50% of these refunds). The cause can be found in the overpayments on account carried out in 2005 because of the capital appreciations that gave the right to deductions in the annual payments, as well as other deductions not allowed for in the payments in instalments (deductions for dividends).
CORPORATION TAX
Previous year
REFUNDS 2006 (1)
REFUNDS 2005 (2)
DIFFERENCE (3)=(1)-(2)
2,648
1,767
881
49.9
Two years ago
384
440
-56
-12.7
Public Debt
975
946
29
3.1
50
7
43
614.3
0 617
0 324
0 293
90.4
4,674
3,484
1,190
34.2
Taxation Current Account Non-Residents Undue payments and others TOTAL
1.7.3. Non-resident Income Tax Total net tax collection in 2006 grew by 10.9%, for the reasons cited above, as refunds were similar in both years.
42
% (4)=(1)/(2)
1.7.4. Value Added Tax Total net income in 2006 was 54,652 million with a variation rate of 9.6%, influenced by greater refunds carried out in 2006 (4,126 million, 2,634 million of which were for annual VAT). Refunds for annual VAT are itemised as follows:
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
VAT - ANNUAL
REFUNDS 2006 (1) Previous year
REFUNDS 2005 (2)
DIFFERENCE (3)=(1)-(2)
% (4)=(1)/(2)
7,359
5,164
2,195
42.5
193
232
-39
-16.8
52
86
-34
-39.5
Basque Country adjustment
1,209
1,213
-4
-0.3
Navarra adjustment undue payments and others
313 4,978
298 4,477
15 501
5.0 11.2
14,104
11,470
2,634
23.0
Two years ago Taxation Current Account
TOTAL
In annual VAT refunds were made for 14,104 million, 2,634 million more than for the previous year, with an increase of 23.0%, basically caused by the increase in refunds during the current campaign (42.5%).
In respect of the refunds for monthly VAT, 10,966 million have been made, an increase of 15.7%, principally centred on the refunds for the current campaign which have increased by 14.7%.
Refunds applied for in the 2005 financial year showed an increase over those applied for in the 2004 financial year of 19.8% and 95.0% of the viable refunds have been carried out; in this same period in 2005, 93.0% of the viable refunds from the 2004 financial year had been made.
Refunds carried out in the 2006 financial year represented 76.1% of viable refunds.
VAT - MONTHLY
REFUNDS 2006 (1)
REFUNDS 2005 (2)
DIFFERENCE (3)=(1)-(2)
% (4)=(1)/(2)
Current year
8,123
7,085
1,038
14.7
Previous year
2,068
1,772
296
16.7
675 100
564 53
111 47
19.7 88.7
10,966
9,474
1,492
15.7
Taxation Current Account Undue payments and others TOTAL
43
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
1.8. Direct Collection Effect This heading measures the results of control actions carried out by the Tax Agency in the fight against fraud. This direct effect includes the income derived from control actions carried out by the Tax Agency and also the amount of the reductions in refunds. In accumulative terms, up to 31 December 2006, 5,309.633 million Euro have been obtained, which is a total increase of 15.10% over 2005, in which the direct collection effect was 4,612.965 million Euro. The total amount of the direct collection effect obtained in 2006 can be itemised as 4,182.645 million Euro for control actions carried out by the Tax Agency and 1,126.989 million Euro from reductions in refunds. Both amounts are, respectively, an increase of 14.89% and 15.89% over the figures for 2005 (3,640.483 million Euro for income from control actions and 972.482 million Euro from reductions in refunds).
Of the total income derived from control actions by the Tax Agency collected in 2006 (4,182.645 million Euro), 4,142.222 million Euro were obtained from income calculated using the formula provided in Section 103. Five b) of Act 31/1990. This base is constituted by the gross collections from payment and collections management actions or from other administrative actions agreed or directed by the Tax Agency in the area of tax management for which it is responsible, and refers to tax income included in Chapters I and II of the State Income Budget with the exceptions included in the regulation, as well as those included in Chapter III and whose management is the responsibility of the Tax Agency. The remaining income derived from control actions are spread over 20.243 million Euro corresponding to court cases and 20.180 million Euro to customs control actions and on certain taxes assigned to the Autonomous Communities.
DIRECT COLLECTION EFFECT 5,400 5,310 5,200 15.1%
5,000
2006
4,800 4,600 4,400 4,200
44
2005
4,613
II.-
REPORT
2006
SUMMARY OF OPERATIONS
2. TAX ROLL
The
tax roll is a basic instrument for the application of the tax system by the Tax Administration. The general information contained in the roll is divided and organised according to the characteristics of specific groups of taxpayers
(roll of company owners, professionals and withholders, large companies, special tax operators, etc.). In 2006, the roll of individual taxpayers was purged and deceased persons were deleted.
GENERAL TAXPAYER ROLL
VARIATION 2006/2005
2005
2006
Individuals
37,941,205
37,752,083
-0.50%
Companies
2,208,891
2,341,985
6.03%
Other legal persons
1,758,460
1,845,933
4.97%
41,908,556
41,940,001
0.08%
TOTAL TAXPAYERS Not including the Basque Country and Navarre.
Tax Roll of company owners, professionals and withholders This roll includes those people or organisations that carry out business or
professional activities or who pay rent subject to withholding, are who are obliged to file tax returns on a regular basis.
ROLL OF SELF-EMPLOYED, PROFESSIONAL AND WITHHOLDERS
2005 Self-employed, professionals and withholders
4,755,304
2006 4,964,552
VARIATION 2006/2005 4.40%
Not including the Basque Country and Navarre.
Large Companies Tax Roll The Large Companies tax roll has grown significantly in 2006. This consists of 34,869 taxpayers over which the Management Units in
the Central Delegation of Large Taxpayers have jurisdiction (2,933 organisations) and the Large Companies Management Units of the Regional Audit Offices (31,936 taxpayers).
45
II.-
REPORT
2006
SUMMARY OF OPERATIONS
2. TAX ROLL
LARGE COMPANY ROLL (1)
Central Delegation of Large Taxpayers Large Company Management Unit for Regional Dependencies TOTAL
VARIATION 2006/2005
2005
2006
2,498
2,933
17%
29,591
31,936
8%
32,089
34,869
9%
(1) Includes those companies with a turnover higher than 6, 010,121.04 Euro.
ROLL OF SMALL BUSINESS UNDER SPECIAL REGIME (MODULES SCHEME)
YEAR
ROLL POTENTIAL
PEOPLE OPTING OUT
% PEOPLE OPTING OUT OF TAXPAYER ROLL POTENTIAL
TAXPAYERS IN MODULES
2005 2006
2,295,250 2,279,276
473,974 474,226
20.65 20.80
1,821,276 1,805,050
Roll of Customs and Excises operators. ROLL OF SPECIAL TAXES OPERATORS (1)
Alcoholic and similar drinks Hydrocarbons Beer Tobacco Labour Electricity and similar Retail sale of hydrocarbons TOTAL
2005
2006
VARIATION 2006/2005
12,172 7,655 32 31 3,792 15,397
12,329 7,668 27 30 8,884 15,959
1.29% 0.17% -15.63% -3.23% 134.28% 3.65%
39,084
44,897
14.87%
(1) The regulations for Excises and for Tax on the Retail Sale of Certain Hydrocarbons imposes the obligation that certain operators should be registered, before beginning their activities, in the Regional Registers held in the offices managing Excises.
46
II.-
REPORT
2006
SUMMARY OF OPERATIONS
2. TAX ROLL
ROLL OF INTRASTAT* TAXPAYERS
In importing In delivery/exporting TOTAL
2005
2006
VARIATION 2006/2005
30,892 20,901
30,786 20,550
-0.35% -1.68%
51,793
51,336
-0.89%
* The variation in the number of INTRASTAT returns from 2005 to 2006 is due not only to the reduction in statistical taxpayers by applying simplifying measures (raising the Exclusion Threshold), but also to the application of standardisation criteria with the European Statistics Office, EUROSTAT.
ROLL OF CUSTOMS OPERATORS
Customs and Excises Officers Indirect Representatives TOTAL
2005
2006
VARIATION 2006/2005
712 421
718 467
0.84% 10.92%
1,133
1,185
4.58%
47
II.-
REPORT
SUMMARY OF OPERATIONS
2006
3. RETURNS PROCESSED
T
he following sections contain detailed information on the tax returns filed in 2006,
highlighting in electronically.
particular
those
filed
3.1. Returns filed by tax category INCOME TAX RETURNS PRESENTED
TOTAL RETURNS 2005
TOTAL % FILED FILED % RETURNS 06/05 ELECTRONICALLY ELECTRONICALLY 06/05 2006 2005 2006*
Positives
3,512,745
3,861,196
9.92
271,587
To refund
12,345,842
12,819,242
3.83
2,676,946
133,549
136,070
1.89
34,361
16,816,508 5.15
2,982,894
Negatives and renunciations
TOTAL INCOME TAX 15,992,136
408,452
50.39
3,323,270 24.14 43,746
27.31
3,775,468 26.57
* In addition to returns filed and the pre-populated returns confirmed by Internet (3,775,468), a total of 1,685,512 returns and prepopulateds were filed and confirmed through corporate Intranet (182,966 positive; 1,491,093 to be refunded and 11,453 negative and renounced).
DECLARATIONS PRESENTED FOR WEALTH TAX
FILED FILED TOTAL % TOTAL % RETURNS RETURNS 06/05 ELECTRONICALLY ELECTRONICALLY 06/05 2006 2005 2006 2005 Positives
908,247
944,741
4.02
48,504
77,936
60.68
Negatives
15,663
16,665
6.40
1,795
2,573
43.34
923,910
961,406
4.06
50,299
80,509
60.06
TOTAL CORPORATION
DECLARATIONS FILED TAX*
TOTAL TOTAL % FILED FILED % RETURNS RETURNS 06/05 ELECTRONICALLY ELECTRONICALLY 06/05 2005 2006 2005 2006 Positives
413,364
435,869 5.44
11,285
38,325 239.61
To refund
222,217
239,510 7.78
64,232
93,329
45.30
Zero tax payable and renunciations
497,362
542,199 9.01
170,156
241,911
42.17
TOTAL CORPORATION TAX 1,132,943
1,217,578 7.47
245,673
373,565
52.06
* Models 200/201 and 225 are included. Data from the DCGC (Directorate General of Large Companies) and URGGE (Central Management Unit of Large Companies) are excluded.
48
II.-
REPORT
2006
SUMMARY OF OPERATIONS
3. RETURNS PROCESSED
VAT RETURNS PRESENTED
TOTAL RETURNS, 2005
TOTAL RETURNS, 2006
Positives
2,017,481
2,090,581
3.62
599,120
791,074
32.04
To refund
276,871
310,266
12.06
93,691
136,366
45.55
To compensate
675,525
728,753
7.88
270,696
365,060
34.86
Negatives
122,329
129,997
6.27
30,649
42,705
39.34
3,092,206
3,259,597
5.41
994,156
1,335,205
34.31
TOTAL VAT
% FILED FILED 06/05 ELECTRONICALLY ELECTRONICALLY 2005 2006
% 06/05
Data from the DCGC (Directorate General of Large Companies) and URGGE (Central Management Unit of Large Companies) are excluded.
SPECIAL TAX RETURNS PRESENTED
Transactions declared
TOTAL RETURNS 2005
TOTAL RETURNS 2006
7,504,964
% FILED FILED 06/05 ELECTRONICALLY ELECTRONICALLY 2005 2006
% 06/05
7,305,991
-2.65
6,761,844
6,630,285
-1.95
35,867
4.69
9,388
12,783
36.16
11,998
21.17
5,668
7,620
34.43
7,353,856
-2.59
Settlement declared Positivas
34,261
Zero tax payable
9,902
TOTAL
7,549,127
6,676,900
6,650,688
-0.39
3.2. Electronic returns submitted by companies. Large companies The use of new technologies by large companies for filing tax returns electronically has increased
by 9% for compulsory electronic filing and by 36% for voluntary electronic filing.
49
II.-
REPORT
2006
SUMMARY OF OPERATIONS
3. RETURNS PROCESSED
ELECTRONIC PRESENTATION BY LARGE COMPANIES 2006 MANDATORY FILING
NUMBER OF COMPANIES
NUMBER OF RETURNS
96,250
881,494
D 06/05 9%
ELECTRONIC PRESENTATION BY LARGE COMPANIES 2006 VOLUNTARY FILING
NUMBER OF COMPANIES
D 06/05
NUMBER OF RETURNS
20,477
145,220
Small and medium-sized companies
36%
number of returns filed electronically on voluntary basis increased by 29% and those on mandatory basis increased by 43%.
Likewise, SMEs have notably increased the number of returns filed electronically. The
ELECTRONIC PRESENTATION BY SMALL AND MEDIUM COMPANIES 2006 VOLUNTARY FILING
NUMBER OF COMPANIES
NUMBER OF RETURNS
1,788,920
∆ 06/05
4,321,760
29%
ELECTRONIC PRESENTATION BY SMALL AND MEDIUM COMPANIES 2006 OBLIGATORY PRESENTATION
NUMBER OF COMPANIES 11,740
NUMBER OF RETURNS 130,642
Form 330 must be filed over the Internet since October 2005.
50
INCREMENTO RESPECTO 2004 43%
II.-
REPORT
2006
SUMMARY OF OPERATIONS
3. RETURNS PROCESSED
3.3. Other documents processed by the Excises management offices MAIN DOCUMENTS PROCESSED BY SPECIAL TAX OFFICES
2005
2006
% ∆ 06/05
Excise stamps provided to those requesting them* : 5,590,277,559
3,947,425,528
-29.39
a) Alcoholic and similar drinks
471,183,910
471,250,419
0.01
b) Cigarettes
5,119,093,649
3,476,175,109
-32.09
Circulation documents issued:
7,385,273
7,184,814
-2.71
a) Accompanying documents
1,750,848
1,718,940
-1.82
b) Delivery notes (sales en route)
5,634,425
5,465,874
-2.99
Accompanying documents received
77,675
80,771
3.99
Cards (registration on TR and supply of alcohol)
26,298
6,959
-73.54(1)
Results reports from alcohol factories
3,723
2,884
-22.54
Quarterly summaries of raw materials
4,781
4,028
-15.75
Declarations of operations in factories and bonded warehouses
27,238
27,898
2.42
3,665
3,627
-1.04
Request for authorisation to receive products from rest of EU
(*) The data regarding the tax framework provided to applicants include those provided by Spanish Customs and Excises Management Offices, including those located in the Autonomous Communities of Navarre and the Basque Country. The other information refers to documents processed in Excises Management Offices of the Common Territory, i.e. not including managing offices in Álava, Guipúzcoa, Navarre and Vizcaya. (1) In 2005, it was necessary to renew all the cards affected by the change in the composition of the Activity and Establishment Code (CAE) which went from 8 to 13 digits within the framework of community harmonisation.
3.4. Documents processed by Customs The number of foreign trade tax returns managed by Customs continued to rise in 2006,
both the field of intracommunity trade and in trade with third countries.
51
II.-
REPORT
2006
SUMMARY OF OPERATIONS
3. RETURNS PROCESSED
MAIN DOCUMENTS PROCESSED BY CUSTOMS TRADE DECLARATIONS WITH THIRD PARTY COUNTRIES:
NUMBER %
06/05
2005
2006
Import declarations Electronic Paper
3,723,713 3,664,720 58,993
3,885,022 3,842,312 42,710
4.33 4.84 -27.60
Export declarations Electronic Paper
4,226,022 4,158,813 67,209
4,389,049 4,341,511 47,538
3.85 4.39 -29.27
Transit documents - entry (number of headings) Electronic Paper
383,178 367,440 15,738
393,986 388,494 5,492
2.82 5.73 -65.10
Transit documents - exit (number of headings) Electronic Paper
385,479 370,842 14,637
386,728 381,429 5,299
0.32 2.85 -63.80
Declarations of linkage to bonded warehouses Electronic Paper
283,583 280,702 2,881
209,793 208,507 1,286
-26.02 -25.72 -55.36
Introduction Electronic Other media
394,494 326,678 68,016
395,964 343,160 52,804
0.37 5.04 -22.37
Issuance Electronic Other media
263,452 224,751 38,701
259,712 231,297 28,415
-1.42 2.91 -26.58
INTRASTAT DECLARATIONS
For the comparison of interannual data, it must be taken into account that in 2006 the criteria were modified for considering the statistical returns of the Intrastat system in agreement with that established in Eurostat questionnaires (Quality Information on foreign trade, Questionnaire on Methods and ICT/EDI/QUESTIONNAIRE).
52
II.-
REPORT
2006
SUMMARY OF OPERATIONS
3. RETURNS PROCESSED
SPAIN-S FOREIGN TRADE
IMPORTS Community trade Trade with third party countries DELIVERY AND EXPORTING Community trade Trade with third party countries
2005
2006
231,371,566
259,559,026
12.18
140,722,453
151,687,892
7.79
90,649,113
107,871,134
19.00
153,558,995
169,872,016
10.62
110,700,490
119,502,047
7.95
42,858,505
50,369,969
17.53
%
06/05
Amounts in millions of Euros.
3.5. Tax returns with right to refund in the self-assessment system. Tax regulations establish specific situations in which the Administration must make refunds of amounts resulting from taxpayer self-assessments. This occurs, for example, with
Income Tax and Corporation Tax when the sum of the quantities withheld at source and the amounts paid on account exceed the tax due resulting from self-assessment, or in Value Added Tax when the quantity of the deductible amount exceeds the quantity of the amount due.
DECLARATIONS WITH RIGHTS TO AUTOMATIC DEDUCTIONS IN THE SELF-SETTLEMENT SYSTEM CONCEPTS
NUMBER
INCOME TAX Year 2006
12,819,242
Year 2005
12,345,842
Change % 2006/2005
3.83
I, CORPORATION TAX Year 2006
239,510
Year 2005
222,217
Change % 2006/2005
7.78
VAT Year 2006
310,266
Year 2005
276,871
Change % 2006/2005
12.06
53
II.-
REPORT
2006
SUMMARY OF OPERATIONS
3. RETURNS PROCESSED
3.6. Communications related to rapid refunds for persons not obliged to file an Income Tax Return
For this purpose, the Tax Agency has run two campaigns. The first, a campaign for processing refund requests for those who do not have to file an income tax return, on forms 104 and 105. The second, the income tax campaign that includes, in addition to the traditional information, the possibility of requesting a pre-populated tax return. During 2006, 556,727 refund requests (Form 104) were made, of which 46,335 were accompanied by Form 105, communicating additional information.
Taxpayers who do not have to file an income tax return, in accordance with section 97 of the rewritten text of the Income Tax Act, may send a communication to the Tax Office requesting the refund of the amount resulting when the sum of the tax deducted at source and amounts paid on account of the payments in instalments made and, where applicable, the predicted deduction in section 83 of the Act, is higher than the tax liability from the amount of double taxation of dividends and international payments.
REBATE APPLICATIONS USING FORM 104 FOR 2005 SITUATIONS Applications for rebate refund
2004 CAMPAIGN
2005 CAMPAIGN
777,627
556,727
*Amount in millions of Euros.
The requests presented gave rise to 380,772 refunds and 50,637 pre-populated returns with the right to refund.
54
The amount of the refunds was 117.203 million Euro and in the case of pre-populated return, 26.700 million Euro.
II.-
REPORT
2006
SUMMARY OF OPERATIONS
4. TAXPAYER SERVICES
4.1. Information Services 4.1.1. Non-personalised information This information is supplied to citizens on a general basis and without being expressly requested by them. The Tax Agency informs citizens by means of advertising campaigns
using different communication media. It also sends informative letters and edits guides, practical manuals and informative publications, the objective of which is to offer specific information to taxpayers about the taxes that may affect them.
NON-PERSONALISED INFORMATION 2005
2006
VARIATION 2006/2005
Informative letters
36,270,697
38,970,226
7.44
Practical manuals
468,000
429,500
-8.23
11,489,000
15,800,450
37.52
Informative publications Number of copies sent.
4.1.2. Personalised information The Tax Agency also provides information services following request by citizens. General telephone information Through centralised telephone information services (single telephone number for the whole country and independent from the information
services of the Delegations and Administrations, 901 33 55 33) a total of 5,476,178 calls were answered, with a coverage of 92.44% of calls received. For Personal Income Tax Campaign, the tax information platform was reinforced with 555 posts and 884 people between 17 April and 30 June, handling 2,669,253 calls during these months.
GENERAL TELEPHONE INFORMATION 2005
2006
VARIATION 2006/2005
Calls received (1)
6,169,434
5,924,042
-3.98
Calls answered (2)
5,750,511
5,476,178
-4.77
Coverage (2) / (1)
93.21%
92.44%
-0.83
Attempts (1) / (2)
1.07
1.08
0.93
55
II.-
REPORT
2006
SUMMARY OF OPERATIONS
4. TAXPAYER SERVICES
Queries to the INFORMA programme The INFORMA.es programme is the main source for obtaining written information from the Tax Agency. It consists of a database of tax questions and answers that may be accessed by both internal and external users. The INFORMA programme is also available for consultation over the Internet. In 2006, the number of system accesses were 4,727,070, some 83% more than in 2005. Binding tariff information The Community Customs Code enables the consultation of the tariff classification for any specific goods. The information obtained is binding on the customs authorities of all the Member States for import and export operations. In 2006, a total of 516 consultations were handled. 4.2. Assistance services The purpose of the assistence services is to enable taxpayers to meet their obligations. The
Tax Agency provides computer programmes so that taxpayers can complete their own tax returns. Likewise, the Tax Agency directly helps the taxpayer to complete the tax return, either at the Agency's own offices or at the offices of the Agency's collaborating organisations. The Agency also provides tax data to taxpayers for the income tax return and sends, in those where it is appropriate, the pre-populated tax return to the taxpayer's home, if previously requested. 4.2.1. Pre-populated Income Tax Return In order to enable taxpayers to meet their income tax (IRPF) obligations, the Tax Agency provides a pre-populated income tax return or sends tax data to citizens who request it. The pre-populated return, once reviewed by taxpayers, can be confirmed by different methods (by telephone, Internet, SMS, etc.) or completed or modified. The data for 2006 reveal that the service has been definitively consolidated with a significant increase (27.81%) in its demand.
DRAFT INCOME TAX RETURNS
Sending of pre-populated income tax return / tax details Pre-populated tax returns confirmed
VARIATION 2006/2005
2005
2006
11,801,018
15,083,091
27.81
2,873,462
4,197,629
46.08
4.2.2. Computer help programmes Currently, there are help programmes for completing the main tax returns. A large proportion of the tax returns received are made
56
using these programmes, both on paper with PDF code and on magnetic media or over the Internet.
II.-
REPORT
2006
SUMMARY OF OPERATIONS
4. TAXPAYER SERVICES
PERCENTAGE OF TAX RETURNS ENTERED INTO THE DATABASE PREPARED USING THE HELP PROGRAMS TYPE
2006
Personal Income Tax (IRPF)*
97.89
Value Added Tax (VAT)
83.54
CORPORATION TAX
96.89
*The pre-populated tax returns confirmed through any of the possible channels are also included.
Other help programmes for completing tax returns The Help Programmes made available to taxpayers during 2006 were the following: Tax Returns: Income (PADRE programme), Wealth (714), Corporation (201 and 2 2 5 ) , VAT (390, 392, 311 and 300) and Modules (131 and 310). Informational returns: Forms 180, 182, 184, 188, 190, 193, 198, 296, 345, 347 and 349. Printed module for Payments in instalments for Forms 110, 115, 123, 130, 131, 202, 300, 310 and 311. 2007 withholding calculations. 4.2.3. Appointment service The appointment service is designed to arrange appointments over the Internet (without the user certificate) or by telephone at the number
901 22 33 44, although in certain exceptional circumstances they can also be arranged directly at the Tax Agency offices. As an innovation during the 2005 Income Tax Campaign, it was possible to arrange an appointment to correct the prepopulated tax return over a voice recognition unit (VRU). During 2006, a total of 3,700,038 appointments were arranged. 4.2.4. Call centre This service was started to maximise the speed of tax refunds to people who do not have to file an income tax return. Currently, this service not only informs about the procedure for rapid refunds and calculates the amount of refund, but also handles any doubts or discrepancies that may arise, informs on the status of the refund process and enables other procedures without needing to visit the Agency's offices.
57
II.-
REPORT
2006
SUMMARY OF OPERATIONS
4. TAXPAYER SERVICES
TELEPHONE HELPLINE CENTRE (CAT)
Management of rapid income tax refund (1) Management of pre-populated tax declarations (2) Management of maternity credits (3) Centralised appointments (3) Change of address (3)) Collection (4)
2005
2006
VARIATION 2006/2005
817,060 1,302,348 225,601 45,360 161,746 90,101
752,210 1,043,726 283,975 58,531 151,562 153,610
-7.94 -19.86 25.87 29.04 -6.30 70.49
(1) Includes the number of calls answered and the procedures performed (CAT, OTAC and VRU). (2) Includes the number of calls answered by the Taxpayer Call Centre (OTAC), and CAT. (3) Number of calls answered. (4) The number of calls answered by CAT are included, relating to: recording requests for deferred and payments in instalments; refunds as well as subscription to Tax Agency services.
4.2.5. Voice recognition units on 901 12 12 24 This is an automatic service operational 24 hours per day. The following services were provided in 2006 by automatic telephone units with voice recognition: requests for identification labels, automatic information about income tax, VAT and Corporation tax refunds, requests for tax data for the income tax return, confirmation of letters send to taxpayers who did not have to file a tax return in the previous year, confirmation of prepopulated tax returns with amounts to refund or to pay, request for appointment to correct the pre-populated tax return and requests for income tax certificates. The total number of calls received on these voice recognition units was 5,917,619. 4.2.6. Advance credit of deduction for working mothers Women with children under three who are employed or self-employed and are registered with Social Security or mutual fund have the right to a deduction in their income tax of up to 1,200 Euro per year for each child under three years of age. The Tax Agency paid an amount of 650.177 Million Euro, for a total of 733,159 requests presented in 2006.
58
4.2.7. Speeding up customs clearance The average clearance time indicator is that which is used to measure the time between the time of acceptance of the customs declaration, either physically (for declarations of document checking, that are assigned to the orange circuit, or for the physical checking of goods - red circuit) or by electronic means (for other declarations - green circuit) and the moment of clearance. It reflects the time of administrative processing of the customs declarations. This indicator was 28.32 minutes (in 2005 it was 25 minutes). The average processing time (availability time) is the time between the moment at which the declaration is presented electronically (irrespectively of the circuit to which it is assigned) and the moment of clearance. This indicator reflects the processing time of customs declarations, including the time attributable to the customs representatives. This indicator was reduced from 5.52 hours in 2005 to 4.73 hours in 2006. 4.3. Facilities for payment of tax liabilities The tax debts are collected by authorised credit agencies (collaborating organisations in tax collection management).
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REPORT
2006
SUMMARY OF OPERATIONS
4. TAXPAYER SERVICES
4.3.1. Collaborating organisations On 31 December 2006, the Tax Agency had authorised 189 organisations to act as collaborators for tax collection, which collected a total of 220,871 million Euro.
The distribution between the different types of credit organisation is described in the following table:
COLLABORATING ENTITIES
AMOUNTS 2005
2006
VARIATION 2006/2005
Private banks
131,215
143,933
10%
Savings banks
60,252
71,632
19%
4,481
5,306
18%
195,948
220,871
13%
Cooperative and rural banks TOTAL
COLLECTION BY COLLABORATING ENTITIES 2006 AMOUNTS 2.40%
32.43% Savings banks Private banks
65.17%
Credit cooperatives
Amounts in millions of Euros.
The collaborating organisations are subject to monitoring and control systems by the Tax Agency. During 2006, checking operations were performed on twenty-seven organisations. A total of 8 disciplinary proceedings were started. In addition, 11 proceedings were resolved, with the result of the adoption of restrictive measures (temporary suspension) of the authorisation granted and 177 settlements of default interest due to payment outside the deadline by 82 organisations.
4.3.2. Deferred and payments in instalments Deferred payments and payments in instalments are an effective way of facilitating compliance with obligations. This possibility affects both liabilities in the voluntary period as well as those in the execution period. The following graphic shows the evolution in the number and amount of deferred payments requested in 2005 and 2006.
59
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REPORT
2006
SUMMARY OF OPERATIONS
4. TAXPAYER SERVICES
EVOLUTION ON APPLICATION FOR DEFERREMENTS
6,000 4,974.97 5,000 4,000 2,854.95
3,000 2,000 1,000
490,594
473,600
0 2005
2006
Applications
Amounts
Amounts in millions of Euros.
The following table offers a summary of the management of deferred payments during the
2006 tax year, with a breakdown of the liability situation.
SUMMARY OF POSTPONEMENT MANAGEMENT 2006, NATIONAL TOTAL SITUATION OF THE DEBT
TOTAL APPLICATIONS*
GRANTED
DENIED
TOTAL SOLVED
PENDING AT 31-12-06
TOTAL NUMBER
473,600
289,114
129,239
418,353
55,247
AMOUNT
4,974.97
1,578.49
1,063.66
2,642.15
2,332.82
Detail in numbers and amount in millions of Euros * The total number of requests includes those pending at the start of 2006.
4.4. Other services 4.4.1. Issue of tax certificates During 2006, a total of 5,082,535 tax certificates were issued, a reduction of slightly over 6% compared with the previous year. This decrease is fundamentally explained by a reduction of
60
22.11% in the certificates issued by the Tax Agency's offices, as other channels of requesting certificates, such as over the Internet with a digital certificate, have significantly increased. The reduction in the number of certificates issued is also explained by the supply of
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REPORT
2006
SUMMARY OF OPERATIONS
4. TAXPAYER SERVICES
information by electronic means to Autonomous Communities and Local Organisations, made in order to avoid the need for certificates. Specifically, during 2006, a total of 6,691,386 supplies of information to autonomous and local bodies were made, an increase of more than 10% compared with the previous year. These supplies of information have avoided the direct provision by citizens of tax certificates or copies of their tax returns. 4.4.2. Advanced price agreements In compliance with the laws regulating every tax, taxpayers can request the Tax Agency to determine in advance and in a binding way the valuation for tax purposes of income, products, goods, expenses and other elements determining the tax liability. During 2006, a total of seventeen early agreements of binding operations were resolved, providing the following results: thirteen approved, two denied and in another two cases they were withdrawn by the applicants. On 31 December 2005, there were fifteen requests pending resolution, to which nineteen new
requests presented during the tax year were added. On 31 December 2006, there were seventeen requests pending resolution. In addition, eight requests for prior agreements for R+D+i, five of which were resolved in the tax year with the following results: two requests approved, two denied and one withdrawn. Given that two requests were pending resolution on 1 January 2006, at the end of the tax year there were five requests pending resolution. Likewise, forty-three new requests for criteria for temporary accounting distinct from amounts due, to which the nineteen pending requests from 2005 have to be added; in the tax year, sixty-one requests were resolved with the following results: Thirty-five approved, twenty-one denied and five withdrawn. Lastly, the following table reflects the number of reports finalised in 2006 in the various programmes regarding reports issued by the audit bodies at the taxpayer's proposal.
NUMBER OF CASES FINALISED IN PROGRAMMES RELATING TO: REPORTS ISSUED BY AUDITING UNITS AT THE REQUEST OF THE TAXPAYER CRITERIA FOR THE COSTS OF ALLOCATION TEMPORARY OF REVENUE ABANDONMENT AND COSTS OF SPECIAL VALUATIONS DEPRECIATION OTHER THAN EXTRAORDINARY ECONOMIC REINVESTMENT LINKED (NON-LINKED PLANS ACCRUALS REPARATIONS EXPLOITATION PLANS OPERATIONS OPERATIONS)
TOTALS
SPECIAL DELEGATIONS
242
24
6
15
16
20
44
367
CENTRAL DELEGATIONS
103
0
23
1
0
5
22
154
TOTAL
345
24
29
16
16
25
66
521
Detail in numbers and amount in millions of Euros
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
T he deployment over the last two years of the Fraud Prevention Plan, maintaining the assistance services to facilitate taxpayers in voluntarily complying with their obligations and reinforcing the control activities, both extensive and selective, has resulted in an important improvement in tax compliance.
This can be seen on analysing the relationship between the growth of our economy and the increase in tax collection. Specifically, the total gross tax collected, managed by the Tax Agency, represents an increase of 12.5% in 2006, which is the highest reached in the last nine years. The amount of tax collected grew 11.6%, almost four points higher than the nominal GDP (7.8%). RATES OF VARIATION IN TAX REVENUE AND GDP
15
14.1
12 9
8.0
8.6
11.6
8.2 7.3
6
6.3
7.1
01
02
7.4
7.8
7.8
05
06
5.7
3 0 03
04
-3 Revenue
The control activities have two main objectives: the discovery of taxpayer's non-declared liabilities and the collection of the debts not paid voluntarily within the established time period. Control activities can be: 1. Extensive. These are mass control measures, which are carried out with powerful computer support in relation to all tax returns and, especially, during the annual campaigns for the various taxes and are fundamentally based on the information available in the Tax Agency's databases. 2. Selective and investigatory. These are controls on taxpayers who, according to the objective criteria, are considered to present a
62
GDP
higher risk of evasion of their obligations to pay taxes. 3. Tax collecting. These are actions directed at receiving payment of tax credits and other public rights that were not paid during the voluntary period by the debtor. 5.1. Extensive checking 5.1.1. Extensive domestic taxes
control
actions
on
5.1.1.1. Clean-up of the tax roll During 2006, a series of tasks leading to the cleanup of the tax roll records of company owners, professionals and withholders were performed, having developed the following two campaigns:
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
Comprehensive tax roll clean-up (DCI):
5.1.1.2. Verification of annual tax returns
– Letters issued: 182,602
Personal Income Tax
– Taxpayers visited: 685
As in previous years, the income tax verification campaign was undertaken in two distinct phases.
– Taxpayers removed from the DCI having had all their data cleaned: 265,061 Clean-up of the Index of Organisations and demands sent to those not having an obligation to file a Corporation tax return (DIE): – Demands issued: 174,999 – Provisional cancellations issued: 93,014
The first phase is the mass verification of the tax returns with the aim of detecting errors and discrepancies in the data declared compared with the information in the Tax Agency databases. A total of 515,835 provisional settlements were issued for an amount of 458.562 million Euro.
INCOME TAX 2004
SETTLEMENTS NUMBER OF SETTLEMENTS TOTAL
515,835
% 100.00
AMOUNT % VARIATION 04/03
AMOUNT*
%
% VARIATION 04/03
AVERAGE AMOUNT**
5.04
458.562
100.00
25.85
888.97
*Amount in millions of Euros. ** Average amount in Euro.
Within the first phase of mass verification, tax returns are classified by a series of filters checking for possible arithmetic or regulatory errors, detecting discrepancies between the data
declared and that attributable to information declarations and for specific sections of the tax return, checking that these do not exceed certain limits or amounts.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
In the second phase of the verification campaign on those filing and not filing a tax return, a total of 18,697 settlements were made for an amount of 18.644 million Euro. However, it should be taken into account that at the time of obtaining these data the "2004 Income Tax checking" campaign has still not been concluded.
The overall results of the 2004 Income Tax checking indicate an amount of 477.206 million Euro collected from a total of 534,532 taxpayers, as can be seen in the following table:
INCOME TAX 2004
NUMBER Provisional settlements of tax returns presented 2nd Stage (including declarants and non declarants) TOTAL
515,835 18,697 534,532
% VAR. PREVIOUS YEAR
AMOUNT
% VAR PREVIOUS YEAR
5.04
458.562
25.85
55.73
18.644
127.75
6.25
477.206
28.09
Amount in millions of Euros.
Additionally, the 2005 Income Tax checking started in 2006. Corporation tax In 2006, a total of 21,253 settlements were made for Corporation tax 2004 for a total amount of 126.045 million Euro, an increase of 82% compared with 2006. These data do not reflect the verifications carried out in Large Companies, which, because of their specialised nature, are analysed in depth in the section "Extensive control activities with large companies". Value Added Tax In 2005, with the aim of verifying the annual summary return for 2005, not including the checks carried out by the Central Delegation of Large Taxpayers nor in the Regional Units of Management of Large Companies, a total of
64
75,161 settlements were made for an overall amount of 457.425 million Euro. These data are not definitive, given that the campaign will finish during 2007. Furthermore, the VAT 2005 control campaign started in 2006. 5.1.1.3. Checking of periodic returns The existence of a roll of company owners, professionals and withholders, which contains, among other information, their periodic obligations, enables controlling those who do not comply with their obligations, by means of crosschecking against the self-assessments filed. The checking of periodic obligations is achieved through the Self-Assessment Filing Control System (SCPA). Two branches of processing by reference level are distinguished in this system.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
1. Obligations with certain reference level which also include: a) Control activities carried out on taxpayers included in the objective estimation system for Income Tax, regarding Form 131 (Payments
in instalments) and Form 310 (simplified VAT system) corresponding to the third and fourth quarters of 2005 and the first and second quarters of 2006 have resulted in the filing of 3,316 late self-assessments for 4.5 million Euro.
VERIFICATION OF PERIODIC DECLARATIONS USING FORMS 131 AND 310
NUMBER OF SELF-SETTLEMENTS OUT OF TIME
3,316
AMOUNT PAID IN*
4.524
*Amount in millions of Euros.
b) Checking activities carried out for control of the correct presentation of payments in instalments on account for Corporation tax, in those cases where these payments are made in reference to the full quota of the last tax
year reduced by the deductions, withholdings and instalments, have also resulted in the filing of 1,206 self-assessments for the third settlement period of 2005 and the two first settlement periods of 2006.
VERIFICATION OF PERIODIC DECLARATIONS USING FORM 202
NUMBER OF SELF-SETTLEMENTS PRESENTED AMOUNT PAID IN*
1,206 13.266
*Amount in millions of Euros.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
2. Obligations with estimated reference level, which is checked quarterly and includes: The sending of a notification letter without acknowledgement of receipt to those taxpayers who have failed to comply in that quarter, requesting them to file the corresponding return. The sending of a demand with acknowledgement of receipt, requesting the taxpayer to file the returns for the tax year.
The activities performed during the checking campaigns for periodic self-assessments in the third and fourth quarters of 2005 and the first and second quarters of 2006 resulted in the filing of 102,989 late self-assessments for an amount of 95.5 million Euro. The main tax return forms checked in these activities are the following: Form 110 (withholdings), Form 130 (staged income tax payments for direct estimation) and Form 300 (quarterly VAT).
VERIFICATION OF PERIODIC OBLIGATIONS USING THE SYSTEM FOR THE CONTROL OF PRESENTATION OF SELF-SETTLEMENTSESTIMATED REFERENCE LEVEL (Q3 and Q4 2005 and Q1 and Q2 - 2006)
SELF-SETTLEMENTS PRESENTED NUMBER
AMOUNT*
102,989
95.486
AVERAGE AMOUNT** 927.15
*Amount in millions of Euros. ** Amount in Euro.
5.1.1.4. Checking of periodic returns: VAT Exporters and other Economic Operators VAT taxpayers included in the register of Exporters and other Economic Operators file monthly periodic tax returns. These returns are processed using a computer application similar
66
to that used for Income Tax, Corporation Tax and VAT except that being monthly they are operated throughout the corresponding year. In the 2006 tax year, 217,763 tax returns were filed. These data are not definitive, given that the campaign for this tax year will finish during 2007.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
VAT RETURNS PRESENTED BY THOSE ON THE REGISTER OF EXPORTERS TOTAL RETURNS. 2005
TOTAL RETURNS. 2006
% FILED FILED 06/05 ELECTRONICALLY ELECTRONICALLY 2005 2006
% 06/05
Positives
36,780
38,559
4.84
29,480
38,559
30.80
To refund
108,476
110,285
1.67
90,314
111,285
23.22
To compensate
30,854
32,522
5.41
24,963
35,522
42.30
Refund/ Compensation
35,311
35,164
-0.42
28,234
35,164
24.54
1,546
1,233
-20.25
923
1,233
33.59
212,967
217,763
2.25
173,914
221,763
27.51
Negatives TOTAL VAT
5.1.1.5. Register of Exporters and other Economic Operators Starting from 25 October 2006, a new application for the processing for the Register of Exporters and other Financial Economic came into effect.
In the time during which it has been operational, the application has processed 411 applications to join the Register, of which 18 have been approved, 62 denied and, in 97 cases, the taxpayer has withdrawn.
NUMBER OF CASES 2006 New registration declarations
411
End of registration declarations
213
New registrations approved
18
New registrations denied
62
New registrations not proceeded with
97
Audit
23
5.1.1.6. Special Tax on Certain Means of Transport (IEDMT) During 2006, the procedure for control and management of the IEDMT, based on the mandatory electronic filing of the tax returns not containing exemptions or exceptions, was consolidated.
These tax returns are subject to automatic classification, which is standardised and immediate, using a computer application that generates an "electronic registration code". The entire system is based on the agreement between the Tax Agency and the National Traffic Department signed in February 2006 (an
67
REPORT
2006
II.SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
agreement replacing other agreements prior to 2005). Its whole purpose is the fight against and the detection of fraud, whilst speeding up the processing of vehicle registrations and other means of transport.
The computer application for the control of IEDMT returns started to be established in trials in the last quarter of 2005 and has now been in effective use since 1 January 2006. During 2006, a total of 1,655,044 returns (Form 576) were filed for this tax.
NUMBER OF FORM 576 CASES 2006 Declarations presented
1,655,044
Sent to Customs and Excises Audit
7,406
Declarations required
10,900
Checked and finalised
64,576
5.1.2. Activities on taxpayers in Special Small Businesses regime (hereafter modules scheme) The results of activities for regularising the tax situation of taxpayers in modules, that arose
through audit activities and the provisional settlements during 2006 were as follows: RESULTS OF CONTROL ACTIVITIES FOR MODULES 2006
NUMBER
AMOUNT
9,749
3.021
Audit Reports
32,431
44.616
TOTALS
42,180
47.637
Provisional assessments issued
Amount in thousands of Euros.
5.1.3. Extensive control activities with large companies The results of settlements of the tax situation of large companies are as shown in the following table, coming to 503.85 million Euro.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
LARGE COMPANIES SETTLEMENT RESULTS OF TAXATION MANAGEMENT TOTAL SETTLEMENTS Corporation Tax VAT Withholdings
9.652 55.579 49.040
TOTAL SETTLEMENTS
114.271
REDUCTION FOR REFUNDS AND COMPENSATION Corporation Tax VAT Other taxes
26.189 292.563 0.019
TOTAL REDUCTIONS
318.771
REDUCTION FOR NEGATIVE Corporation Tax Grup of companies TOTAL REDUCTIONS TOTAL SETTLEMENT RESULTS
2.338 68.468 70.806 503.848
It only includes those settlements previously contracted and reductions in refunds and refunds, without including the amounts from other activities such as the processing of sanctions, interest for late payments, etc. which would increase the result substantially. Amount in millions of Euros
5.1.4. Control activities on the Intrastat tax returns During 2006, the provincial Intrastat offices continued their control tasks for compliance with the Intrastat statistical obligations, both by issuing the corresponding demands for non-compliance and by means of cleaning the quality of the statistical data, fundamentally by means of sending demands for formal errors in the declarations and in the communication of average prices. As a result of this control performed by the Provincial Intrastat offices, the number of demands for non-compliance decreased by 9%. Communications of average prices are sent to those operators whose tax returns contain data
that appear incorrect from the point of view of the relationship between the goods code, the weight or number of units and the value declared. The trend, already indicated in previous years, both in the reduction in the number of demands for errors (38%) and in the reduction in the number of communications for average prices (2%) has continued. The operators, having exact and timely knowledge of the errors and inconsistencies, increasingly resolve them without the need to send out demands. At the same time, section 9 of Act 36/2006 of 29 November on measures for the prevention of tax fraud has granted the exercise of disciplinary
69
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
power for infringements against the statistics of exchange of goods between Member States of the European Union to the Department of Customs and Excises (from the State Agency for Tax Administration). 5.1.5. Management and auditing activities on Excises The management and auditing activities on Excises are characterised by involving both prior checks and checks simultaneously with the time of the tax event. This is motivated because in these cases the high tax rate combines with
exemptions, exceptions and tax refunds depending on the destination with non-monetary taxable bases. In the performance of their duties, the auditors perform prior activities in order to regularise the tax situation of the taxpayers they are checking. The performance of prior actions is motivated by the fact that the checking of accounts is limited to the registers required by law and the Regulation of Excises. The results of this auditing activity undertaken in 2006 is reflected in the following table:
INTERVENTION ACTIVITY
2005
2006
% VARIATION 2006/2005
Number of actions Documented Cases Audit Reports formulated Sanction files
117,807 10,515 117 254
128,702 10,032 182 355
9.25 -4.59 55.55 39.76
TOTAL
128,693
139,271
8.22
During 2006, an increase in the number of auditing actions was made to promote the work for preventing tax fraud.
70
More laborious activities with greater complexity were completed, such as the stocktaking and accounting tables which indicate a higher prevention activity.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
5.2. Selective checking and investigation activities In 2006, the orientation of the Fraud Prevention Plan was consolidated, devoting more resources to it and to new units for the fight against more complex and more socially reprehensible tax fraud, reinforcing the investigation activities against possible offences and organised tax fraud schemes. On occasion, the execution of these activities requires the exercise of powers of judges and prosecutors and the close collaboration of the judicial police. In consequence, the number of traditional selective control activities has decreased in order to increase their quality and depth and the number of people devoted to in-depth investigation has been significantly increased. The result has been an increase in the amount of settled debt and a strong increase in investigation
activities on organised offences, which has given rise to a significant increase in the number of late tax returns filed, of precautionary measures adopted to assure the collection of the amounts defrauded, the reduction in the number of requests for VAT refund in the sectors investigated, etc. The activities related with the new forms of investigation enable the discovery of significant volumes of fraud, the quantification of which is difficult to specify as these activities are currently sub judice. In addition, in 2006, the direct collection effect or tax collections from activities performed to regularise tax non-compliance, which includes the income from the control activities and the reduction in refunds, increased by 15.1% compared with 2005.
DIRECT COLLECTION EFFECT 2005
2006
4,613
5,310
VARIATION 06/05 15.1%
Amount in millions of Euros.
5.2.1. Auditing activities (traditional control) Following the integrating principle of the activities that promoted the Fraud Prevention Plan, the aggregated data corresponding to the auditing activities performed in 2006 on domestic taxes, taxes on foreign trading operations and Excises are presented below.
The increased depth of the activities and the selection of the taxpayers with the highest turnover and greater auditing complexity has resulted in a reduction in the number of taxpayers checked, but at the same time an increase in the amount of settled debt because of the restatements made and the preferential concentration on the sectors of highest risk.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
AUDIT DEPARTMENT 2004
2005
2006
Number of tax payers audited
34,994
33,153
27,345
Number of audit reports
79,502
79,567
71,679
3,567.47
3,869.37
3,932.66
Debt settled* *Amount in millions of Euros.
One sector for preferential scrutiny for the inspection services is the real estate sector, and
there has been an increase in 86% in audits made, achieving a strong increase in settled debt.
INSPECTION ACTIVITIES IN THE PROPERTY SECTOR
Number of taxpayers checked Debt settled*
2004
2005
2006
VARIATION 06/05
VARIATION 06/04
2,366
3,498
6,516
86%
175%
373,255
551,874
741,323
34%
98%
*Amount in thousands of Euros.
5.2.2 New selective investigation and tax offence activities The new forms of working in activities for the audit of fraud and an improved distribution of resources has enabled the undertaking of specially complex investigation activities and the
72
discovery of very significant volumes of fraud, the auditing of assets and the adoption of precautionary measures for the future recovery of defrauded debts. These activities do not always culminate in court proceedings but have a strong impact on the voluntary compliance with tax obligations.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
In 2006, focusing attention on the sectors particularly at risk from fraud (computer components, telephone materials, buying and selling of gold, top-of-the-range cars, etc.), indepth investigations were performed for the discovery of fraud schemes in VAT and other taxes, trust fund operations, money laundering, issue and sale of forged invoices, etc. At an initial estimation, the uncovered fraud exceeds 3,000 million Euro. In many cases, the activities result in judicial assistance, Supreme Court or corresponding courts.
Other results of selective control Controls of the applications to join the Register of Intracommunity Operators In order to prevent the appearance of companies involved in organised fraud in intracommunity operations, the controls on the applications to join the Register of Intracommunity Operators have been reinforced. The applications have been subjected to rigourous review and a total of 5,107 were denied, as shown in the following table.
CONTROL OF NEW REGISTRATIONS ON THE REGISTER OF INTRACOMMUNITY OPERATORS
Applications for new registrations Taxpayers visited and analysed in depth Denials of access
2005
2006
36,013
52,527
18,082
36,906
5,098
5,107
VARIATION 06/05 45.85% 104.10% 0.18%
Late tax returns In addition to the discovery of important frauds, these in-depth investigation activities have the side effect of a strong increase in the number of voluntary restatements by means of the presentation of late tax returns.
In addition to 10.19% more late tax returns being filed than in 2005, these have been for much higher self-assessed amounts (20.05%) than in the previous year.
*Amount in millions of Euros.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
Impact of these activities in sectors receiving priority attention A significant reduction has also been noticed in the number of requests for VAT refunds in the sectors in which activities to prevent fraudulent schemes have been most active. Specifically, the number of VAT refund requests in the telephony
and computing sectors have reduced very considerably, sectors which were earmarked for preferential investigation by the Tax Agency. In these sectors, the request for VAT refund is one of the main routes of fraud.
CHANGES IN REQUESTS FOR VAT REBATES 2003
2004
2005
2006
IT components
30%
-54%
-24%
-52%
Telephony
30%
-63%
-18%
-53%
Other checking activities In order to encourage proper tax control, it is necessary to capture, request and manage specific information with tax implications,
checking or improving on what is obtained from the various tax return Forms filed by the taxpayers, fundamentally the informational forms.
REQUIREMENTS AND DATA CAPTURE (Amount of data obtained)
A) TOTAL NUMBER OBTAINED AT 31-12-06
17,396,939
B) BREAKDOWN BY THE DATA CAPTURE BODY: 17,126,140
CENTRAL INFORMATION TEAM (ECI)
270,799
AGENCY DELEGATIONS C) COMPARISON WITH PREVIOUS YEARS: 2004 ECI Tax Agency Delegations TOTAL
74
2005
2006
13,880,507
18,629,043
17,126,140
25,258
522,923
270,799
13,905,765
19,151,966
17,396,939
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
The following tables reflect the importance for the Tax Agency of exchanging information with
Tax Agencies of other countries within the framework of control actions.
EXCHANGE OF INFORMATION WITH OTHER COUNTRIES, DIRECT TAXES
EXCHANGE OF INFORMATION FOLLOWING REQUEST (1) FROM SPAIN TO THIRD COUNTRIES
FROM THIRD COUNTRIES TO SPAIN
169
440
Information requests
(1) The figures refer to the number of proceedings handled, independently of the number of taxpayers affected and the activities undertaken. Spain's petitions have been sent to 25 countries, 80% of which are concentrated in EU member states; of the 440 forms received, 85% are from member states
AUTOMATIC EXCHANGE OF DATA FOR DIRECT TAXES Number of cases:
Number of taxpayers:
DATA SENT TO OTHER COUNTRIES (2)
25
1,854,821
DATA RECEIVED FROM OTHER COUNTRIES (3)
25
596,730
DATA EXCHANGED SPONTANEOUSLY FOR INDIRECT TAXES (4) Number of cases: DATA SENT TO OTHER COUNTRIES (5) DATA RECEIVED FROM OTHER COUNTRIES (6) (2) (3) (4) (5) (6)
The The The The The
Number of taxpayers:
46
48
168
3,452
proceedings affect 20 countries. proceedings affect 17 countries. data are fundamentally from Form 296 and the 2005 tax year. proceedings affect 5 countries. proceedings affect 16 countries.
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II.-
REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
MUTUAL ASSISTANCE FOR VAT
FOLLOWING REQUESTS (NOT PART OF PROCESSES) FROM SPAIN TO THIRD COUNTRIES Information requests
FROM THIRD COUNTRIES TO SPAIN
488
2,104
OTHER REQUESTS RECEIVED VAT numbers (cases processed)
501
-
Various requests
105
-
FROM SPAIN TO THIRD COUNTRIES
FROM THIRD COUNTRIES TO SPAIN
FOLLOWING REQUESTS (PART
Information requests
765
2,670
WITHOUT PRIOR REQUEST (NOT PART OF PROCESSES) FROM SPAIN TO THIRD COUNTRIES Sending of information (spontaneous) without prior request
FROM THIRD COUNTRIES TO SPAIN
26
438
110
317
WITHOUT PRIOR REQUEST (PART OF PROCESS) Sending of information (spontaneous) without prior request
AUTOMATIC INFORMATION(1)
VAT numbers assigned (2) VAT numbers cancelled VAT returns to non-established persons (3)
SENT BY SPAIN
RECEIVED BY SPAIN
2,573
335
2,326
—
37,927
12,215
New vehicles
—
151
Missing Traders (4)
—
277
(1) Corresponds to the commitments assumed by Spain for sending automatically, without previous request, specific information, and logically the automatic receipt of such information. The number of files sent and received are listed. (2) Assigned to taxpayers of other member states, in the case of information supplied by Spain and assigned to Spanish citizens in the case of information received. (3) Refunds to Spanish citizens in the case of information received and refunds to citizens outside Spain in the case of information supplied by Spain. (4) Operators implicated in community VAT defrauding schemes on which action has to be taken rapidly before they disappear.
76
REPORT
2006
II.SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
Tax offences In relation to conduct that may be presumed a tax offence or generally offences of fraud against the Public Treasury, during 2006 the Tax Agency has continued to advance on the lines laid out by the Tax Fraud Prevention Plan. In order to guarantee the effectiveness of the fight against the most complex and serious tax
fraud, at times the investigation activities performed by the Tax Agency require their swift reporting to the Tax Ministry so that agreement with judicial bodies can be reached to undertake more specific verification activities. The activities of the Tax Agency in 2006 gave rise to the reporting of 710 alleged tax offences, estimated at 659.90 million Euro in defrauded tax.
ALLEGED TAX OFFENCES REPORTED
YEARS
Total tax offences NUMBER
AMOUNT*
2005
793
926.86
2006
710
659.90
* Amounts in millions of Euros.
77
II.-
REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
Tax Offence Observatory In order to strengthen the efficiency of the fight against tax offences, the agreement dated 30 June 2005 between the Tax Agency and the State Department of Justice on tax fraud prevention set up an observatory with the job of acting as a forum for monitoring the effectiveness of complaints and lawsuits lodged, for studying proposals and suggestions for reforming the concept of tax offence and other types of fraud against the Tax Administration and for studying measures to improve the results of the fight against fraud in the penal system. In its first report, the observatory states that the number of guilty verdicts, either total or partial, is clearly higher than the number of acquittals, the analysis of which highlights the importance of reinforcing the investigation and documentation of the facts.
organised tax crime, conspiracies, and especially those aimed at defrauding by manipulating VAT and certain Excises, which tend to involve increasingly sophisticated professional fraud activities, whose detection and efficient eradication requires classic legal instruments and the powers of the tax authorities to be updated, and their investigative powers to be suitably strengthened. Export Refunds and Reduction in Refunds Some of the actions carried out in the area of tax audit applied to external trade operations are not reflected in previously contracted debt, such as Export Refunds and Reduction in Refunds. In the area of export refunds in 2006, 51 checks were carried out, to the sum of 12.016 million Euro.
The report also draws conclusions about the particularly damaging and worrying nature of
COMPENSATION FOR EXPORTS 2005
78
2006
Number ACTIVITIES
DEBT Mill. euros
Number ACTIVITIES
DEBT Thousand euros
DEBT % 06/05
41
14.078
51
12.016
-14.65
II.- SUMMARY OF
REPORT
2006
OPERATIONS
5. TAX AND CUSTOMS CONTROL
The Checking Plan to be carried out in the area of refunds is fixed each financial year by the General State Comptoller.
carried out have observed a reduction in this type of irregularities, which explains the reduction in uncovered debt in 2006.
The most significant irregularities discovered in 2005 and 2006 are in the export of meats, which due to the diversity and geographic dispersion of the agents participating the irregularities, a policy of centralised control has been put into place by the Department's Investigative Services. The most recent checks
In the area of mutual assistance activities, legally based on Regulation (EC) 515/97 and on the agreements signed to that effect with the European Union and third countries, the following collaborative actions have been carried out:
COOPERATION
AT THE REQUEST OF SPAIN
AT THE REQUEST OF MEMBERS STATES
WITH MEMBER STATES
26
131
WITH THIRD COUNTRIES
29
226
5.2.3. Customs Surveillance Actions In addition to taking part in new actions of selective investigation and tax offences, described in the previous section, it carries out two types of tasks. Control tasks such as detection of smuggled goods in customs areas, apprehending ships transporting cocaine, reporting money laundering crimes and seizing goods that infringe industrial or intellectual property rights. In addition, preventive tasks such as patrolling with boats in order to discourage the possible entry of smuggled
goods and sealing off establishments and manufacturing equipment in order to prevent evasion of special excises. Some of the results achieved are detailed below: The total value of goods seized, discovered and confiscated by Customs Surveillance bodies in 2006 reached 3,860.58 million Euro. In the fight against drugs smuggling, 148.9 tons of hashish and 32.6 tons of cocaine were seized, the biggest number ever of seizures of this last substance, and 12 open sea operations.
79
REPORT
2006
II.-
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
In the fight against tobacco smuggling, 2006 was also the best year since records began, with 15,175,552 packets of cigarettes seized (an 87% increase on 2005, with 65% of the confiscated product being fake). Of 6,532 cases of smuggling brought to court, 5,971 were criminal cases and 561 were administrative offences. 1,979 actions not related to smuggling were carried out, 549 of which were for money laundering. In the area of the fight against money laundering and tax fraud, 77 reports were conducted, 30.5% more than in the 2005 financial year, and with an increase in monetary value of 36.6%. In the area of excises, 7,743 procedures were carried out.
80
As a result of the activity carried out, 1,744 people were detained or found guilty (1,594 for smuggling and the remaining 150 for other offences). It is also appropriate to highlight the participation of the Tax Agency in the Joint Customs Operations that are co-ordinated from within the Council's Customs Co-operation Group. These Operations have been carried out for many years, at first in a bilateral or regional way between a few countries, and over time participation has increased on a Europe-wide level. It has been demonstrated that they are the best instrument for strengthening co-operation between Customs Administrations in their work to fight against fraud and organised crime. The Tax Agency takes an active part in the majority of these large scale Joint Customs Operations. It has also organised several of them over the last few years.
II.- SUMMARY OF
REPORT
2006
OPERATIONS
5. TAX AND CUSTOMS CONTROL
5.2.4. Analytic control carried out in the Customs Laboratories The following table shows the analytic control activity carried out in Customs laboratories of
samples from goods destined for external trade or subject to the Special Taxes regulations: CHANGES IN NUMBER OF SAMPLES ANALYSED
NUMBER OF SAMPLES
LABORATORY 2004
2005
2006
CENTRAL
7,522
8,278
8,246
BARCELONA
2,734
2,396
2,292
202
79
SEVILLE
1,049
1,309
1,605
VALENCIA
1,232
1,730
1,990
12,739
13,792
14,133
IRÚN(1)
TOTAL (1) Laboratory closed in 2005.
5.3. Tax Collection Management This section analyses the management of tax collection carried out by the Tax Agency of tax debts and fines owed to the Agency and not voluntarily paid, and the public resources of other bodies which it is responsible for collecting
by law or agreement. The following table shows a summary of the activity carried out in 2006, broken down according to the Bodies issuing the debt to be managed. GENERAL MANAGEMENT SUMMARY 2006, NATIONAL TOTAL
ISSUING BODIES
PENDING 01/01/2006
LOADED DURING 2006
TAX AGENCY DEBTS
7,416.22
3,891.20
11,307.42
3,564.20
7,743.22
DEBTS BETWEEN ENTITIES
1,156.24
1,131.87
2,288.10
947.64
1,340.46
TOTAL
8,572.46
5,023.07
13,595.52
4,511.84
9,083.68
TOTAL TO MANAGE
AWAITING TOTAL MANAGEMENT MANAGED AT 31/12/06
Amounts in millions of Euros.
81
II.-
REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
The enforced collection period is started in the event that a debt is not paid during the voluntary period. Notification of an enforced collection ruling is carried out, and the enforced collection procedure is started. Enforced collection rulings issued during the 2006 financial year reached the sum of 5,023 million Euro; 77% of this total corresponded to debts to the Tax Agency and the rest to other bodies.
5.3.1. Debts from settlements carried out by the Tax Agency The distribution by origin of the total debt to be managed is shown in the following table:
COLLECTION MANAGEMENT FOR TAX AGENCY DEBTS 2006, DISTRIBUTION BY ORIGIN OF THE DEBT
PENDING AT 01/01/2006 AUDIT REPORTS RECOGNITION OF DEBTS
IN THE YEAR
4,076.03 1,605.30
1,473.73 1,097.85
TOTAL CHARGE 5,549.75 2,703.15
TOTAL PENDING AT 31/12/06 MANAGED 1,501.31
4,408.45
1,036.95
1,666.19
OTHER TAX AGENCY SETTLEMENTS
TOTAL
1,734.90
1,319.62
3,054.52
1,025.94
2,028.58
7,416.23
3,891.20
11,307.42
3,564.20
7,743.22
Amounts in millions of Euros.
5.3.2. Debts to Other Bodies The Tax Agency also carries out the enforced collection of tax collection of the resources of other State bodies and Autonomous Organisations in addition to the resources of other Public Administration organisations or Bodies, for which it is responsible by law or agreement.
82
Thus, in 2006 it carried out tax collecting activities for a total of 120 external bodies, including 63 Autonomous Organisations, 16 Autonomous Communities, a Provincial Government, two Local Bodies and 38 Public Bodies. The debts settled by the various ministerial Departments by the enforced collection process should also be added to this.
II.- SUMMARY OF
REPORT
2006
OPERATIONS
5. TAX AND CUSTOMS CONTROL
MANAGEMENT CARRIED OUT IN 2006 RELATED TO DEBTS OF OTHER BODIES. BREAKDOWN BY ISSUING ENTITY
PENDING AT 01/01/2006
2006
TOTAL CHARGE
TOTAL MANAGED
TOTAL MANAGED AT 31/12/06
OFFICIAL BODIES
439.95
431.56
871.51
362.30
509.20
AUTONOMOUS COMMUNITIES
350.11
332.20
682.30
315.73
366.58
38.42
40.38
78.79
39.01
39.78
327.76
327.74
655.50
230.60
424.90
1,156.24 1,131.88
2,288.10
947.64
1,340.46
ENTES ISSUING BODIES
PUBLIC ENTITIES REST
TOTAL ENTITIES Amounts in millions of Euros.
MANAGEMENT OF DEBT OF OTHER ENTITIES 2006. BREAKDOWN BY ISSUING ENTITY
24.33%
28.65%
38.23%
38.09%
4.12% 3.44%
29.82%
TOTAL CHARGE
33.32%
TOTAL MANAGED
OFFICIAL BODIES
PUBLIC BODIES
AUTONOMOUS COMMUNITIES
REST
83
II.-
REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
ORIGINS OF THE CHARGES OF OTHER BODIES IN 2006
IN MILLION EUROS
ISSUING BODIES AUTONOMOUS. COMMUNITY. OF ANDALUCÍA
38.16
AUTONOMOUS. COMMUNITY. OF ARAGÓN
18.09
0.79%
AUTONOMOUS. COMMUNITY. OF PRINCIPALITY OF ASTURIAS
1.70
0.07%
AUTONOMOUS. COMMUNITY. OF BALEARIC ISLANDS
9.44
0.41%
1.67%
AUTONOMOUS. COMMUNITY. OF THE CANARY ISLANDS
0.44
0.02%
AUTONOMOUS. COMMUNITY. OF CANTABRIA
4.10
0.18%
AUTONOMOUS. COMMUNITY. OF MANCHA
42.63
1.86%
AUTONOMOUS. COMMUNITY. OF CASTILLA Y LEÓN
46.86
2.05%
293.81
12.84%
5.80
0.25%
AUTONOMOUS. COMMUNITY. OF CATALONIA AUTONOMOUS. COMMUNITY. OF EXTEMADURA AUTONOMOUS. COMMUNITY. OF GALICIA
7.12
0.31%
AUTONOMOUS. COMMUNITY. OF MADRID
109.46
4.78%
AUTONOMOUS. COMMUNITY. OF MURCIA
2.14
0.09%
AUTONOMOUS. COMMUNITY. OF BASQUED COUNTRY
3.81
0.17%
AUTONOMOUS. COMMUNITY. OF LA RIOJA
1.02
0.04%
AUTONOMOUS. COMMUNITY. OF VALENCIA
94.73
4.14%
TRAFFIC DEPARTMENT
536.93
23.47%
HYDROGRAPHIC CONFERENCE OFFICIAL BODIES
203.25
8.88%
42.09
1.84%
1.34
0.06%
22.28
0.97%
EMPLOYMENT SERVICES (INEM). AIRPORT AUTHORITY PORT AUTHORITIES HIGH COUNCIL OF CHAMBERS OF COMMERCE OTHER OFFICIAL BODIES
2.01
0.09%
53.16
2.32%
MINISTERIAL DEPARTMENTS AND OFFICIAL BODIES EXTERNAL TO THE TAX AGENCY747.75
TOTAL
The external bodies with the greatest sum of debts managed by the Tax Agency in 2006 were: the Autonomous Traffic Office Organisation (23.47%) and the group of Hydrographic Confederations (8.88%).
84
PERCENTAGE
2,288.10
32.68%
100.00%
In terms of Autonomous Communities, Catalonia, Madrid and Valencia are notable for having the highest sum of debts managed by the Agency during 2006.
REPORT
2006
II.- SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
5.3.3.Management of Public fees The Tax Agency is responsible for managing the collection of this public income and also for the effective collection of taxes managed by Ministerial Departments and Autonomous Organisations within the relevant period of administration.
In 2006 the net amount collected in taxes managed by the various Ministerial Departments and Autonomous Organisations of the General State Administration are detailed in the following table:
IN THOUSANDS OF EUROS
IN THOUSANDS OF EUROS THROUGH COLLABORATING ENTITIES* THROUGH RESTRICTED ACCOUNTS**
1,003,593.88 585,929.31
THROUGH COMMERCIAL STAMPS
34.43
CONSULAR FEES
21,312.67
REVENUE FROM TAX AGENCY DELEGATIONS
60,032.31
TRANSFER OF REVENUE REFUNDS ISSUED
TOTAL
125,375.31 -3,096.06
1,793,181.85
Amounts in millions of Euros. * Total collected by collaborating Bodies for taxes managed by Ministerial Departments and Autonomous Organisations. ** Total collected through restricted accounts corresponding to Ministerial Departments and Autonomous Organisations.
5.3.4. Other actions related to the control of the collection process Within the framework of mutual assistance between European Union member countries, in 2006, the Tax Agency received 58 notification requests, 164 requests for information, 8 requests for adoption of precautionary measures and 743 requests for collection.
In terms of administration, there was an increase of over 30% in the number of proceedings in which the Tax Agency collected on behalf of other European Union member States, with an increase in the total amount collected of almost double.
85
R E P O R T
2006
III.- Opinion and Participation of Citizens
87
REPORT
III.-
2006
OPINION AND PARTICIPATION OF CITIZENS
1. STUDIES AND OPINION POLLS
C itizens are the recipients of the majority of the services given by the Tax Agency and their opinion of the service provided is a very valuable tool in the decision making process. The perception and opinion held by citizens of the services provided by the Tax Agency are revealed through a range of studies prepared by public bodies not connected to the Tax Agency. 1.1. Public Opinion and Tax Policy (Sociological Research Centre) The study entitled Public Opinion and Tax Policy is carried out on an annual basis by the Ministry of the Presidency through the Sociological Research Centre and contains various questions for citizens related to the Tax Agency. This study is prepared based on a sample of two thousand five hundred interviews carried out nation-wide. The Tax Agency's information and assistance
services have been awarded a very high mark and there is a high level of satisfaction with the treatment and service received from staff in the Tax Agency's offices. In 2006, 84.8% of people surveyed stated that they were satisfied or very satisfied with the treatment and service received in the offices of the Tax Agency and 70.1% stated that the Tax Agency's information and assistance service was, in their opinion, good. The following table shows the evolution since 1997 of the results of surveys on services provided.
DEGREE OF SATISFACTION WITH TREATMENT AND SERVICE IN TAX AGENCY OFFICES
%
1997 1998
1999 2000 2001 2002 2003 2004 2005 2006
Very satisfied / satisfied
79.2
84.2
80.7
83.2
81.2
82.9
85.5
82.8
82.5
84.8
OK
10.2
6.4
8.5
8.6
11.6
9.1
6.9
9.2
8.4
6.7
Not satisfied / very dissatisfied
10.2
9.1
10.4
8.0
7.1
7.8
7.3
8.0
8.6
8.1
0.4
0.4
0.4
0.2
0.1
0.2
0.3
0.0
0.5
0.3
Don’t know / No answer
PUBLIC OPINION ON TREATMENT AND SERVICE RECEIVED
88
%
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Has improved
63.3
62.5
60.1
55.3
52.2
56.3
56.4
51.1
54.8
51.3
The same
23.1
21.7
24.4
29.1
34.7
31.6
33.3
33.7
31.6
37.2
Got worse
2.9
2.5
3.0
2.6
2.4
2.2
1.5
3.3
1.9
2.0
Don’t know
9.5
12.4
12.3
13.0
10.0
9.7
8.4
10.9
10.5
9.2
No answer
1.3
0.8
0.2
13.0
0.6
0.2
0.4
1.00
1.2
0.3
III.-
REPORT
2006
OPINION AND PARTICIPATION OF CITIZENS
1. STUDIES AND OPINION POLLS
WHAT IS YOUR OPINION OF THE INFORMATION AND TAX PAYER ADVICE SERVICE
%
1997 1998
1999
2000
2001
2002
2003
2004
2005
2006
Good
67.6
71.9
71.0
69.6
69.0
71.0
73.0
69.3
69.3
70.1
OK
24.7
20.9
20.8
23.5
24.3
23.1
19.6
24.1
22.8
24.2
Bad
5.1
5.6
6.2
5.3
5.1
4.6
6.1
5.0
6.0
5.0
Don’t know/No comment
2.6
1.6
2.0
1.6
1.6
1.2
1.3
1.6
1.9
0.6
1.2. Public Opinion and Taxation (Institute for Fiscal Studies) Within the Secretary of State for Finance and Budget, the Institute for Fiscal Studies is the organisation that, with the collaboration of the Tax Agency, prepares the annual national study known as the "Tax Barometer". The data show the evolution of opinions up to 2006. The study is carried out on a sample of one thousand five hundred citizens, spread over five segments (business owners, farmers, professionals, salaried workers and the unemployed) and selected by quotas of habitat, sex, age and socio-economic category (studies and income), using the personal interview technique.
Within the "Tax Barometer" the population's degree of knowledge about the services provided by the Tax Agency should be highlighted, reaching 67%, whilst the extent to which its services are used stand at 37%. The evaluation of the services provided is very positive, with 85% of those surveyed giving positive feedback. This study also surveys the opinion of citizens on Tax Agency civil servants, who are considered to be good specialists, impartial in carrying out their duties and courteous. The following table shows the data available since 2000 for services provided by the Tax Agency.
KNOWLEDGE AND USE OF THE TAX AGENCY’S SERVICES
(%)
2000
2001
2002
2003
2004
2005
2006
Knowledge
56
56
56
61
65
65
67
Use
21
28
29
31
35
35
37
89
REPORT
III.-
2006
OPINION AND PARTICIPATION OF CITIZENS
1. STUDIES AND OPINION POLLS
OPINIONS RELATING TO TAX AGENCY SERVICES
2000
2001
2002
2003
2004
2005
2006
Negative (%)
15
9
13
18
16
18
15
Positive (%)
85
91
87
82
84
82
85
Average rating from 1-4
2,9
3,1
3,0
2,9
2,9
3,0
2,9
OPINIONS RELATING TO TAX AGENCY CIVIL SERVANTS
Average rating from 1-7
90
2000
2001
2002
2003
2004
2005
2006
Impartiality
4.5
4.8
4.5
4.7
4.6
4.6
4.7
Technical training
4.7
5.0
4.7
4.9
5.0
5.0
4.9
Appropriate treatment
4.6
4.9
4.6
4.8
4.7
4.7
4.7
Concern about problems
3.9
4.0
4.1
3.7
3.7
3.9
3.7
REPORT
2006
III.-
OPINION AND PARTICIPATION OF CITIZENS
2. SUGGESTIONS
Suggestions Box for the Tax Fraud Prevention Plan The Suggestions Box for the Tax Fraud Prevention Plan was set up in order to facilitate the direct participation of citizens and associations representing them in the process of defining the Agency's strategy in its mission of preventing and correcting tax fraud, In 2004, citizens, tax management professionals, business associations, etc. were able to participate in drawing up the Fraud Prevention Plan, the draft of which was published on the Internet together with a Suggestions Box.
The suggestions received (over 500) and their evaluation by the Tax Agency can be consulted on the website (classified by subject and in chronological order). In addition, once the Fraud Prevention Plan was approved, a permanent Suggestions Box was opened for all citizens to use. During the period February to December 2005, 642 suggestions were received in this Box. In 2006, 732 suggestions were received.
91
R E P O R T
2006
IV.- Appendix of Statistics
93
REPORT
IV.-
2006
APPENDIX OF STATISTICS
COLLECTIONS MANAGED
TAX COLLECTION MANAGED BY THE TAX AGENCY (in thousand million euros) 240 221.41 220 200 183.31 177.68
180
179.38
165.45 160
151.16 143.31
141.80 140
150.79
132.27 121.46
132.33
114.75
120
124.91
103.80 100
114.55
92.30
107.89
86.10
99.97
79.44
92.23
80 60
85.10 68.00
72.90
73.73 41.89
40 20
11.45
13.20
16.07 18.70
22.64
21.37
24.39
1998
1999
2000
27.44
28.32
33.12
34.37 32.52
0 1994
1995
1996
1997 Gross
Data on pages 30 and 41.
94
Net
2001
2002
2003
Refunds
2004
2005
2006
IV.-
REPORT
2006
APPENDIX OF STATISTICS
INFORMATION AND ASSISTANCE
ON-LINE INCOME TAX RETURNS
4,000,000
3,775,468
3,500,000 2,982,894
3,000,000
2,319,764
2,500,000
1,721,538
2,000,000 1,500,000
1,151,313
1,000,000 500,000
497,789 21,559
115,244
1999
2000
0
2001
2002
2003
2004
2005
2006
Data on page 48.
TELEPHONE CALLS ANSWERED ON BASIC TAX INFORMATION
8,000,000 7,217,250 7,000,000 5,750,511 5,488,700 6,000,000 5,003,317 5,000,000 4,040,539 5,433,189 5,476,178 5,039,327 4,000,000 3,197,197 2,852,835 3,000,000 3,211,253 2,000,000 1,875,450 1,000,000 0 892,863 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Data on page 55.
95
REPORT
IV.-
2006
APPENDIX OF STATISTICS
INFORMATION AND ASSISTANCE
ACCESS TO INFORMA
5,000,000 4,727,070 4,500,000 4,000,000 3,427,131 3,285,071 3,500,000 3,027,517 3,301,613 2,686,268 3,000,000 2,615,930 3,169,421 2,984,408 2,500,000 1,856,640 2,630,592 2,000,000 2,068,397 1,500,000 1,000,000 1,558,368 500,000 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Data on page 56.
SENDING OF PERSONAL TAX DATA AND PRE-POPULATED TAX RETURN
16,000,000 15,083,091
15,000,000 14,000,000 13,000,000 12,000,000
11,801,018
11,000,000 10,000,000 9,000,000 8,000,000
7,370,575
7,000,000 6,000,000
5,422,459
5,000,000 4,000,000 3,000,000 1,603,758
2,000,000 1,000,000
2,601,416
1,133,230 335,946
640,900
0 1998 Data on page 56.
96
1999
2000
2001
2002
2003
2004
2005
2006
IV.-
REPORT
2006
APPENDIX OF STATISTICS
INFORMATION AND ASSISTANCE
VISITS TO THE WEBSITE www.agenciatributaria.es
200,000,000
193,876,355
180,000,000 160,000,000
158,707,029
140,000,000 132,248,498
120,000,000 100,000,000 80,000,000
78,488,451
60,000,000 45,408,011
40,000,000 20,000,000
5,777,514 8,108,944 163,048 1,497,222
18,322,044
0 1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Data on page 2.
COOPERATION AGREEMENTS AND PROTOCOLS SIGNED FOR THE ELECTRONIC PRESENTATION OF TAX DECLARATIONS
250 199
200
196 162
150
129
100
63
52
50
68
77
2000
2001
118
24
0 Antes 1998 de 1998
1999
2002
2003
2004
2005
2006
Data on page 21.
97
REPORT
IV.-
2006
APPENDIX OF STATISTICS
INFORMATION AND ASSISTANCE
NUMBER OF PAYMENT POSTPONEMENTS REQUESTED
580,000 558,159
560,000
565,931
540,000 520,000
501,318
503,650
479,277
491,163
480,000
499,246
492,373
500,000
488,243
473,600
475,836
460,000
490,594
453,640
440,000 420,000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Data on page 60.
AMOUNT OF INSTALMENTS REQUESTED (in million euros)
5,000
4,974.97
4,500 4,000 3,500
3,035.59
3,000
3,390.98 2,996,00
2,725.16 2,315.31
2,500
2,222.00
2,572.13
2,000
2,854.95
2,472.00 1,830.50
1,500
3,307.78
1,854.21
1,000 500 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Data on page 60.
98
IV.-
REPORT
2006
APPENDIX OF STATISTICS
TAX AND CUSTOMS CONTROL
NUMBER OF HOMOGENEOUS CONTROL ACTIVITIES SELECTION AND INVESTIGATION 2006
120,000 116,651 100,000 80,000
64,670
60,000
46,402
40,000 16,120
20,000
10,526
0 Domestic Taxes
Tax on foreign trade and Excises
Real Estate Sector
Bands of fraud and false invoices
Customs and Excises Operational
Data on page 30.
HOMOGENEOUS EXTENSIVE CONTROL ACTIVITIES 2006
5,000.000 4,500.000 4,000.000
4,210,445
3,500.000 3,000.000 2,500.000
1,995,416
2,000.000 1,500.000 1,000.000 500.000
147,022
0 Domestic taxes and modules
Large Companies
Customs Management and Excises Management and Intervention
Data on page 30.
99
REPORT
IV.-
2006
APPENDIX OF STATISTICS
TAX AND CUSTOMS CONTROL
DEBT COLLECTION MANAGEMENT 2006 (in millions of euros)
3,500.00 3,000.00
3,189.099
2,936.518 2,418.833
2,500.00 2,000.00 1,500.00 1,000.00 500.00 0.00 Revenue through Enforced Collection Total data on page 30.
100
Voluntary payments
Activities without revenue
IV.-
REPORT
2006
APPENDIX OF STATISTICS
TAX AND CUSTOMS CONTROL
SUPPRESSION OF CONTRABAND: VALUE OF MERCHANDISE (in millions of euros)
5,000 4,328.16
4,500
3,860.58
4,000 3,500 2,581.64
3,000 2,387.00
2,500
2,732.79
3,254.28
2,054.94
2,000 1,500
3,367.48 3,906.77
1,755.56 1,362.91
1,000
1,246.72 948.59
500 0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Data on page 79.
101
2006 I O
I
II
III
IV
N F
C
D H A
E P
T
E
R
X S
The Tax Agency
1
Summary of Operations
33
Opinion and participation of citizens
87
Appendix of Statistics
93
R E P O R T
2006 I
I.
N
D
E
THE TAX AGENCY
X
1
1. MISSION.
2
2. THE TAX AGENCY IN FIGURES.
3
3. ORGANISATIONAL STRUCTURE.
4
4. BUDGETS: REVENUE AND EXPENSES
8
5. HUMAN RESOURCES.
11
6. INFORMATION AND COMMUNICATION TECHNOLOGY.
15
7. ALLIANCES. INSTITUTIONAL RELATIONS. 7.1. Autonomous Communities. 7.1.1. Autonomous Communities under general regime.
17 17 17
7.1.2. Relationship between the Tax Administrations under special (Foral) regime. 7.2. Local Entities.
19
7.3. Co-operation agreements.
20
7.3.1. Social Co-operation.
20
7.3.2. Other co-operation Agreements.
21
7.4. International Relations.
22
7.4.1. Technical Co-operation.
23
7.4.2. Training activities.
27
7.4.3. Exchange of experiences with other Administrative Bodies.
27
8. PLANNING OF ACTIVITIES. 8.1. Planning and programme of activities for 2006.
II.
19
28 28
8.1.1. Objectives Plan 2006.
28
8.1.2. General Taxation Control Plan 2006.
31
8.1.3. Commitments of Central Services for 2006.
31
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS.
33 34
1.1. Personal Income Tax.
35
1.2. Corporation Tax.
36
1.3. Non-resident Income Tax.
37
1.4. Value Added Tax.
37
1.5. Excises.
39
1.6. Fees and other income.
39
R E P O R T
2006 I
N
D
E
X
1.7. Net Tax Collection 2006. Refunds.
40
1.7.1. Personal Income Tax.
40
1.7.2. Corporation Tax.
42
1.7.3. Non-resident Income Tax.
42
1.7.4. Value Added Tax.
42
1.8. Direct Tax Effect.
44
2. TAX ROLL.
45
3. TAX RETURNS PROCESSED.
48
3.1. Tax returns filed.
48
3.2. Electronic tax returns filed by companies.
49
3.3. Other documents processed by the administrative offices for Excises. 3.4. Documents processed by Customs.
51 51
3.5. Tax returns with right to automatic refund in the self-assessment system.
53
3.6. Communications relating to rapid refunds to persons not obliged to file an Income Tax return. 4. TAXPAYER SERVICES. 4.1. Information Services.
54 55 55
4.1.1. Non-personalised information.
55
4.1.2. Individual information.
55
4.2. Assistence services.
56
4.2.1. Pre-populated Income Tax Return.
56
4.2.2. Computer help programmes
56
4.2.3. Appointment service.
57
4.2.4. Call centre.
57
4.2.5. Voice recognition unit - 901 12 12 24.
58
4.2.6. Advance credit of deduction for maternity.
58
4.2.7. Improving the Customs office.
58
4.3. Facilities for the payments of taxes due.
59
4.3.1. Collaborating institutions.
59
4.3.2. Deferment and payment by instalments.
59
4.4. Other services.
60
4.4.1. Issue of tax certificates.
60
4.4.2. Advanced price agreements.
61
R E P O R T
2006 I
N
D
E
5. TAX AND CUSTOMS CONTROL. 5.1. Extensive control. 5.1.1. Extensive control operations for internal taxes.
X
62 62 62
5.1.1.1 Mainteinance of the roll.
62
5.1.1.2. Check of annual tax returns.
63
5.1.1.3. Check of periodic tax returns.
64
5.1.1.4. Check of periodic tax returns. VAT for Exporters and other Economic Agents.
66
5.1.1.5. Exporter Register and other Economic Operators.
67
5.1.1.6. Special Tax on Certain Means of Transport (IEDMT).
67
5.1.2. Operations on taxpayers in special Small Business Scheme (modules scheme). 5.1.3. Extensive control activities with large companies.
68
5.1.4. Control activities and Intrastat tax returns.
69
5.1.5. Management and Audit Activities for Excises.
70
5.2. Selective checks and investigation activities.
71
5.2.1. Audit activities (traditional checks).
71
5.2.2. New selective investigation and tax offence activities.
72
5.2.3. Customs Surveillance actions.
79
5.2.4. Analytic control carried out in the Customs Laboratories.
81
5.3. Tax collection management.
III.
68
81
5.3.1. Debts from settlements made by the Tax Agency.
82
5.3.2. Debts to other bodies.
82
5.3.3. Management of public fees.
85
5.3.4. Other actions related to the control of the collection process.
85
OPINION AND PARTICIPATION OF CITIZENS.
1. STUDIES AND OPINION POLLS.
87 88
1.1. Public Opinion and Tax Policy (Sociological Research Centre).
88
1.2. Public Opinion and Taxation (Institute for Fiscal Studies).
89
1.3. Suggestions box for the Tax Fraud Prevention Plan.
91
2. SUGGESTIONS.
91
IV.
93
APPENDIX OF STATISTICS.
R E P O R T
2006
I. The Tax Agency
1
REPORT
2006
I.THE TAX AGENCY
1. MISSION
T he State Tax Agency (henceforth, the Tax Agency) was created by the General State Budget Act 1991, and came into being on 1 January 1992. It was constituted as an entity under public law assigned to the Ministry of Economy and Finance through the Secretary of State for Finance and Budgets. As a result of this configuration, it has its own legal personality which is separate to that of the General State Administration, and this confers a degree of autonomy in budgetary and human resource management issues, without undermining the essential principles that govern all public sector activity. The Tax Agency is responsible for the effective application of the state tax and customs system, and for those resources belonging to the national Public Administration and the European Union which are entrusted to it for management by law or agreement. The Tax Agency is therefore responsible for the application of the tax system in order to fulfil the constitutional principles that all should contribute to the sustainability of public expenditure in accordance with their economic capacity. As a result, it has no authority for the preparation and approval of tax regulations, in terms of public expenditure, or for the allocation of public resources for different purposes. The comprehensive management of the state tax and customs system involves a wide range of activities, which include: The management, audit and collection of the taxes for which it is responsible (Personal Income Tax, Non-resident Income Tax, Corporation Tax, Value Added Tax and Excises). The performance of important functions related to the income of the Autonomous
2
Communities and Cities with Statutes of Autonomy, both in relation to the management of Income Tax and in the collection of other income for these Communities, whether this role is established by legislation or through pertinent co-operation agreements. The collection of revenue belonging to the European Union. Customs management and the control of contraband goods, and the guarantee of security in the logistics chain. The collection of State Public Sector fees in the voluntary payment period. The collection of public income due to the General State Administration and associated or dependent Public Bodies through enforcement. Participation in the persecution of certain offences, including offences against the Public Treasury and offences relating to contraband goods. The Tax Agency's main objective is to encourage the voluntary compliance of citizens with their tax obligations. It performs two lines of action to achieve this: on the one hand, the provision of information and assistance services for taxpayers in order to minimise the indirect expenses associated with meeting tax obligations and, on the other, through the detection and correction of tax defaults through control actions. In addition, it is also responsible for other complementary functions, such as providing assistance to jurisdictional bodies and co-operation with other Public Administrations.
REPORT
I.-
2006
THE TAX AGENCY
2. THE TAX AGENCY IN FIGURES
DESCRIPTION OF THE TAX AGENCY 2006 BUDGET 2006
1,259,612 million euros
WORKFORCE Civil Servants Auxiliary staff Total
24,883 2,364 27,247
REGIONAL DEPLOYMENT Number of buildings Total area
535 1,267,391 m2
TAXPAYER ROLL Taxpayers Businesses Large Companies
41,940,001 4,964,552 34,869
GROSS TAX REVENUE MANAGED
221,414 million euros
THE TAX AGENCY ON-LINE
Number of visits to www.agenciatributaria.es
193,876,355
Number of Income Tax Returns submitted by Internet
3,775,468 869 (99.77% de of disposals in the year)
On-line auctions: number of disposals
MAIN RESULTS
Tax Data/Pre-populated Tax Returns sent
15,083,091
Pre-populated Tax Returns confirmed Advance credit for working mothers
4,197,629 650,177 million euros (733,159 mother)
Telephone calls answered (Only including calls answered by by Tax Agency service) Appointments arranged (Appointments arranged for the Income Tax campaign 3,343,687) Use of the PADRE program (% of Income Tax returns prepared with this help program)
5,476,178 calls 3,700,038 appointments 97.89%
Applications for Rapid Refund to Persons not obliged to file Income Tax Returns 556,727 applications Applications for Postponement and Payment in Instalments Average time for refund Average time in Customs Office Value of merchandise apprehended, discovered or seized Direct collection effect*
473,600 applications for 4,974.97 million euros 25 days 28.32 minutes 3,860.58 million euros (72 % of which was drugs) 5,310 million euros
*Includes both income from control activities carried out by the Agency's bodies and reductions for agreed refunds.
3
REPORT
2006
I.THE TAX AGENCY
3. ORGANISATIONAL STRUCTURE
T he structure of the Tax Agency is divided into Central Services and Regional Services. Its management structure includes the President, who is the Secretary of State for Finance and Budgets, the Director General, the Senior Management Board, the Permanent Management Committee and the Co-ordinating Committee for the Regional Directorate. Official governing bodies Senior Management Board. This acts as the advisory body for the President of the Agency and as a participating body for the Autonomous Communities and for Cities with Statutes of Autonomy in the Tax Agency. It is chaired by the President of the Agency and consists of the Director General, the Departmental and Agency Services Directors, the Under-secretary for Economy and Finance, other General Directors from the Ministry and representatives of the Autonomous Communities. Permanent Management Committee. This advisory body is chaired by the President of the Agency or, in the absence of the President, by the Director General, and consists of all the Departmental and Services Directors, the heads of the Secretary of State's Office for Finance and Budgets and the Director General, together with the Special Delegate for Madrid and, since 2006, also the Central Delegate for Large Taxpayers. The Mixed Commission for Co-ordination of Tax Management. This is a participatory body which provides permanent representation for the Autonomous Communities and Cities with Statutes of Autonomy in the Tax Agency. The Co-ordinating Committee for the Regional Directorate. This is the normal vehicle for co-ordination and communication of information between the management of the Agency and its regional organisation. It is chaired by the Director General and consists of the Departmental and Service Directors and all the Special Delegates.
4
Security and Control Commission. In addition to preparing the criteria and proposals for regulations which ensure that the activities of the Tax Agency strictly comply with the provisions which govern it, this body co-ordinates the various Sectorial Commissions on Security and Control which exist for each Department. Central Services The Agency's Central Services basically follow an organisation model of functional operational areas and support areas. In summary, the basic functions of each Department and Service are: Tax Management Department. It provides information and helps taxpayers to meet their taxation obligations more easily. In addition, it carries out wide ranging checks using extensive IT support in order to verify, for example, that there are no calculation errors or discrepancies between the data provided by the taxpayer in their tax return and that which appears in the Tax Agency's database. It also carries out checks on taxpayers in Special Small Business regime and the tax roll. Furthermore, it is also responsible for the simplification of taxpayers' formal obligations. Financial and Tax Audit Department. This Department manages, plans and co-ordinates tax audit, studying, designing and planning the actions and procedures of the audit services. It also has functions related to the verification, control and prevention of tax fraud, and provides tax management assistance to large companies. Tax Collection Department. This Department is responsible for collecting the debts and sanctions not paid voluntarily - voluntary payment is made through financial institutions which provide this service for the Tax Agency. It also manages the collection of public resources, entrusted to the Tax Agency by law or agreement. In addition, it also facilitates the payment of debts by taxpayers by granting deferments and payment in instalments.
REPORT
2006
I.THE TAX AGENCY
3. ORGANISATIONAL STRUCTURE
Customs and Excises Department. This Department manages and inspects taxes and other charges on foreign trade, the traditional resources of the European Union Budget and the excises and subsidies for agriculture and exporting. Since 2005, it has also been responsible for guaranteeing the security of the logistics chain. The Customs Surveillance Division is responsible for managing the fight against Customs fraud, the suppression of smuggled goods and money laundering, and collaborates in financial and tax audits in the fight against organised tax fraud.
accounting of tax income, the preparation and implementation of comprehensive protection plans and the management of the Printing and Enveloping Centre, among other functions.
Organisation, Planning and Institutional Relations Department. This horizontal department is responsible for co-ordinating the planning of the Tax Agency's activities and the general relations of the Agency with the Autonomous Communities and with other public bodies and institutions, whether foreign or national, and international bodies and social, economic or professional bodies and associations. This Department acts as the Permanent Secretariat for the Mixed Commission for Co-ordination of Tax Management.
Internal Audit Service. The Internal Audit Service provides audit and audit services. the prevention, detection and investigation of irregular conduct; the co-ordination of actions relating to such conduct; and evaluation of the Tax Agency's internal security and control systems. It also carries out budgeting, analysis and monitoring functions of the tax revenue and monitors compliance with the Agency's Objectives Plan. Finally, it is responsible for the co-ordination and development of the Operating Unit's functions of the Council for the Defence of the Taxpayer. Furthermore, it also holds the Vice-presidency of the Sectorial Security and Control Commissions.
Taxation IT Department. This Department works with all operational areas offering a powerful computer system and a large data capture and processing system, in which the latest information and communication technologies have been fully incorporated . Human Resources and Economic Administration Department. This Department is responsible, on the one hand, for the employment policy and management of the legal and financial systems of the Tax Agency's human resources, the selection and training of its personnel and labour relations and, on the other hand, the financial and economic management of the Tax Agency, the preparation of multi-year budget scenarios and the annual budget, the management of acquisitions, real estate management,
Legal Service. Legal assistance is provided to the Tax Agency through a system based on a legal service of internal and immediate support -the Tax Agency's Legal Service - and this is complemented by the general State Lawyers network. The Agency's Legal Service provides legal advice and representation and defence in court.
The Director General's Office. The Office provides advice and support to the Director General of the Tax Agency. Central Delegation for Large Taxpayers On 1 January 2006, the Central Delegation for Large Taxpayers came into operation. This body has powers throughout the national territory which enables the co-ordinated control of large taxpayers and improves the attention and service provided to them. The Central Delegation was created to provide coordination and integration among the functional areas of the Tax Agency.
5
REPORT
2006
I.THE TAX AGENCY
3. ORGANISATIONAL STRUCTURE
Territorial Network The Territorial Network reproduce the organisation by areas within their sphere. There are 17 Regional Offices (named Special Delegations), one for each Autonomous Community, and 51 Delegations, usually at provincial level, which include 237 local branches (named Local Administrations), 34 of which are Customs offices.
REGIONAL SERVICES
NUMBER OF OFFICES Special Delegations
17
Delegations
51
Administrations Customs Administrations
6
203 34
Collection Department
Customs Department
Inspection Department
Taxation Management Department
Central Delegation of Large Taxpayers
Administrations
Delegations
Special Delegations
General Department
Presidency ( Secretary of State for Finance and Budgets)
Organisations, Planning and Institutional Relations Department
Human Resources and Economic Administration Department
IT Department
Legal Service
Internal Audit Service
Permanent Secretariat of the Mixed Commission
2006
REPORT I.THE TAX AGENCY
3. ORGANISATIONAL STRUCTURE
7
REPORT
I.-
2006
THE TAX AGENCY
4. BUDGETS: REVENUE AND EXPENSES
T he Tax Agency has its own annual budget, the initial amount of which is approved by the Spanish parliament. In addition, the General
State Budget Act covers possible modifications in accordance with their activity.
Revenue budget
IMPLEMENTATION STATUS OF REVENUE BUDGET 2006
DEFENITIVE FORECASTS (1) Duty and other revenue Current transfers Asset revenue Disposal of real investments Capital transfers Financial assets TOTAL
RIGHTS APPLIED TO THE BUDGED (2)
% (2)/(1)
30.866 1,127.288 2.834 0 85.668 12.956
30.001 1,127.053 3.200 0.134 85.668 12.818*
97.20 99.98 112.91 — 100.00 98.93
1,259.612
1,258.874
99.94
In millions of euros. * Whilst as a result of their economic nature they are not recognised as net rights, they include 12.347 million euros corresponding to the Liquid assets Surplus applied to the financing of the budget.
The above table shows that 96.33% of total revenue is collected from transfers; 89.53% are current transfers to finance current expenses (personnel, assets and services), whilst 6.80%
8
are capital transfers to finance the investments of the Tax Agency. The remaining income comes from fees, sales of publications and other minor sources of income.
REPORT
I.-
2006
THE TAX AGENCY
4. BUDGETS: REVENUE AND EXPENSES
REVENUE BUDGET: TRANSFERS 2006
DEFINITIVE FORECASTS (1) For operational expenses 992.616 From participation in collection of assessment activities 61.780 From compensation of expenses for other services 3.332 From premium for collection on own resources 67.771 From other Ministerial Department 0.069 From Autonomous Bodies 0.783 From Abroad 0.937
NET RIGHTS RECOGNISED (2)
% (2)/(1)
992.616 61.780 3.332 67.771 0.048 0.783 0.723
100.00 100.00 100.00 100.00 69.57 100.00 77.16
1,127.288
1,127.053
99.98
For financial investments 42.173 From participation in collection of assessment activities 43.220 From other Ministerial Department 0.275
42.173 43.220 0.275
100.00 100.00 100.00
85.668
85.668
100.00
1,212.956
1,212.721
99.98
CURRENT TRANSFERS
CAPITAL TRANSFERS TOTAL TRANSFERS In millions of euros.
Expense budget
STATUS OF IMPLEMENTATION OF EXPENSE BUDGET 2006
DEFINITIVE CREDIT (1) Personnel expenses Current expenses Financial expenses Investments Financial assets TOTAL
OBLIGATIONS RECOGNISED (2)
% (2)/(1)
843.725 338.010 0.050 77.218 0.609
836.479 332.693 0.017 75.820 0.476
99.14 98.43 34.00 98.19 78.16
1,259.612
1,245.485
98.88
In millions of euros.
9
REPORT
I.-
2006
THE TAX AGENCY
4. BUDGETS: REVENUE AND EXPENSES
EVOLUTION OF CHAPTER II: CURRENT EXPENSE S IN GOOD AND SERVICES
2005 1. Expenses directly related with collection objectives
122.869
14.47
7.866
8.760
11.37
14.481
12.931
-10.70
84.991
101.178
19.05
187.101
191.599
2.40
60.503
63.501
4.96
25.063
23.999
-4.25
33.928
35.750
5.37
48.611
48.741
0.27
18.996
19.608
3.22
15.871
18.225
14.83
310.310
332.693
7.21
2.A Building operation expenses (maintenance, supplies, cleaning, security) 2.B Office expenses (furnishings maintenance, office supplies and telephone communications) 2.C Building rental 2.D IT expenses (rental and maintenance of equipment, IT equipment not classed as assets, electronic communications, studies and work carried out 2.E Others 3. Customs Surveillance TOTAL
% DIF. 2006 / 2005
107.338
1.A Income Tax And Wealth Tax campaigns 1.B Official forms and other taxation forms 1.C The Agency’s strategic communications campaigns, telephone helpline services for the public, postal communications, legal-disputed, valuations and expert opinions, custody and deposit, expenses and costs of officer’s travel. 2. Indirect expenses related with collectio n objectives
2006
In millions of euros.
EVOLUTION EXPENSES OF INVESTMENT
Buildings and similar Machinery and installations Transport equipment Furniture and fittings IT equipment and applications Other fixed assets TOTAL In millions of euros.
10
2005
2006
% DIF. 2006 / 2005
26.003 5.990 11.066 10.704 33.034 0.016
24.905 6.661 10.566 6.199 27.438 0.051
-4.22 11.20 -4.52 -42.09 -16.94 218.75
86.813
75.820
-12.66
REPORT
I.-
2006
THE TAX AGENCY
5. HUMAN RESOURCES
On 31 December 2006, the total number of people employed by the Tax Agency was 27,247, i.e. 21 people more than in 2005, an increase of 0.37% in civil servants and a decrease of 3% in auxiliary staff. In absolute terms, in 2006 there was an increase of 92 civil servants and a decrease of 71 auxiliary staff. These figures do not include the 1,557 temporary workers recruited for the Personal Income Tax Return period. Distribution of staff in Central Services and Regional Services The figures for staff employed by the Tax Agency are well below the average in most
other OECD member states. According to OECD figures for 2004, in Germany there were 699 inhabitants for each tax authority employee: in the United Kingdom there were 810; in France, 790, and in the United States, 2,974, whilst in Spain there were 1,557. The distribution of personnel in the Tax Agency on 31 December 2006 was as follows: 87.68% of the staff belong to the regional services, whilst the remaining 12.32% are employed by central services. Auxiliary staff account for 8.68% of the total, whilst civil servants account for 91.32%.
SUMMARY OF WORKFORCE
CENTRAL SERVICES Civil Servants Auxiliary staff
3,112 246
TOTALS
3,358
REGIONAL SERVICES 21,771 2,118 23,889
SUBTOTALS 24,883 2,364 27,247
2,118 3,112 246
Civil Servants Services Regional Auxiliary staff Services Regional Civil Servants Services Central Auxiliary staff Services Central
21,771
By civil service grade, 9,170 workers (37% of the total) are in Group C, particularly in the General Administrative Areas and Customs Surveillance Officers. 7,170 civil servants (28% of the total) are in Group B. This consists mostly of Tax Technical Corps, in addition to the Customs Executive Corps. The next most important in terms of numbers is Group D with 6,377 employees (26% of the total), consisting mostly of civil servants from the General Auxiliary Corps. Finally, Group A (2,129 people) represents 9% of the total. The most important
part of this Group is the Senior Tax Inspection Corps and the Senior Customs Officer Corps. The relative proportions of the different groups of civil servants were subject to some small changes similar to those in previous years: a decrease in the relative importance of Group D (7.14% less: a decrease of 455 people) and an increase in Group C (an increase of 4.91%: 450). Group B increased by 0.88%: 63 civil servants, and Group A by 1.74%, 37 civil servants.
11
REPORT
I.-
2006
THE TAX AGENCY
5. HUMAN RESOURCES
DISTRIBUTION OF STAFF BY GRADE NUMBER
CIVIL SERVANTS at /2006
NUMBER
%
GROUP A Senior Tax Inspector Senior Customs Officers Senior IT and Systems Staff Public Finance Architects Customs Chemistry Professors State Lawyers Senior Civil Service Administrators Other Group A
1,562 193 123 48 32 30 23 118
TOTAL GROUP A
2,129
9
GROUP B Public Tax Technician Customs Executive Officer Systems and IT management Civil Service Manager Chief Customs Surveillance Inspectors (SVA) Public Finance Technical Architects Other group B
6,108 442 264 162 68 21 105
TOTAL GROUP B
7,170
28
GROUP C General Administrative, Public Finance officers General Administrative, Tax Administration Customs Surveillance Agents General civil service administrators IT auxiliary technicians Administration of Autonomous Bodies Other group C TOTAL GROUP C
4,458 2,020 1,074 809 710 38 61 9,170
37
GROUP D General Auxiliary Staff, Specialising in Tax Administration General Auxiliary Civil Service Staff Auxiliary Staff from Autonomous Bodies Other group D
5,785 452 90 50
TOTAL GROUP D
6,377
TOTAL GROUP E
37
TOTAL CIVIL SERVANTS
24,883
26 — 100
DISTRIBUTION OF CIVIL SERVANTS/AUXILIARY STAFF
NUMBER
%
Civil Servants
24,883
91
Auxiliary staff
2,364
9
27,247
100
TOTAL
12
REPORT
I.-
2006
THE TAX AGENCY
5. HUMAN RESOURCES
By functional areas, operational areas (Management, Audit, Collection and Customs) account for 19,900 people, representing 73.03% of the total staff; within this, Tax Management employs 6,863 people, followed by Audit, which employs 4,894, Collection, which employs 4,504 and Customs which employs 3,639 people. The
Human Resources and Economic Administration areas are responsible for 13.03% of employees; the Head Office accounts for 2.76% of staff; Internal Audit is responsible for 0.55% and Legal Services accounts for 0.52%, whilst, finally, Institutional Relations is responsible for 0.21% of staff.
DISTRIBUTION OF PERSONNEL BY AREAS
AREA
NUMBER
Taxation management Audit Collection Customs Human Resources and Economic Administration Taxation IT Head office Internal audit Legal Service Institutional Relations
6,863 4,894 4,504 3,639 3,550 2,696 752 149 143 57
TOTAL
27,247 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0
Taxation management
Taxation IT
Audit
Head offices
Collection
Internal audit
Customs
Legal Service
Human resources and economic admin
Institutional Relations
13
REPORT
I.-
2006
THE TAX AGENCY
5. HUMAN RESOURCES
With regard to the gender distribution of staff, 53.1% are female and 46.9% are male.
The average age of the workforce is 46.41 years old; 46.24 years old for civil servants and 48.17 years old for auxiliary staff.
DISTRIBUTION OF PERSONNEL BY GENDER
WOMEN
%
MEN
%
14,473
53.1
12,774
46.9
By age groups, the distribution is as follows: DISTRIBUTION OF PERSONNEL BY AGE
AGE RANGE NUMBER %
14
18-32
33-40
41-48
49-56
57-70
TOTAL
960
5,078
12,133
6,481
2,595
27,247
3
19
45
24
9
100
REPORT
I.-
2006
THE TAX AGENCY
6. INFORMATION AND COMMUNICATION TECHNOLOGY
T he Tax Agency is one of the pioneers of eAdministration in Europe, and this is bringing permanent improvements in working methods, which have enabled it to develop online services for taxpayers and companies, and for taxation and customs control. The Tax Agency has a Virtual Office at www.agenciatributaria.es, which enables filing tax returns and carrying out other procedures by Internet. One feature of 2006 was the increasing use of such remote methods (Internet and telephone) by taxpayers. The interest in developing the use of such remote methods requires an increase in the overall assistance given to taxpayers, as some require personalised attention due to their particular characteristics (for example, new taxpayers, immigrants and the elderly). Nevertheless, when pre-populated tax return is ready, the public can submit it to the Tax Agency without having to make any type of rectification or to travel to the Tax Agency's offices. In order to improve existing administrative procedures, a special portal has been created on the Agency's website (www.agenciatributaria.es) for the electronic presentation and payment of
Vehicle Registration Tax. Presentation of this tax by Internet will be obligatory from this year, and this will enable an improvement in taxation control as it will enable real time detection of undervaluations and the online checking of the payment of the tax, prior to the registration of the vehicle, boat or aircraft. Finally, it should be stated that the Tax Agency has been on the Internet for 10 years. Since it was created in 1996, the development of the Agency's website and the Virtual Office has facilitated and encouraged a more transparent relationship with the public, against a background of increasing electronic complexity. Every year, taxpayers carry out over 100 million operations by Internet on the Agency's website, which has over 20,000 pages and enables the downloading of more than 60,000 files. The most appreciated services on the website are those related to Income Tax (which cover every step in the process). The website is in constant evolution; in 2006 its design was improved to enable access based on a user profile (depending on whether the visitor is a member of the public, a business or one of the Agency's collaborators), to improve accessibility for people with disabilities and to increase the use of co-official languages.
HARDWARE INSTALLED AT 31 DECEMBER 2006
CENTRAL SERVICES
REGIONAL TERRITORIES
TOTAL
Central Processing Units
2
1
3
Processing speed (MIPS)
19,993
2,633
22,626
419,643
7,251
426,894
52
48
100
768
512
1,280
On-line storage (GB) Tapes/cartridges: physical units Tapes/cartridges: virtual units
15
REPORT
I.-
2006
THE TAX AGENCY
6. INFORMATION AND COMMUNICATION TECHNOLOGY
With regard to the communications network, in 2006 work began on the implementation of a range of Telecommunications Services which include fixed line and mobile voice and data services, both for the corporate network, enabling the transmission of data between electronic devices located in the Tax Office buildings and secure access services to the Tax Agency Intranet from other networks, connection services and internet, and for interconnection with other organisations outside the Tax Agency.
One innovation was the integration of fixed line voice and data communications in a single communications network known as the "multiservice IP network" which uses MPLS technology. This IP/MPLS network supports the Tax Agency's fixed line voice and data corporate network. The increase in the Internet connection capacity of the Tax Agency's Virtual Office has continued. During the Personal Income Tax Return 2006 period, the infrastructure was capable of supporting flow rate requirements of up to 300 Mbps.
TELEPROCESSING LINES 2006
TYPE OF LINE
NUMBER OF LINES PRINCIPAL
Point to point X-25 InterLan Inter net MacroLan TOTAL
BACK UP
SUBTOTAL
3 9 10 1 379
11 2 319
3 9 21 3 698
201 770 3,263,693 20,480 6,107,136
17,997 2,097,152 4,833,796
201 770 3,281,690 2,117,632 10,940,932
402
332
734
9,392,280
6,948,945
16,341,225
With respect to connectivity with the Autonomous Communities, the communications required to offer them the services available on the Tax Agency's Intranet were maintained, and this enabled an increase in their degree of participation in the tax management and, in particular, the Personal Income Tax Return Period. Another new development was the start of the migration process of connectivity between the Tax Agency and other public bodies through
16
SPEED (Kbps) MAIN
BACK UP SUBTOTAL
the Ministry for Public Administration's Administrative Intranet. This will enable an increase in the number of bodies with which the Agency will be able to connect. The Tax Agency is also continuing to strengthen the offer of mobile services by offering confirmation of pre-populated Income Tax Return Forms by Text Messaging (SMS) and the obtainment of connectivity through the installation of new Universal Mobile Telecommunications System (UMTS) networks.
REPORT
2006
I.THE TAX AGENCY
7. ALLIANCES. INSTITUTIONAL RELATIONS
This
section describes the general relationships that the Agency has with the Autonomous Communities and other public bodies and institutions, both national and foreign, and with international bodies and associated social, economic or professional entities. 7.1. Autonomous Communities. 7.1.1. Autonomous Communities under general regime. The Tax Agency manages a range of taxes which represent an important source of finance for Autonomous Communities under joint government. These include, on the one hand, taxes which have been partially assigned (Income Tax, VAT and Excises); and on the other taxes which have been fully assigned (Special Tax on Electricity, Tax on Retail Sale of Certain Hydrocarbons and Special Tax on Certain Means of Transport), and, finally, Wealth Tax, management of which is shared between the Tax Agency and the Tax Authorities of the Autonomous Communities. As a result, the Autonomous Communities also have an interest in the tax administration carried out by the Tax Agency. As such, they are involved in the Tax Agency through the Senior Management Board and the Mixed Commission for Co-ordination of Tax Management and the Regional Taxation Directorate Boards. The Tax Agency and the Autonomous Communities carry out three functions through these bodies: planning, regulation and management.
Objectives Plan and the essential guidelines for the Taxation Control Plan. In addition, they monitored the results of the Objectives Plan. With regard to regulations, before they were approved, the draft regulations, both at the State and Autonomous Community levels, affecting the taxes assigned were reported to the Mixed Commission. In terms of the management functions, in 2006 the development of the recommendations and measures contained in the framework document on the relations of the Secretary of State for Finance and Budgets and the Tax Agency with the Tax Agencies of the Autonomous Communities and the Cities with Statutes of Autonomy, approved at the meeting of the Mixed Commission for the Co-ordination of Tax Management on 22 October 2004 was consolidated. Said document can be consulted at www.agenciatributaria.es in the Autonomous Communities section. In this way, once again, the Autonomous Communities and Cities with Statutes of Autonomy took part in the Personal Income Tax and Wealth Tax campaigns. With regard to periodic exchanges of information, these were monitored at meetings of the Mixed Commission, and the Tax Agency has complied with all requests for information relating to the management of taxes assigned by the Tax Administrations of the Autonomous Communities in compliance with the commitment to transparency.
In 2006, the Autonomous Communities and Cities with Statutes of Autonomy took part in the Tax Agency's planning, contributing to the
17
REPORT
2006
I.THE TAX AGENCY
7. ALLIANCES. INSTITUTIONAL RELATIONS
Statistical information is supplied to the Autonomous Communities relating to Income Tax, Wealth Tax, the Special Tax on Certain Means of Transport and the Tax on Retail Sale of Certain Hydrocarbons. In addition, with regard to Income Tax, a sample of the tax and various simulations of the effects of the reform of Income Tax on the Autonomous Communities were provided. The appropriate protocols were followed in each case in order to meet requests for "personalised" statistical information and for the carrying out of simulations. The periodic supply of information by electronic means on the tax roll (monthly), the list of deaths (quarterly), payments of Wealth Tax outside the period decreed (fortnightly) and the business tax roll also continued. The Tax Agency sends information electronically to the Autonomous Communities on the Wealth Tax returns which it manages, and they in turn send information on Inheritance and Donations Tax and on Transfer Tax and Stamp Duty to the Tax Agency. Finally, the information available to the Autonomous Communities is complemented by that which is published, with general access, on the Tax Agency website, (www.agenciatributaria.es), in the taxation statistics section. With regard to the controlling of autonomous community deductions for Income Tax, a new information form has been made available to the Autonomous Communities which enables them to provide the Tax Agency with the information it needs to control the deductions that they approve under the powers vested in them. With regard to the tax roll, the Autonomous Community Tax Authorities and the Tax Agency
18
have started the process of creating a joint roll. As a result, the Autonomous Communities send the Tax Agency the tax roll information which they have, and the Tax Agency validates this and incorporates the information that it did not have into its database; it then sends another file to the Autonomous Communities containing the information in the Agency's database. With regard to collection, new agreements were signed for enforced collection between the Tax Agency and the Autonomous Communities which have been applied since October 2006. A standardised electronic procedure has also been developed for attachment of budgetary payments. In the field of audit, the Tax Agency carries out direct audit activity with regard to Wealth Tax, the management of which is shared, in addition to other actions contained in the Tax Agency's Control Plan for taxes assigned. In addition, work was done on the development of an electronic tool for risk selection, which has been offered to the Autonomous Communities for the control of the taxes assigned to them. The Autonomous Communities have also been supplied with cross-referenced information related to Wealth Tax, in order to control this tax, and information on deaths for the control of Inheritance and Donations Tax. With regard to co-official languages, advances were made in the use of other languages alongside Spanish in the geographic areas in which they are recognised. A linguistic unit has been created for the co-ordination and validation of the Tax Agency's linguistic policy. The Tax Agency website can now be used in Catalan, Valencian and Galician and the content is in the process of being translated.
REPORT
2006
I.THE TAX AGENCY
7. ALLIANCES. INSTITUTIONAL RELATIONS
7.1.2 Relationship between the Tax Agency and Tax Administrations under special (Foral) regime. Co-operation relationships between the Tax Agency and Local Tax Administrations under special (Foral) regime received an important boost with the signing of agreements with the Basque Country (18 May) and Navarre (15 June) 2006. These agreements contain the conclusions of the various technical working groups set up. The content of the agreements is as follows: An amicable process has been established for changes of tax address. A procedure has been agreed for cases of payment of taxes to the wrong authority, and for undue tax payments, together with coordination rules which favour good communication between administrative units of the different Authorities. Standards for distribution between the various competent Tax Authorities of the results of issues relating to joint taxation have been established and are now being applied by the Authorities involved. A joint strategy has been adopted for the prevention, detection in its early stages and suppression of organised intracommunity VAT fraud, which includes the differentiated areas of prevention, detection of fraud in its early stages and suppression of fraud already committed. An electronic attachment process for tax refunds has been established by the Tax Agency and Tax Authorities in Navarre.
Aside from these activities carried out in the development of the agreements mentioned above, the current form for analysing ways of fostering the exchange of information have been analysed so as to introduce improvements in the application of the tax systems. 7.2. Local Entities. The Tax Agency is continuing to promote institutional co-operation with local entities in the scope of the supply and exchange of information and in collection, without prejudice to the co-operation activities within the scope of the Business Tax. To this end, in 2006, co-operation and the exchange of information between the Tax Agency and Local Entities continued to be promoted based on the co-operation Protocol and Agreements signed on 15 April 2003 with the Spanish Federation of Municipalities and Provinces. These agreements are: A co-operation agreement relating to the exchange of taxation and collection management information. A co-operation agreement relating to the supply of taxation information to Local Entities. A co-operation agreement for the enforced collection of taxes for the Local Entities by the Tax Agency. A co-operation agreement relating to the electronic filing of tax returns and communications related to Income Tax on behalf of third parties.
19
REPORT
2006
I.THE TAX AGENCY
7. ALLIANCES. INSTITUTIONAL RELATIONS
In addition, on 13 December 2006, an Addendum to the co-operation agreement on the exchange of information and co-operation in collection management was signed. This Addendum extends the procedure of attachment of tax refunds by the Agency for debts with local entities, which had previously only been enabled for taxation debts, to any debt with the public sector, whether related to taxation or not. 7.3. Co-operation agreements. 7.3.1. Social Co-operation. Social co-operation for the prevention of taxation fraud In 2005, the Tax Fraud Prevention Plan was approved to encourage social co-operation in the prevention of tax fraud, encouraging the detection and suppression of fraudulent activity which affects economic competence. This plan promotes the establishment of corporate and associated co-operation mechanisms between the Tax Agency and entities representing different economic sectors, and these have led to the signing of Memorandums of Understanding (MOU). These Memorandums of Understanding enable the sector to transmit information to the Tax Agency about its general functioning and about operations suspected to be fraudulent (particularly those related to VAT) and in general to co-operate in the fight against fraud, as they establish a direct and permanent communication channel between the Tax Agency and associations representing the sectors at risk of fraud.
20
In 2006, Memorandums of Understanding were signed with the National Association of Business Centres (ACN), the Consumers' and Users' Organisation (OCU) and the Spanish Spirit Drinks Federation (FEBE), in addition to the Memorandums signed the previous year. Social co-operation for the application of taxation: co-operation agreements for the electronic filing of tax returns, communications and other taxation documents A significant proportion of all tax returns made by electronic means are filed on behalf of third parties by "social collaborators" who provide the advantages of new technology to people who do not have access to the Internet. Through the signing of social co-operation agreements in the application of taxation, the Tax Agency authorises certain entities - public authorities, financial institutions, associations and professional bodies - or their members, to carry out procedures, such as the filing of tax returns, lodging appeals for reversal etc., by electronic means on behalf of third parties. In 2006, a total of 14,032,351 tax returns were filed on behalf of third parties by social collaborators. The co-operation agreements signed up to 31 December 2006 by the various types of entities were:
REPORT
I.-
2006
THE TAX AGENCY
7. ALLIANCES. INSTITUTIONAL RELATIONS
COOPERATION AGREEMENTS FOR THE ELECTRONIC PRESENTATION OF TAX RETURNS
Type of entity
To 2004
2005
2006
Total
Professional Tax Management Associations and Colleges
213
10
18
241
Membership protocols
110
4
3
117
Other entities (business associations, cooperatives, other colleges, etc.)
157
56
38
251
Membership protocols
21
17
13
51
Financial institutions
116
1
3
120
Autonomous Communities
16
—
—
16
Councils and other Public Bodies
84
1
—
85
Membership protocols for the Agreement Framework with Federation of Municipalities and Provinces (FEMP)
113
25
20
158
Companies (exclusively for the presentation of Income Tax returns for employees)
10
—
—
10
Private entities (groups of companies)
—
—
3
3
Automobile Concession Associations
1
15
20
36
Total Agreements
597
83
82
762
Total Protocols
244
46
36
326
TOTAL (Agreements and Protocols)
841
129
118
1.088
7.3.2. Other co-operation Agreements. Assistance for disabled persons. Agreement with CERMI (Spanish Committee for Representatives of Persons with Disabilities) – ONCE (National Organisation for the Blind) Continuing with the policy of earlier years, the Commission for Monitoring the Co-operation Agreement between the Tax Agency and the Committee for Representatives of Persons with Disabilities (CERMI) and the ONCE (National Organisation for the Blind) approved the Action Plan for Assistance to Persons with Disabilities for 2006, which included the following main activities to be carried out: extension of work to
improve accessibility to other Tax Agency buildings; improvements to website accessibility; specific services for persons with disabilities during the Income Tax Return period; electronic filing of tax returns and training activities for Agency staff (sign language). Agreement with the Institute for Fiscal Studies The co-operation between the Tax Agency and the Institute for Fiscal Studies for the development of a civic-taxation education programme continued in 2006 in the framework of the General Co-operation Protocol signed by the two institutions in April 2005.
21
REPORT
2006
I.THE TAX AGENCY
7. ALLIANCES. INSTITUTIONAL RELATIONS
This agreement includes a specific plan of joint actions renewed on an annual basis. In 2006, collaboration was focused on monitoring and evaluation of the plan for civic-taxation education, fundamentally for the Internet Portal for Civic-Taxation Education, and for organising courses for training school teachers in this subject. Agreement with the National Council of Chambers of Commerce In 2006, the Co-operation Framework Agreement was maintained between the Tax Agency and the National Council of the Chambers of Commerce for disseminating statistical information on External Trade. Agreement with the Spanish Institute for Foreign Trade In 2006, the Co-operation Agreement signed the previous year between the Tax Agency and the Spanish Institute for Overseas Trade was the framework for the exchange of information for statistical and tax purposes, with the aim of fulfilling the functions of promoting, supporting and fostering of Overseas Trade. Agreements for the Prevention of Fraud of Special Tax on certain Means of Transport (IEDMT). In order to put into effect the measures contained under the Tax Fraud Prevention Plan, and specifically those applying to the fight against organised fraud in respect of the Special Tax on certain Means of Transport (IEDMT), the following Co-operation Agreements were signed in 2006: On 27 February 2006, a Protocol for action was agreed between the Tax Agency and the National Traffic Department to check adherence to tax obligations relating to vehicle registration and the fight against tax fraud.
22
On 24 March 2006, an Agreement was signed with the Directorate General of the Merchant Navy for the supply of information and direct access to the databases held by the Directorate General's Ships and Shipping Companies Register. On 16 May 2006, an Agreement was signed with the Directorate General of Civil Aviation for the supply of information contained in the Aircraft Registration Numbers Register. 7.4. International Relations At the end of 2004, a Resolution issued by the President of the Tax Agency on 26 December 2004 authorised the creation of the Unit for the Co-ordination of International Relations. The Resolution states that the Working Group, temporarily created for this purpose in 1997, had fulfilled its mission and that a specific organic unit was required to ensure the co-ordination of the Tax Agency's international activities. The Resolution integrates the Unit in the Organisation, Planning and Institutional Relations Department and assigns it the functions of developing and co-ordinating the Agency's relations with international organisations and institutions which are not specifically within the remit of other bodies. With the collaboration of all its Departments and Delegations, the Agency's international presence was strengthened in 2006, owing to the participation of its experts in various international institutions and organisations, providing technical assistance, giving courses and receiving numerous visits from foreign delegations.
REPORT
I.-
2006
THE TAX AGENCY
7. ALLIANCES. INSTITUTIONAL RELATIONS
7.4.1. Technical Co-operation European Union Relations with the European Union have been ongoing both in terms of customs and in matters of internal taxation. The Tax Agency has participated and provided information on aspects with operational impact on the processes related to development of legislation and Guidelines for tax harmonisation within the European Union Council Working Groups. The Tax Agency takes part in various European Commission Advisory Committees on matters of
taxation and customs, as consultants to both Regulatory and Management Committees. It also takes part in various working groups on specific issues. Fiscalis Programme The Tax Agency manages Spanish participation in the European Union FISCALIS Programme, which aims to foster co-operation between the Tax Agencies through joint actions. The following table summarises Spanish participation in the different types of activities.
FISCALIS PROGRAM. SUMMARY OF ACTIVITY (1998-2006) 1998
1999
2000
2001
2002
2003
2004
2005
2006 TOTAL
40 37
32 27
40 32
29 29
39 41
32 36
33 44
32 37
33 34
310 317
7
9 2
11 1
14
9 2
5 1
16
14 1
16
101 7
71
11
21
41
16
16
15
16
108
5
4
8
4
7
5
7
7
51
8
8
EXCHANGES Civil Servants sent by the Agency Civil Servants received by the Agency SEMINARS Organised by other administrative bodies Organised by the Tax Agency SUBTOTAL MULTILATERAL CONTROL PROJECT GROUPS
Customs 2007 Programme Parallel to the Fiscalis Programme, the Department of Customs and Excises has collaborated actively in the European Commission's Customs 2007 co-operation programme, carrying out 9 exchanges of staff members and taking part in 6 seminars. OECD
4
In 2006, the Tax Agency took part in the 17th and 18th meetings of the FTA Bureau that took place in Paris in January and in Seoul in September, respectively. The Tax Agency was also represented at the 3rd meeting of the FTA, also in Seoul, on 14 and 15 September, out of which came the approval of an agreement (known as the "Seoul Declaration") which will have far-reaching implications for taxation.
The Tax Agency is part of the OECD Forum on Tax Administration Management Bureau , as well as of the various Working Groups.
23
REPORT
2006
I.THE TAX AGENCY
7. ALLIANCES INSTITUTIONAL RELATIONS
Spain was also represented by experts from the Tax Agency at various seminars organised by the OECD in 2006, occasionally with other Institutions such as the CIAT. IOTA The Tax Agency was accepted as a member of the Intra-European Organisation of Tax Administrations (IOTA) at its 2005 General Meeting, effective from 1 January 2006, thus strengthening its existing collaboration as an associate institution. In 2006, the Tax Agency was represented in the various Working Groups and Seminars, as well as at the 8th Forum of "Main Contact Persons" and at the 10th IOTA General Meeting that took place in Budapest in March and May respectively. The Agency also took an active part in the Technical Consulting Service, the aim of which is to obtain practical information from different Member States. COUNTRIES IN CENTRAL AND EASTERN EUROPE The Agency is one of the Spanish Administration institutions which works actively to get the best results from European Union enlargement. Within the framework of the PHARE programme, the European Commission promotes twinning agreements with new Member States and candidate member countries. In 2006, the Tax Agency took part in the following twinning agreements: Romania • Simplified Customs Procedures and Border Control.
24
• Harmonisation of Tax Legislation and Strengthening of Tax Administration. • The Tax Agency has also won the twinning agreement RO/06/IF/FI/02 for the "Development of a Customs Laboratories Network", planned for 2007. Estonia: Implementation of the Customs "acquis communautaire" Bulgaria: Implementation of the INTRASTAT System. Croatia: Strengthening Laboratories System.
the
Customs
Hungary: The Tax Agency has been awarded two Twinnings planned to take place in 2007. Their topics are “EU Practice in the area of Special Tax Control and Regulations for the use of Biofuels and other Renewable Energy for Transport" and "Customs Auditing". In 2006, seven civil servants from the Tax Agency collaborated in the European Union CAFAO programme in the Balkans. LATIN AMERICA Latin America is undoubtedly the area in which Spanish collaboration is greatest. It is an especially relevant region with which there is a clear commitment to co-operation and institutional support, channelled in this case through the respective Tax Agencies.
REPORT
2006
I.THE TAX AGENCY
7. ALLIANCES INSTITUTIONAL RELATIONS
Throughout 2006, 46 technical assistance missions were carried out in 10 countries, formalised under bilateral or multilateral agreements with other institutions such as the Spanish Co-operation Agency (AECI), the InterAmerican Development Bank (IDB), the InterAmerican Centre for Tax Administration (CIAT), the International Monetary Fund (IMF), etc. During 2006, the first phase of the EU-funded FIGARI project for modernising the National Tax
Department in Uruguay was completed. It is due to continue in 2007 with the collaboration of the International Foundation for the Public Policies and Administration of Ibero-America (FIIAPP). Also worth mentioning here is the Customs Cooperation Project between the EU and MERCOSUR, in which a number of civil servants from the Customs and Special Tax Department have participated.
TECHNICAL ASSISTANCE 2006 COUNTRY
NUMBER OF MISSIONS
Dominican Republic
4
Mexico
1
Honduras
1
Costa Rica
1
Argentina
12
Brazil
2
Guatemala
1
Columbia
2
Peru
1
Uruguay
21
TOTAL
46
The relationship with the Inter-American Centre of Tax Administrations (CIAT) is also worth highlighting. This collaboration covers a number of aspects: publications, courses and technical assistance for various countries, regional projects, dissemination of best practice, monograph competition, research scholarships, etc. In addition, the Agency has participated in several CIAT Working Groups such as those examining "Code of Conduct and Promotion of Ethics", "Internal Control", "Exchange of Information" and "Updating the
CIAT Tax Code Model". The Tax Agency also attended the 40th CIAT General Meeting that took place in Brazil between 3 and 6 April. However, the most important event this year was the 54th CIAT Technical Conference, organised by the Tax Agency with the theme of "AN INTEGRATED APPROACH IN PREVENTING AND COMBATING TAX EVASION", which took place in Madrid from 23 to 26 October and was attended by 155 delegates from 43 countries and 9 international organisations.
25
REPORT
2006
I.THE TAX AGENCY
7. ALLIANCES INSTITUTIONAL RELATIONS
Also in 2006, the Agency collaborated in the EUROsociAL Project, launched in 2005 by the European Commission to improve social cohesion in Latin American societies and helping leaders to draw up, approve and manage public policy. The Project, within the area of taxation, is carried out by an international consortium of 10 institutions, led by the Spanish Institute for Fiscal Studies. The Tax Agency's role has focused on holding three courses in the Institute for Fiscal Studies ("Strategies for fostering voluntary fulfilment of obligations: Telephone assistance services and criteria unification programmes", "New Technology in the Area of Taxation" and "Roll Creation and Maintenance, Micro-business Tax, The Fight against the Black Economy and Mass Control") and organising a "Familiarisation Visit" for Brazilian civil servants.
On 24 October, the Agreement for a Transfrontier Mechanism for Exchange of Tax Information was signed in Madrid. 3. Co-operation Spain-the Netherlands On 11 April 2006, an Agreement was signed in Amsterdam by the competent authorities of the Netherlands and Spain for developing and strengthening mutual assistance in tax matters. 4. Co-operation Spain-France-Italy-Portugal Finally, in the area of the EU, a meeting was held in Madrid on 19 May between the National Directors of the Tax Agencies in France, Italy, Portugal and Spain, at which the creation of a European Tax Unit was discussed, a topic which is the subject of much debate in the Commission. B) American Countries
BILATERAL RELATIONS A) European Union Countries 1. Co-operation Spain-France A permanent Co-operation framework has been established with France, as a result of which several meetings and discussions have been held with civil servants from the French Administration. 2. Co-operation Spain-Portugal Throughout 2006 a number of meetings have been held between the two Tax Administrations, including the official visit in February by the National Director of the Tax Agency to the Portuguese Finance Minister. Three meetings have been held between official representatives of the DGCI and the Tax Agency within the framework of the Agreement in matters of Mutual Administrative Assistance between the two countries, signed in September 2004, . In April, two meetings were held (one in Evora and another in Pontevedra), with the third taking place in May in Madrid.
26
The relationship with Latin American countries was highlighted by training and technical cooperation activities. It is also worth mentioning that on 3 April in Florianopolis (Brazil), during the CIAT General Assembly, the Administrative Agreement between the Spanish and Chilean authorities was signed, regarding the exchange of information and mutual assistance. C) Rest of the World On 28 November, in Nador the IV Conference of Spain / Morocco Customs Co-operation took place, which culminated the transfrontier cooperation that took place under the auspices of the Interreg III programme. We should also highlight that in 2006 a civil servant from the Tax Agency took part in the Near East Institutional Strengthening Project, organised by the FIIAPP. Finally, bilateral relations have been initiated with Morocco, Malaysia, Russia, China, Syria,
REPORT
I.-
2006
THE TAX AGENCY
7. ALLIANCES. INSTITUTIONAL RELATIONS
etc., countries from which several delegations have visited. 7.4.2. Training Actions The Agency continued with its training actions aimed at foreign civil servants, basically from Latin American countries. The Agency and the IEF organise the traditional Course on Tax Institutions and Techniques and the Latin American Course on International Customs Techniques in Spain on an annual basis, which are attended by some 45 civil servants from the relevant Latin American Administrations. The XXVI and XXVIII edition took place from 5 to 30 June 2006, respectively. The project “Study of Relevant and Current Cases of Tax Policy and Tax and Customs Administration" undertaken by the Agency in collaboration with the IDB, aims to share practices that are representative because of their importance or interest. The project is financed by the IDB and two meetings were held in 2006: “Co-operation between Tax Administrations in Processes of Economic Integration" and "Computing Tools for Tax Support".
America on "Key Aspects of Customs Management in Processes of Territorial Integration", "Legal Services" and "Planning and Control of Tax Administration". International Master in Tax Administration and Public Finance (AEAT-IEF-AECI-UNEDCIAT-World Bank) In 2006, the 2nd Edition of the Masters (20042006) ended with the 2nd Meeting in Madrid. In connection with the 3rd Edition (2005-2007), the 1st Meeting took place in July in the AECI centre in La Antigua. Likewise, the 4th Edition (2006-2008) began in October with a total of 30 students from different Latin American countries. 7.4.3. Exchange of Experiences with other Administrations Visits Received In 2006, in the various Departments and Special Delegations of the Tax Agency, 71 visits were made by foreign delegations from international organisations in a range of countries (European, American, Asian and African), who were interested in finding out about how the Agency works and taking our experience back to their environments.
Likewise, in collaboration with the AECI, another three seminars/workshops were held in Latin
VISITS FROM FOREIGN DELEGATIONS
1998
1999
2000
2001
2002
2003
2004
2005
2006 TOTAL
Latin America
8
5
5
14
12
15
17
13
26
115
Europe
4
8
10
12
18
21
33
34
33
173
Other*
1
1
6
3
2
9
9
9
12
52
TOTAL
13
14
21
29
32
45
59
56
71
340
GEOGRAPHIC AREAS
* Also included in this section are visits by institutions and international organisations such as IMF, OLAF, etc.
27
REPORT
2006
I.THE TAX AGENCY
8. ACTION PLAN
Since its creation in 1992, the Tax Agency has given great importance to planning activities, using a system based on management by objectives specified each year in an Objectives Plan. To meet the guidelines contained in the Tax Fraud Prevention Plan, substantial changes were made in 2005 to the annual planning instruments used by the Tax Agency and which were configured in three basic documents: the Objectives Plan and the General Control Plan (in the area of taxation control), as basic planning instruments for the Special Delegations and the Central Delegation for Large Taxpayers, and the Central Services Commitments Document. The actions contained in the planning instruments are aimed at developing and fulfilling the various organisational, regulatory and procedural measures in the Tax Fraud Prevention Plan and are framed within the Tax Agency's new strategic lines of action in the fight against fraud contained in this document. The experience gained from the 2005 financial year in the application of the new planning system contributed to improving the efficiency of the fight against fraud. Therefore, in 2006 this experience has been maintained and consolidated, thereby ensuring the continuity of its principles, characteristics, objectives and indicators, although the necessary changes will be made to adapt it to any new organisational, regulatory and procedural measures. To this end, the Central Delegation of Large Taxpayers, created by Order of the Ministry for Economy and Finance on 13 October 2005, has taken over, as effective from 1 January 2006, the functions previously carried out by the National offices for Audit, Customs and Tax Collection, which have been abolished. The integration in the Central Delegation of the functions of assistance and tax control for taxpayers with a greater volume of operations
28
has meant that in 2006 a number of organisational and procedural adjustments have been made, which have had repercussions on planning instruments. 8.1. Planning and Programme of Actions for 2006 8.1.1. Objectives Plan 2006 The Objectives Plan for the Special Delegations and the Central Delegation for Large Taxpayers includes the results to be achieved during the financial year and the priority actions that must be carried out in order to achieve these results in their dual function of assistance to the taxpayer and the fight against fraud. With the aim of ensuring continuity to the strategic lines defined in the Tax Fraud Prevention Plan, the Objectives Plan 2006 maintains the same structure of the previous year's document and is divided into two blocks, results and actions, although some new ways of measuring certain objectives have been incorporated: Results. Includes only the gross and net tax collection, as well as the effect on collection of the control actions, both on income from these actions, the majority of which are included in the calculation rules under Section 103. Five b) of Act 31/1990, and on the amount of reductions in refunds. General and Priority Actions. These contribute directly to achieving results and are detailed in the following paragraphs: Assistance to taxpayers, with the indicators that are aimed at strengthening improvements in the service given to taxpayers and at fostering voluntary fulfilment of tax obligations, such as electronic filing of returns and self-assessments, speeding up average appeal processing times and decision making,
REPORT
2006
I.THE TAX AGENCY
8. ACTION PLAN
and certificates issued electronically in order to avoid citizens having to go personally to the Tax Agency's Offices. Actions of the fight against fraud, defined as actions to be carried out in each area of control or activity, synthesising or recording the most relevant control actions in one indicator. Since the Tax Agency, in the exercise of its controlling functions, carries out different kinds of actions of varying complexity, etc. that cannot be compared or be considered together, the objectives for the fight against fraud are defined in terms of equivalent or homogeneous actions. In addition, in order to evaluate the degree of execution or fulfilment of the objective and the quality of work carried out, various adjustment factors are used according to the type of actions, the business volume, the debt paid, the general or specific nature of the action and the number of financial years to be checked, etc. The instrumental nature of the objectives established in terms of actions assume that these will have to be changed in order that they can be adapted to the changing
economic situation and to the new types of fraud, draw new lines of work for the Organisation, or to improve the way the actions are assessed, as well as other issues. Thus, for example, in the 2006 planning exercise it was considered appropriate to introduce new weighting coefficients into the control actions on internal taxes, such as the business volume of the checked taxpayer, the general or specific nature of the action and the number of financial years to be checked. However, this causes problems for the interyearly checks on objectives in terms of actions. In view of this, in order to ensure the statistical coherence of the data and its compatibility, the objectives have been monitored based on 2005, following the criteria of the 2006 General State Budgets established in the indicators included in the Report of Objectives of programme 932 A "Application of the State Tax System". The results obtained in the Objectives Plan for 2006 were higher than anticipated for that financial year over all the first level indicators, as illustrated below:
29
I.-
REPORT
2006
THE TAX AGENCY
8. ACTION PLAN
TAX AGENCY OBJECTIVES PLAN 2006
OBJECTIVE
TARGET
% CARRIED OUT FULMILMENT
I. RESULTS 1. Gross collection 2. Net collections 3. Direct collection effect 3.1. Revenue from the Agency’s control activities 3.2. Reduction of Refunds
203,632,000 165,316,000 4,544,088 3,560,496 983,591
221,414,737 179,380,390 5,309,633 4,182,645 1,126,989
108,73 108,51 116,85 117,47 114,58
II. ACTIVITIES II.1. Assistance to the Taxpayer 4.1. Average time for processing appeals and complaints (days) 4.2. Submission of Tax Returns by electronic means and telephone (%) 4.3. Certificates avoiding the need for visits (%)
40,00
31,00
129,03
25,50
28,33
111,10
68,80
75,94
110,38
93,731
116,651
124,45
9,615
10,526
109,47
7. Real Estate Investigation Activities
44,725
46,402
103,75
8. Activities related to fraud and false invoices
13,984
16,120
115,27
9. Customs and taxation surveillance activities
47,139
64,670
137,19
3,304,684
4,210,445
127,41
105,108
147,022
139,88
1,722,275
1,995,416
115,86
8,096,524
8,544,450
II.2. Anti-fraud activities Selective Control and Investigation Activities* 5. Audit Activities on domestic taxation 6. Customs and Excises Audit Inspection Activities
Extensive Control Activities** 10. Extensive control of domestic taxes and small business activity 11. Extensive control activities for large companies 12. Customs and excises taxes management activities Collection Management Activities 13. Debt Collection Management** Amounts in millions of Euros. * Homogeneous actions based on 2005. ** The amounts are expressed in nominal terms.
30
105,53
REPORT
2006
I.THE TAX AGENCY
8. ACTION PLAN
8.1.2. General Plan for Tax Control 2006 The General Plan for Tax Control, which is confidential except in respect of the General Regulations that govern it, details the actions carried out annually in each of the areas that are responsible for tax and customs control, with a breakdown of territories and programmes of action. The Official State Bulletin (BOE) of 3 February 2006 published the General Regulations for the General Plan for Tax Control, approved by Order of the General Director of the Tax Agency on 27 January. The General Regulations outline the principal lines to be followed by tax and customs control, and establish the areas of tax and customs risk in which the efforts of the fight against fraud are to be concentrated. The Plan is structured in three broad sections: General Regulations; Partial Tax Control Plans, corresponding to the areas of Financial and Tax Audit, Customs and Excises Taxes, Tax management and Collection; and Plan Integration Regulations, containing the rules and procedures that govern collaboration and coordination actions between the areas. The Plan Integration Regulations also include coordinated planning, in areas of assigned taxes, with the Autonomous Communities.
8.1.3. Commitments of Central Services for 2006 The Commitments of Central Services include the objectives of the Departments and Services of the Tax Agency with the various members of the organisation (both central and regional), with other Administrations and Institutions and with the citizens. In agreement with the Agency's other planning documents, this document sets out the specific commitments made by Central Services, which detail the strategies and priorities contained in the Fraud Prevention Plan, together with others related to the Tax Agency's basic strategic lines of action, such as information and assistance to taxpayers and tax control which, although not expressly covered by the Plan, some are nevertheless required for its effective application. In addition, various commitments related to management issues are also detailed, such as human, material and computing resources, relations with other national and international Agencies, etc.
31
R E P O R T
2006
II.- Summary of Operations
33
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
Gross Tax Collection 2006 The total gross Collection managed by the Tax Agency in 2006 was 221,414 million Euro compared to 196,838 million in the previous financial year, an increase of 17,782 million over the Budget figure. This is a variation of 12.5%, the largest reached in the last nine years; this figure stood at 12.2% in 2005. In net terms this is reduced to 11.6%, an increase of almost 4 points on the nominal GDP (7.8%), although this is a slowing down compared to 2005 (14.1%, the greatest growth since 1989). The lower net growth is justified by the dynamic nature of refunds, which increased in 2006 by 16.4%.
The notable increase in taxes collected is partly due to the dynamic nature of work, capital and investment funds withholdings, as well as payments on account of Corporation Tax, which reflect the favourable situation of family income and business profits in 2006. This growth is also due to the positive evolution of VAT collection and to greater payments of Income Tax and Corporation Tax differential quotas in the 2005 financial year, as well as the different periods during which certain Public Administrations paid their employment withholdings. The gross tax collection for 2006, in terms of the main tax figures, is contained in the following tables, which show the collections carried out and the homogeneous figures for the purposes of analysis.
TOTAL GROSS TAX COLLECTION PERIOD JANUARY-DECEMBER DIFFERENCE TO BUDGET CONCEPTS
Personal Income Tax CORPORATION TAX Non-Resident Income Tax Rest of Chapter I Total Chapter I Value Added Tax Exicses Foreign Trade Tax on Insurance Premiums Rest of Chapter II Total Chapter II Total Chapter III and Others TOTAL REVENUE MANAGED
DIFFERENCE TO 2005
BUDGET 2006 (1)
COLLECTION 2006 (2)
COLLECTION 2005 (3)
DIFFERENCE (4)=(2)-(1)
% (5)=(2)/(1)
DIFFERENCE (6)=(2)-(3)
% (7)=(2)/(3)
69,584
73,577
65,091
3,993
105.7
8,486
13.0
34,926
41,882
35,979
6,956
119.9
5,903
16.4
2,356
2,480
2,313
124
105.3
167
7.2
55
79
64
24
143.6
15
23.4
106,921
118,018
103,447
11,097
110.4
14,571
14.1
72,770
79,722
70,814
6,952
109.6
8,908
12.6
19,528
18,992
18,262
-536
97.3
730
4.0
1,506
1,605
1,466
99
106.6
139
9.5
1,433
1,388
1,314
-45
96.9
74
5.6
34
30
42
-4
88.2
-12
-28.6
95,271
101,737
91,898
6,466
106.8
9,839
10.7
1,440
1,659
1,493
219
115.2
166
11.1
203,632
221,414
196,838
17,782
108.7
24,576
12.5
Amounts in millions of Euros. Shows the total collected before discounting the participation of the Regional Administrations - Autonomous Communities and Local Corporations.
34
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
TOTAL GROSS TAX COLLECTION BROKEN DOWN BY STATE AND AUTONOMOUS REGION COLLECTION JANUARY-DECEMBER 2006
DIFFERENCE TO BUDGET CONCEPTS
Personal Income Tax CORPORATION TAX Non-Resident Income Tax Rest of Chapter I Total Chapter I Value Added Tax Excises Foreign Trade Tax on Insurance Premiums Rest of Chapter II Total Chapter II Total Chapter III and Others TOTAL REVENUE MANAGED BY THE TAX AGENCY
STATE(1) PARTICIPATION TOTAL TAX AGENCIES (2) (3)=(1)+(2)
COLLECTION JANUARY-DECEMBER 2005
STATE (1) PARTICIPATION TOTAL STATE (1) PARTICIPATION TOTAL TAX AGENCIES (2) (3)=(1)+(2) TAX AGENCIES (2) (4)=(1)+(2)+(3)
49,040
20,544
69,584
52,259
21,318
73,577
46,321
18,770
65,091
34,926
0
34,926
41,882
0
41,882
35,979
0
35,979
2,356
0
2,356
2,480
0
2,480
2,313
0
2,313
55
0
55
79
0
79
64
0
64
86,377
20,544
106,921
96,700
21,318
118,018
84,677
18,770
103,447
54,163
18,607
72,770
60,494
19,228
79,722
52,953
17,861
70,814
11,141
8,387
19,528
10,285
8,707
18,992
10,035
8,227
18,262
1,506
0
1,506
1,605
0
1,605
1,466
0
1,466
1,433
0
1,433
1,388
0
1,388
1,314
0
1,314
34
0
34
30
0
30
42
0
42
68,277
26,994
95,271
73,802
27,935
101,737
65,810
26,088
91,898
1,440
0
1,440
1,659
0
1,659
1,493
0
1,493
156,094
47,538
203,632
172,161
49,253
221,414
151,980
44,858
196,838
Amounts in millions of Euros. Breakdown of the total income between State and Regional Administrations.
The difference of 24,576 million on 2005 is the result of several opposing factors, the most positive of which are the increased gross payments from employment withholdings (tax deducted at source) (5,735 million, 1,024 million of which come from the Public Administrations), from capital withholdings (1,144 million), from Income Tax differential quota (1,463 million), from Corporation Tax, both from payments in instalments (3,133 million) and from differential quota (2,306 million), from Value Added Tax (8,908 million) and from Excises (730 million). Tax collections obtained in 2006, compared to that achieved in the previous year, for Personal Income Taxes (IRPF), Corporation Tax (IS), Nonresidents Income Tax (IRNR), Value Added Tax (IVA), Excises (IIEE) and Chapter III Income, is detailed in the following sections:
1.1. Personal Income Tax The total gross collection in 2006 shows a rate of variation of 13.0%, for the reasons commented below. Income from wages and salaries Withholdings grew by 11.3%, influenced by the strength of private sector withholdings and updates in the pension scheme. Having eliminated the income from the Public Administrations, income from large companies and SMEs increased by 11.8%, being 11.1% for large companies and 13.0% for SMEs. Salaried employees registered with Social Security closed the year with a growth rate of 4.7% before correction of the normalising effect of immigrants, in line with that of 2005, whilst registered unemployment showed a drop of 1.5% in 2006. The positive performance of employment and the increase in the average salary (4.6%) justify the upturn in the salary mass (9.5%) and the extensive growth of withholdings.
35
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
GROSS INCOME TAX PERIOD JANUARY-DECEMBER DIFFERENCE TO BUDGET CONCEPTS
COLLECTION 2006 (1)
DIFFERENCE TO 2005
COLLECTION 2006 (2)
COLLECTION 2005 (3)
DIFFERENCE (4)=(2)-(1)
% (5)=(2)/(1)
DIFFERENCE (6)=(2)-(3)
% (7)=(2)/(3)
Withholdings on wages and professional activities Withholdings on rental income Withholdings from investment funds Withholdings on capital gains Payment in instalments for business, professional and artistic activities Gross difference in tax payable (before AA,TT, participation)- annual return
54,738
56,642
50,907
1,904
103,5
5,735
11.3
1,440
1,453
1,316
13
100,9
137
10.4
461
529
360
68
114,8
169
46.9
2,962
3,323
2,496
361
112,2
827
33.1
3,128
3,170
3,015
42
101,3
155
5.1
6,855
8,460
6,997
1,605
123,4
1,463
20.9
INCOME TAX - TOTAL REVENUE
69,584
73,577
65,091
3,993
105,7
8,486
13.0
Amounts in millions of Euros.
In general terms, in those subconcepts (withholdings) where income was accounted for over more than one tax (IRPF, IS and IRNR), an analysis is presented below for that group of taxes and is included in this section: The total income from withholdings on rental income was 194 million greater than expected, showing a growth rate of 10.4% over the previous year (9.8% in 2005). Total income from Withholdings on Investment Funds grew to 754 million, with a growth rate of 47.0% in 2006 compared to 34.9% in 2005, owing to the strong growth in capital appreciation in the Funds. Total income from Withholdings on Capital was 6,690 million, a growth of 20.5%, owing to greater dividends distributed and to the increase in interest paid into bank accounts. Income from Income Tax payments in instalments grew by 5.1% compared to 4.5% in the previous year, influenced by the evolution of directly estimated income, which was 70% of this income at a rate of 6.3%. The gross Personal income tax due from annual return collected was 8,460 million. This figure shows the income relating to self-assessment
36
in the Personal Income Tax Return Period in the 2005 financial year, which stood at 7,747 million, with an increase of 23.1% compared to 2004, a rate associated partly to strong capital gains not subject to withholdings (mainly shares and property). The refund amounts in this Campaign increased by 6.0%. 1.2. Corporation Tax The total income in gross terms showed a growth rate of 16.4% in 2006. Income from payments in instalments, around 52% of the gross income in this area, registered a growth of 16.6%, a slower growth than the previous years, owing to the slowing of growth related to tax groups (40.8% in 2005 to 17.5% in 2006). For the remaining organisations, the growth rate was 15.7% (12.2% in 2005), which confirms the strength of company results in 2006, as, according to data from the National Securities Market Commission, profits for listed companies over the first nine months of 2006 grew by 25.4%, although the application of non-accounting adjustments, deductions and refunds reduced the growth of the declared taxable base to 18.6%.
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
Income for Differential Amount shows basically the income from self-assessment in the 2005 financial year, which was 14,809 million, with a variation rate of 13.6%, 1.6% of which was for tax groups (as a consequence of the strong
increase in payments on account carried out in 2005 discounted from this statement and the rate for which was 40.8%), whilst 16.0% was for the remaining organisations.
GROSS TAX REVENUE FROM CORPORATION TAX PERIOD JANUARY-DECEMBER DIFFERENCE TO BUDGET CONCEPTS
Withholdings for rental Withholdings from investment funds Withholdings on capital gains Payments in instalments Gross differential in tax payable- annual return TOTAL CORPORATION TAX
BUDGET 2006 (1)
COLLECTION 2006 (2)
599
605
196
225
2,277
2,505
2,170
COLLECTION 2005 (3)
DIFFERENCE TO 2005
DIFFERENCE (4)=(2)-(1)
% (5)=(2)/(1)
DIFFERENCE (6)=(2)-(3)
% (7)=(2)/(3)
548
6
101.0
57
10.4
153
29
114.8
72
47.1
228
110.0
335
15.4
17,545
21,989
18,856
4,444
125.3
3,133
16.6
14,309
16,558
14,252
2,249
115.7
2,306
16.2
34,926
41,882
35,979
6,956
119.9
5,903
16.4
Amounts in millions of Euros.
1.3. Non-resident Income Tax The total income was 2,480 million, with a growth rate of 7.2% as a consequence of the deposits from withholdings and payments in instalments (90% of the amount), which grew by 9.6%. 1.4. Value Added Tax Gross total income for VAT in 2006, including income for imports from third countries and assimilated operations, showed a growth rate of 12.6%, the greatest since 2001, influenced by the positive evolution of final spending subject to VAT which maintained an upward trend in 2006 (9.6%, one point higher than in 2005), with
accelerated growth both in real terms and in the effect on prices, reflected in the collection amount. Income from VAT imports and assimilated operations showed a negative rate of 10.9% as a consequence of loss of VAT income from Assimilated Operations on imports, on entry into effect of Royal Decree 87/2005 of 1 May 2005 (in 2005 there was income from this area during the first four months, with no equivalent in 2006). For imports from third countries, the rate was 14.8%, in line with the growth of non-EU imports (13.6%), almost two points over growth in 2005, reflecting the dynamic nature of the economy throughout the year.
37
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
GROSS NON-RESIDENT INCOME TAX COLLECTED PERIOD JANUARY-DECEMBER DIFFERENCE TO BUDGET
DIFFERENCE TO 2005
BUDGET 2006 (1)
COLLECTION 2006 (2)
COLLECTION 2005 (3)
DIFFERENCE (4)=(2)-(1)
% (5)=(2)/(1)
DIFFERENCE (6)=(2)-(3)
Withholdings and Payments on account Gross differential in tax payable Tax on property
2,085
2,243
2,047
158
107,6
196
9,6
265
232
261
-33
87,5
-29
-11,1
6
5
5
-1
83,3
0
0,0
TOTAL NON-RESIDENT INCOME TAX
2,356
2,480
2,313
124
105,3
167
7,2
CONCEPTS
% (7)=(2)/(3)
Amounts in millions of Euros.
GROSS VALUE ADDED TAX COLLECTED PERIOD JANUARY-DECEMBER DIFFERENCE TO BUDGET CONCEPTS
Imports: - Imports - Other operations similar to imports Gross domestic transactions: - General and simplified regime - Large companies - Exporters - Other domestic transactions VAT - TOTAL REVENUE
DIFFERENCE TO 2005
BUDGET 2006 (1)
COLLECTION 2006 (2)
COLLECTION 2005 (3)
DIFFERENCE (4)=(2)-(1)
% (5)=(2)/(1)
DIFFERENCE (6)=(2)-(3)
% (7)=(2)/(3)
8.021
8.651
9.713
630
107.9
-1.062
-10.9
8.021
8.599
7.491
578
107.2
1.108
14.8
0
52
2.222
52
-
-2.170
-97.7
64.749
71.071
61.101
6.322
109.8
9.970
16.3
25.341
28.454
24.329
3.113
112.3
4.125
17.0
26.918
30.338
25.664
3.420
112.7
4.674
18.2
9.935
11.754
8.869
1.819
118.3
2.885
32.5
2.555
525
2.239
-2.030
-20.5
-1.714
-76.6
72.770
79.722
70.814
6.952
109.6
8.908
12.6
Amounts in millions of Euros.
Gross collections for internal operations, at a rate of 16.3%, partly reflects the recovery of income from assimilated operations for imports, as this income was not deducted in the monthly return-settlements of large companies and exporters (first four months of 2006 against the same period in 2005). The greater increase in gross family income and
38
the drive for families to seek loan financing was reflected in their consumer spending, in imports and in spending on housing (which once again showed a high growth in 2006 to 19.1%). Only the component for Public Administrations spending showed a loss of intensity compared to the previous year.
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
1.5. Excises Consumer goods subject to Excises maintained the moderate trend of the previous year, reflected also in their increase in income, at a growth rate of 4.0% compared to 2.9% in 2005. Hydrocarbon income showed a slight recovery (2.2%, 0.9% in 2005) owing to the stability of the cash rate (compared to the drop of 0.8 points registered in 2005) owing partly to lower consumption of bonus diesel, whilst those of the Tobacco Industry (3.9%, almost two points
down on 2005) have felt the impact of the drop in prices of the first months and the demotivating effect on tobacco consumption (3.1%) of the health measures and increase in tax introduced this year. 1.6. Duties and other revenues Total income was 1,659 million, with a rate of 11.1%, influenced by the income from the radiofrequency tax, income from which in 2006 included those made by one organisation over three financial years.
GROSS SPECIAL TAXES COLLECTED PERIOD JANUARY-DECEMBER DIFFERENCE TO BUDGET CONCEPTS
BUDGET 2006 (1)
COLLECTION 2006 (2)
1,049 291
% (5)=(2)/(1)
DIFFERENCE TO 2005
COLLECTION 2005 (3)
DIFFERENCE (4)=(2)-(1)
DIFFERENCE (6)=(2)-(3)
% (7)=(2)/(3)
1,026
972
-23
97.8
54
5.6
312
260
21
107.2
52
20.0
Alcoholic and similar drinks Beer Intermediate products Hydrocarbons Tobacco products Certain Means of Transport Electricity
21
21
19
0
100.0
2
10.5
10,749
10,472
10,246
-277
97.4
226
2.2
6,464
6,131
5,903
-333
94.8
228
3.9
2
3
6
1
150.0
-3
-50.0
952
1,027
856
75
107.9
171
20.0
EXCISES - TOTAL REVENUE
19,528
18,992
18,262
-536
97.3
730
4.0
Amounts in millions of Euros.
GROSS CHAPTER III TAX AND OTHERS COLLECTED PERIOD JANUARY-DECEMBER DIFFERENCE TO BUDGET CONCEPTS
Radio-electronic duty Other taxes Remaining Chapter III and Others Total Chapter III and Others
DIFFERENCE TO 2005
BUDGET 2006 (1)
COLLECTION 2006 (2)
COLLECTION 2005 (3)
DIFFERENCE (4)=(2)-(1)
% (5)=(2)/(1)
DIFFERENCE (6)=(2)-(3)
% (7)=(2)/(3)
246
352
243
106
143.1
109
44.9
520
526
548
6
101.2
-22
-4.0
674
781
702
107
115.9
79
11.3
1,440
1,659
1,493
219
115.2
166
11.1
Amounts in millions of Euros.
39
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
1.7. Net Tax Collection 2006Refunds The following table itemises the total net collection undertaken by the Tax Agency, which in 2006 reached the total of 179,380 million compared to 160,705 million in the previous financial year, exceeding the Budget estimation by 14,064 million. It shows a growth rate of
11.6%, 2.5 points lower than 2005 as a result of refunds being made faster. The amount of refunds carried out in 2006 was 41,890 million, with a positive rate of 16.4% compared to the previous year, a rate that triples the figure achieved in the previous two years (under 5%).
TOTAL NET TAX COLLECTION PERIOD JANUARY-DECEMBER DIFFERENCE TO BUDGET CONCEPTS
Income Tax CORPORATION TAX Non-Resident Income Tax Rest of Chapter II Total Chapter I Value Added Tax Excises Foreign Trade Tax on Insurance Premiums Rest of Chapter II Total Chapter II
DIFFERENCE TO 2005
BUDGET 2006 (1)
COLLECTION 2006 (2)
COLLECTION 2005 (3)
DIFFERENCE (4)=(2)-(1)
% (5)=(2)/(1)
DIFFERENCE (6)=(2)-(3)
% (7)=(2)/(3)
58,536
62,813
54,723
4,277
107.3
8,090
14.8
31,681
37,208
32,495
5,527
117.4
4,713
14.5
1,426
1,498
1,351
72
105.0
147
10.9
54
77
63
23
142.6
14
22.2
91,697
101,596
88,632
9,899
110.8
12,964
14.6
50,045
54,652
49,870
4,607
109.2
4,782
9.6
19,290
18,602
18,022
-688
96.4
580
3.2
1,497
1,595
1,458
98
106.5
137
9.4
1,433
1,387
1,314
-46
96.8
73
5.6
31
25
41
-6
80.6
-16
-39.0
72,296
76,261
70,705
3,965
105.5
5,556
7.9
Total Chapter III and Others
1,323
1,523
1,368
200
151.1
155
11.3
TOTAL REVENUE MANAGED BY THE TAX AGENCY
165,316
179,380
160,705
14,064
108.5
18,675
11.6
Amounts in millions of Euros.
1.7.1. Personal Income Tax The total net income in 2006 shows a growth rate of 14.8% (14.7% in 2005), a rate of 3.8% for refunds.
40
The refunds made in this period were 10,620 million, 89.0% of which were for the IRPF Campaign for the 2005 financial year (including the refunds for non-payers in the sum of 117 million).
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
INCOME TAX
REFUNDS 2006 (1) Working mothers Previous year Two years ago Public Debt Undue payments and others TOTAL
REFUNDS 2005 (2)
DIFFERENCE (3)=(1)-(2)
% (4)=(1)/(2)
650
614
36
5.9
9,488
9,041
447
4.9
208
280
-72
-25.7
0
0
0
-
274
292
-18
-6.2
10,620
10,227
393
3. 8
REFUNDS PERIOD JANUARY-DECEMBER
CONCEPTS
REFUNDS 2006 (1)
REFUNDS DIFFERENCE 2005 (2) (3)=(1)-(2)
% (4)=(1)/(2)
Personal Income Tax CORPORATION TAX Non-Resident Income Tax Rest of Chapter I Total Chapter I
10,620 4,674 982 2 16,278
10,227 3,484 963 1 14,675
393 1,190 19 1 1.603
3.8 34.2 2.0 100.0 10.9
Value Added Tax - VAT- Annual - VAT- Exporters Excises Foreign Trade Tax on Insurance Premiums Rest of Chapter II Total Chapter II
25,070 14,104 10,966 390 10 1 5 25,476
20,944 11,470 9,474 240 8 0 1 21,193
4.126 2.634 1.492 150 2 1 4 4.283
19.7 23.0 15.7 62.5 25.0 0 400.0 20.2
136
124
12
9.7
41,890
35,992
5,898
16.4
Total Chapter III and Others TOTAL REVENUE MANAGED BY THE TAX AGENCY Amounts in millions of Euros.
Refunds made under model 140 (advances for working mothers, 100 Euro per month for children under three years old) rose to 650
million, with an increment of 5.34% compared to the figure in 2005, which was 614 million.
41
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
1.7.2. Corporation Tax The total net income in 2006 was 37,208 million, with a variation rate of 14.5% (24.9% in 2005), a slowing down caused mainly by the larger amount of refunds made in 2006 (1,190 million). Refunds were made of 4,674 million, an increase of 34.2% compared to the same period in 2005, caused by the increase in all areas except in refunds from the previous financial year over the
previous year to that. Refunds for the current campaign (2005 financial year) have grown by 49.9% owing to the strong increase (87.9%) experienced by the tax groups (around 50% of these refunds). The cause can be found in the overpayments on account carried out in 2005 because of the capital appreciations that gave the right to deductions in the annual payments, as well as other deductions not allowed for in the payments in instalments (deductions for dividends).
CORPORATION TAX
Previous year
REFUNDS 2006 (1)
REFUNDS 2005 (2)
DIFFERENCE (3)=(1)-(2)
2,648
1,767
881
49.9
Two years ago
384
440
-56
-12.7
Public Debt
975
946
29
3.1
50
7
43
614.3
0 617
0 324
0 293
90.4
4,674
3,484
1,190
34.2
Taxation Current Account Non-Residents Undue payments and others TOTAL
1.7.3. Non-resident Income Tax Total net tax collection in 2006 grew by 10.9%, for the reasons cited above, as refunds were similar in both years.
42
% (4)=(1)/(2)
1.7.4. Value Added Tax Total net income in 2006 was 54,652 million with a variation rate of 9.6%, influenced by greater refunds carried out in 2006 (4,126 million, 2,634 million of which were for annual VAT). Refunds for annual VAT are itemised as follows:
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
VAT - ANNUAL
REFUNDS 2006 (1) Previous year
REFUNDS 2005 (2)
DIFFERENCE (3)=(1)-(2)
% (4)=(1)/(2)
7,359
5,164
2,195
42.5
193
232
-39
-16.8
52
86
-34
-39.5
Basque Country adjustment
1,209
1,213
-4
-0.3
Navarra adjustment undue payments and others
313 4,978
298 4,477
15 501
5.0 11.2
14,104
11,470
2,634
23.0
Two years ago Taxation Current Account
TOTAL
In annual VAT refunds were made for 14,104 million, 2,634 million more than for the previous year, with an increase of 23.0%, basically caused by the increase in refunds during the current campaign (42.5%).
In respect of the refunds for monthly VAT, 10,966 million have been made, an increase of 15.7%, principally centred on the refunds for the current campaign which have increased by 14.7%.
Refunds applied for in the 2005 financial year showed an increase over those applied for in the 2004 financial year of 19.8% and 95.0% of the viable refunds have been carried out; in this same period in 2005, 93.0% of the viable refunds from the 2004 financial year had been made.
Refunds carried out in the 2006 financial year represented 76.1% of viable refunds.
VAT - MONTHLY
REFUNDS 2006 (1)
REFUNDS 2005 (2)
DIFFERENCE (3)=(1)-(2)
% (4)=(1)/(2)
Current year
8,123
7,085
1,038
14.7
Previous year
2,068
1,772
296
16.7
675 100
564 53
111 47
19.7 88.7
10,966
9,474
1,492
15.7
Taxation Current Account Undue payments and others TOTAL
43
II.-
REPORT
2006
SUMMARY OF OPERATIONS
1. TAX COLLECTION RESULTS
1.8. Direct Collection Effect This heading measures the results of control actions carried out by the Tax Agency in the fight against fraud. This direct effect includes the income derived from control actions carried out by the Tax Agency and also the amount of the reductions in refunds. In accumulative terms, up to 31 December 2006, 5,309.633 million Euro have been obtained, which is a total increase of 15.10% over 2005, in which the direct collection effect was 4,612.965 million Euro. The total amount of the direct collection effect obtained in 2006 can be itemised as 4,182.645 million Euro for control actions carried out by the Tax Agency and 1,126.989 million Euro from reductions in refunds. Both amounts are, respectively, an increase of 14.89% and 15.89% over the figures for 2005 (3,640.483 million Euro for income from control actions and 972.482 million Euro from reductions in refunds).
Of the total income derived from control actions by the Tax Agency collected in 2006 (4,182.645 million Euro), 4,142.222 million Euro were obtained from income calculated using the formula provided in Section 103. Five b) of Act 31/1990. This base is constituted by the gross collections from payment and collections management actions or from other administrative actions agreed or directed by the Tax Agency in the area of tax management for which it is responsible, and refers to tax income included in Chapters I and II of the State Income Budget with the exceptions included in the regulation, as well as those included in Chapter III and whose management is the responsibility of the Tax Agency. The remaining income derived from control actions are spread over 20.243 million Euro corresponding to court cases and 20.180 million Euro to customs control actions and on certain taxes assigned to the Autonomous Communities.
DIRECT COLLECTION EFFECT 5,400 5,310 5,200 15.1%
5,000
2006
4,800 4,600 4,400 4,200
44
2005
4,613
II.-
REPORT
2006
SUMMARY OF OPERATIONS
2. TAX ROLL
The
tax roll is a basic instrument for the application of the tax system by the Tax Administration. The general information contained in the roll is divided and organised according to the characteristics of specific groups of taxpayers
(roll of company owners, professionals and withholders, large companies, special tax operators, etc.). In 2006, the roll of individual taxpayers was purged and deceased persons were deleted.
GENERAL TAXPAYER ROLL
VARIATION 2006/2005
2005
2006
Individuals
37,941,205
37,752,083
-0.50%
Companies
2,208,891
2,341,985
6.03%
Other legal persons
1,758,460
1,845,933
4.97%
41,908,556
41,940,001
0.08%
TOTAL TAXPAYERS Not including the Basque Country and Navarre.
Tax Roll of company owners, professionals and withholders This roll includes those people or organisations that carry out business or
professional activities or who pay rent subject to withholding, are who are obliged to file tax returns on a regular basis.
ROLL OF SELF-EMPLOYED, PROFESSIONAL AND WITHHOLDERS
2005 Self-employed, professionals and withholders
4,755,304
2006 4,964,552
VARIATION 2006/2005 4.40%
Not including the Basque Country and Navarre.
Large Companies Tax Roll The Large Companies tax roll has grown significantly in 2006. This consists of 34,869 taxpayers over which the Management Units in
the Central Delegation of Large Taxpayers have jurisdiction (2,933 organisations) and the Large Companies Management Units of the Regional Audit Offices (31,936 taxpayers).
45
II.-
REPORT
2006
SUMMARY OF OPERATIONS
2. TAX ROLL
LARGE COMPANY ROLL (1)
Central Delegation of Large Taxpayers Large Company Management Unit for Regional Dependencies TOTAL
VARIATION 2006/2005
2005
2006
2,498
2,933
17%
29,591
31,936
8%
32,089
34,869
9%
(1) Includes those companies with a turnover higher than 6, 010,121.04 Euro.
ROLL OF SMALL BUSINESS UNDER SPECIAL REGIME (MODULES SCHEME)
YEAR
ROLL POTENTIAL
PEOPLE OPTING OUT
% PEOPLE OPTING OUT OF TAXPAYER ROLL POTENTIAL
TAXPAYERS IN MODULES
2005 2006
2,295,250 2,279,276
473,974 474,226
20.65 20.80
1,821,276 1,805,050
Roll of Customs and Excises operators. ROLL OF SPECIAL TAXES OPERATORS (1)
Alcoholic and similar drinks Hydrocarbons Beer Tobacco Labour Electricity and similar Retail sale of hydrocarbons TOTAL
2005
2006
VARIATION 2006/2005
12,172 7,655 32 31 3,792 15,397
12,329 7,668 27 30 8,884 15,959
1.29% 0.17% -15.63% -3.23% 134.28% 3.65%
39,084
44,897
14.87%
(1) The regulations for Excises and for Tax on the Retail Sale of Certain Hydrocarbons imposes the obligation that certain operators should be registered, before beginning their activities, in the Regional Registers held in the offices managing Excises.
46
II.-
REPORT
2006
SUMMARY OF OPERATIONS
2. TAX ROLL
ROLL OF INTRASTAT* TAXPAYERS
In importing In delivery/exporting TOTAL
2005
2006
VARIATION 2006/2005
30,892 20,901
30,786 20,550
-0.35% -1.68%
51,793
51,336
-0.89%
* The variation in the number of INTRASTAT returns from 2005 to 2006 is due not only to the reduction in statistical taxpayers by applying simplifying measures (raising the Exclusion Threshold), but also to the application of standardisation criteria with the European Statistics Office, EUROSTAT.
ROLL OF CUSTOMS OPERATORS
Customs and Excises Officers Indirect Representatives TOTAL
2005
2006
VARIATION 2006/2005
712 421
718 467
0.84% 10.92%
1,133
1,185
4.58%
47
II.-
REPORT
SUMMARY OF OPERATIONS
2006
3. RETURNS PROCESSED
T
he following sections contain detailed information on the tax returns filed in 2006,
highlighting in electronically.
particular
those
filed
3.1. Returns filed by tax category INCOME TAX RETURNS PRESENTED
TOTAL RETURNS 2005
TOTAL % FILED FILED % RETURNS 06/05 ELECTRONICALLY ELECTRONICALLY 06/05 2006 2005 2006*
Positives
3,512,745
3,861,196
9.92
271,587
To refund
12,345,842
12,819,242
3.83
2,676,946
133,549
136,070
1.89
34,361
16,816,508 5.15
2,982,894
Negatives and renunciations
TOTAL INCOME TAX 15,992,136
408,452
50.39
3,323,270 24.14 43,746
27.31
3,775,468 26.57
* In addition to returns filed and the pre-populated returns confirmed by Internet (3,775,468), a total of 1,685,512 returns and prepopulateds were filed and confirmed through corporate Intranet (182,966 positive; 1,491,093 to be refunded and 11,453 negative and renounced).
DECLARATIONS PRESENTED FOR WEALTH TAX
FILED FILED TOTAL % TOTAL % RETURNS RETURNS 06/05 ELECTRONICALLY ELECTRONICALLY 06/05 2006 2005 2006 2005 Positives
908,247
944,741
4.02
48,504
77,936
60.68
Negatives
15,663
16,665
6.40
1,795
2,573
43.34
923,910
961,406
4.06
50,299
80,509
60.06
TOTAL CORPORATION
DECLARATIONS FILED TAX*
TOTAL TOTAL % FILED FILED % RETURNS RETURNS 06/05 ELECTRONICALLY ELECTRONICALLY 06/05 2005 2006 2005 2006 Positives
413,364
435,869 5.44
11,285
38,325 239.61
To refund
222,217
239,510 7.78
64,232
93,329
45.30
Zero tax payable and renunciations
497,362
542,199 9.01
170,156
241,911
42.17
TOTAL CORPORATION TAX 1,132,943
1,217,578 7.47
245,673
373,565
52.06
* Models 200/201 and 225 are included. Data from the DCGC (Directorate General of Large Companies) and URGGE (Central Management Unit of Large Companies) are excluded.
48
II.-
REPORT
2006
SUMMARY OF OPERATIONS
3. RETURNS PROCESSED
VAT RETURNS PRESENTED
TOTAL RETURNS, 2005
TOTAL RETURNS, 2006
Positives
2,017,481
2,090,581
3.62
599,120
791,074
32.04
To refund
276,871
310,266
12.06
93,691
136,366
45.55
To compensate
675,525
728,753
7.88
270,696
365,060
34.86
Negatives
122,329
129,997
6.27
30,649
42,705
39.34
3,092,206
3,259,597
5.41
994,156
1,335,205
34.31
TOTAL VAT
% FILED FILED 06/05 ELECTRONICALLY ELECTRONICALLY 2005 2006
% 06/05
Data from the DCGC (Directorate General of Large Companies) and URGGE (Central Management Unit of Large Companies) are excluded.
SPECIAL TAX RETURNS PRESENTED
Transactions declared
TOTAL RETURNS 2005
TOTAL RETURNS 2006
7,504,964
% FILED FILED 06/05 ELECTRONICALLY ELECTRONICALLY 2005 2006
% 06/05
7,305,991
-2.65
6,761,844
6,630,285
-1.95
35,867
4.69
9,388
12,783
36.16
11,998
21.17
5,668
7,620
34.43
7,353,856
-2.59
Settlement declared Positivas
34,261
Zero tax payable
9,902
TOTAL
7,549,127
6,676,900
6,650,688
-0.39
3.2. Electronic returns submitted by companies. Large companies The use of new technologies by large companies for filing tax returns electronically has increased
by 9% for compulsory electronic filing and by 36% for voluntary electronic filing.
49
II.-
REPORT
2006
SUMMARY OF OPERATIONS
3. RETURNS PROCESSED
ELECTRONIC PRESENTATION BY LARGE COMPANIES 2006 MANDATORY FILING
NUMBER OF COMPANIES
NUMBER OF RETURNS
96,250
881,494
D 06/05 9%
ELECTRONIC PRESENTATION BY LARGE COMPANIES 2006 VOLUNTARY FILING
NUMBER OF COMPANIES
D 06/05
NUMBER OF RETURNS
20,477
145,220
Small and medium-sized companies
36%
number of returns filed electronically on voluntary basis increased by 29% and those on mandatory basis increased by 43%.
Likewise, SMEs have notably increased the number of returns filed electronically. The
ELECTRONIC PRESENTATION BY SMALL AND MEDIUM COMPANIES 2006 VOLUNTARY FILING
NUMBER OF COMPANIES
NUMBER OF RETURNS
1,788,920
∆ 06/05
4,321,760
29%
ELECTRONIC PRESENTATION BY SMALL AND MEDIUM COMPANIES 2006 OBLIGATORY PRESENTATION
NUMBER OF COMPANIES 11,740
NUMBER OF RETURNS 130,642
Form 330 must be filed over the Internet since October 2005.
50
INCREMENTO RESPECTO 2004 43%
II.-
REPORT
2006
SUMMARY OF OPERATIONS
3. RETURNS PROCESSED
3.3. Other documents processed by the Excises management offices MAIN DOCUMENTS PROCESSED BY SPECIAL TAX OFFICES
2005
2006
% ∆ 06/05
Excise stamps provided to those requesting them* : 5,590,277,559
3,947,425,528
-29.39
a) Alcoholic and similar drinks
471,183,910
471,250,419
0.01
b) Cigarettes
5,119,093,649
3,476,175,109
-32.09
Circulation documents issued:
7,385,273
7,184,814
-2.71
a) Accompanying documents
1,750,848
1,718,940
-1.82
b) Delivery notes (sales en route)
5,634,425
5,465,874
-2.99
Accompanying documents received
77,675
80,771
3.99
Cards (registration on TR and supply of alcohol)
26,298
6,959
-73.54(1)
Results reports from alcohol factories
3,723
2,884
-22.54
Quarterly summaries of raw materials
4,781
4,028
-15.75
Declarations of operations in factories and bonded warehouses
27,238
27,898
2.42
3,665
3,627
-1.04
Request for authorisation to receive products from rest of EU
(*) The data regarding the tax framework provided to applicants include those provided by Spanish Customs and Excises Management Offices, including those located in the Autonomous Communities of Navarre and the Basque Country. The other information refers to documents processed in Excises Management Offices of the Common Territory, i.e. not including managing offices in Álava, Guipúzcoa, Navarre and Vizcaya. (1) In 2005, it was necessary to renew all the cards affected by the change in the composition of the Activity and Establishment Code (CAE) which went from 8 to 13 digits within the framework of community harmonisation.
3.4. Documents processed by Customs The number of foreign trade tax returns managed by Customs continued to rise in 2006,
both the field of intracommunity trade and in trade with third countries.
51
II.-
REPORT
2006
SUMMARY OF OPERATIONS
3. RETURNS PROCESSED
MAIN DOCUMENTS PROCESSED BY CUSTOMS TRADE DECLARATIONS WITH THIRD PARTY COUNTRIES:
NUMBER %
06/05
2005
2006
Import declarations Electronic Paper
3,723,713 3,664,720 58,993
3,885,022 3,842,312 42,710
4.33 4.84 -27.60
Export declarations Electronic Paper
4,226,022 4,158,813 67,209
4,389,049 4,341,511 47,538
3.85 4.39 -29.27
Transit documents - entry (number of headings) Electronic Paper
383,178 367,440 15,738
393,986 388,494 5,492
2.82 5.73 -65.10
Transit documents - exit (number of headings) Electronic Paper
385,479 370,842 14,637
386,728 381,429 5,299
0.32 2.85 -63.80
Declarations of linkage to bonded warehouses Electronic Paper
283,583 280,702 2,881
209,793 208,507 1,286
-26.02 -25.72 -55.36
Introduction Electronic Other media
394,494 326,678 68,016
395,964 343,160 52,804
0.37 5.04 -22.37
Issuance Electronic Other media
263,452 224,751 38,701
259,712 231,297 28,415
-1.42 2.91 -26.58
INTRASTAT DECLARATIONS
For the comparison of interannual data, it must be taken into account that in 2006 the criteria were modified for considering the statistical returns of the Intrastat system in agreement with that established in Eurostat questionnaires (Quality Information on foreign trade, Questionnaire on Methods and ICT/EDI/QUESTIONNAIRE).
52
II.-
REPORT
2006
SUMMARY OF OPERATIONS
3. RETURNS PROCESSED
SPAIN-S FOREIGN TRADE
IMPORTS Community trade Trade with third party countries DELIVERY AND EXPORTING Community trade Trade with third party countries
2005
2006
231,371,566
259,559,026
12.18
140,722,453
151,687,892
7.79
90,649,113
107,871,134
19.00
153,558,995
169,872,016
10.62
110,700,490
119,502,047
7.95
42,858,505
50,369,969
17.53
%
06/05
Amounts in millions of Euros.
3.5. Tax returns with right to refund in the self-assessment system. Tax regulations establish specific situations in which the Administration must make refunds of amounts resulting from taxpayer self-assessments. This occurs, for example, with
Income Tax and Corporation Tax when the sum of the quantities withheld at source and the amounts paid on account exceed the tax due resulting from self-assessment, or in Value Added Tax when the quantity of the deductible amount exceeds the quantity of the amount due.
DECLARATIONS WITH RIGHTS TO AUTOMATIC DEDUCTIONS IN THE SELF-SETTLEMENT SYSTEM CONCEPTS
NUMBER
INCOME TAX Year 2006
12,819,242
Year 2005
12,345,842
Change % 2006/2005
3.83
I, CORPORATION TAX Year 2006
239,510
Year 2005
222,217
Change % 2006/2005
7.78
VAT Year 2006
310,266
Year 2005
276,871
Change % 2006/2005
12.06
53
II.-
REPORT
2006
SUMMARY OF OPERATIONS
3. RETURNS PROCESSED
3.6. Communications related to rapid refunds for persons not obliged to file an Income Tax Return
For this purpose, the Tax Agency has run two campaigns. The first, a campaign for processing refund requests for those who do not have to file an income tax return, on forms 104 and 105. The second, the income tax campaign that includes, in addition to the traditional information, the possibility of requesting a pre-populated tax return. During 2006, 556,727 refund requests (Form 104) were made, of which 46,335 were accompanied by Form 105, communicating additional information.
Taxpayers who do not have to file an income tax return, in accordance with section 97 of the rewritten text of the Income Tax Act, may send a communication to the Tax Office requesting the refund of the amount resulting when the sum of the tax deducted at source and amounts paid on account of the payments in instalments made and, where applicable, the predicted deduction in section 83 of the Act, is higher than the tax liability from the amount of double taxation of dividends and international payments.
REBATE APPLICATIONS USING FORM 104 FOR 2005 SITUATIONS Applications for rebate refund
2004 CAMPAIGN
2005 CAMPAIGN
777,627
556,727
*Amount in millions of Euros.
The requests presented gave rise to 380,772 refunds and 50,637 pre-populated returns with the right to refund.
54
The amount of the refunds was 117.203 million Euro and in the case of pre-populated return, 26.700 million Euro.
II.-
REPORT
2006
SUMMARY OF OPERATIONS
4. TAXPAYER SERVICES
4.1. Information Services 4.1.1. Non-personalised information This information is supplied to citizens on a general basis and without being expressly requested by them. The Tax Agency informs citizens by means of advertising campaigns
using different communication media. It also sends informative letters and edits guides, practical manuals and informative publications, the objective of which is to offer specific information to taxpayers about the taxes that may affect them.
NON-PERSONALISED INFORMATION 2005
2006
VARIATION 2006/2005
Informative letters
36,270,697
38,970,226
7.44
Practical manuals
468,000
429,500
-8.23
11,489,000
15,800,450
37.52
Informative publications Number of copies sent.
4.1.2. Personalised information The Tax Agency also provides information services following request by citizens. General telephone information Through centralised telephone information services (single telephone number for the whole country and independent from the information
services of the Delegations and Administrations, 901 33 55 33) a total of 5,476,178 calls were answered, with a coverage of 92.44% of calls received. For Personal Income Tax Campaign, the tax information platform was reinforced with 555 posts and 884 people between 17 April and 30 June, handling 2,669,253 calls during these months.
GENERAL TELEPHONE INFORMATION 2005
2006
VARIATION 2006/2005
Calls received (1)
6,169,434
5,924,042
-3.98
Calls answered (2)
5,750,511
5,476,178
-4.77
Coverage (2) / (1)
93.21%
92.44%
-0.83
Attempts (1) / (2)
1.07
1.08
0.93
55
II.-
REPORT
2006
SUMMARY OF OPERATIONS
4. TAXPAYER SERVICES
Queries to the INFORMA programme The INFORMA.es programme is the main source for obtaining written information from the Tax Agency. It consists of a database of tax questions and answers that may be accessed by both internal and external users. The INFORMA programme is also available for consultation over the Internet. In 2006, the number of system accesses were 4,727,070, some 83% more than in 2005. Binding tariff information The Community Customs Code enables the consultation of the tariff classification for any specific goods. The information obtained is binding on the customs authorities of all the Member States for import and export operations. In 2006, a total of 516 consultations were handled. 4.2. Assistance services The purpose of the assistence services is to enable taxpayers to meet their obligations. The
Tax Agency provides computer programmes so that taxpayers can complete their own tax returns. Likewise, the Tax Agency directly helps the taxpayer to complete the tax return, either at the Agency's own offices or at the offices of the Agency's collaborating organisations. The Agency also provides tax data to taxpayers for the income tax return and sends, in those where it is appropriate, the pre-populated tax return to the taxpayer's home, if previously requested. 4.2.1. Pre-populated Income Tax Return In order to enable taxpayers to meet their income tax (IRPF) obligations, the Tax Agency provides a pre-populated income tax return or sends tax data to citizens who request it. The pre-populated return, once reviewed by taxpayers, can be confirmed by different methods (by telephone, Internet, SMS, etc.) or completed or modified. The data for 2006 reveal that the service has been definitively consolidated with a significant increase (27.81%) in its demand.
DRAFT INCOME TAX RETURNS
Sending of pre-populated income tax return / tax details Pre-populated tax returns confirmed
VARIATION 2006/2005
2005
2006
11,801,018
15,083,091
27.81
2,873,462
4,197,629
46.08
4.2.2. Computer help programmes Currently, there are help programmes for completing the main tax returns. A large proportion of the tax returns received are made
56
using these programmes, both on paper with PDF code and on magnetic media or over the Internet.
II.-
REPORT
2006
SUMMARY OF OPERATIONS
4. TAXPAYER SERVICES
PERCENTAGE OF TAX RETURNS ENTERED INTO THE DATABASE PREPARED USING THE HELP PROGRAMS TYPE
2006
Personal Income Tax (IRPF)*
97.89
Value Added Tax (VAT)
83.54
CORPORATION TAX
96.89
*The pre-populated tax returns confirmed through any of the possible channels are also included.
Other help programmes for completing tax returns The Help Programmes made available to taxpayers during 2006 were the following: Tax Returns: Income (PADRE programme), Wealth (714), Corporation (201 and 2 2 5 ) , VAT (390, 392, 311 and 300) and Modules (131 and 310). Informational returns: Forms 180, 182, 184, 188, 190, 193, 198, 296, 345, 347 and 349. Printed module for Payments in instalments for Forms 110, 115, 123, 130, 131, 202, 300, 310 and 311. 2007 withholding calculations. 4.2.3. Appointment service The appointment service is designed to arrange appointments over the Internet (without the user certificate) or by telephone at the number
901 22 33 44, although in certain exceptional circumstances they can also be arranged directly at the Tax Agency offices. As an innovation during the 2005 Income Tax Campaign, it was possible to arrange an appointment to correct the prepopulated tax return over a voice recognition unit (VRU). During 2006, a total of 3,700,038 appointments were arranged. 4.2.4. Call centre This service was started to maximise the speed of tax refunds to people who do not have to file an income tax return. Currently, this service not only informs about the procedure for rapid refunds and calculates the amount of refund, but also handles any doubts or discrepancies that may arise, informs on the status of the refund process and enables other procedures without needing to visit the Agency's offices.
57
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REPORT
2006
SUMMARY OF OPERATIONS
4. TAXPAYER SERVICES
TELEPHONE HELPLINE CENTRE (CAT)
Management of rapid income tax refund (1) Management of pre-populated tax declarations (2) Management of maternity credits (3) Centralised appointments (3) Change of address (3)) Collection (4)
2005
2006
VARIATION 2006/2005
817,060 1,302,348 225,601 45,360 161,746 90,101
752,210 1,043,726 283,975 58,531 151,562 153,610
-7.94 -19.86 25.87 29.04 -6.30 70.49
(1) Includes the number of calls answered and the procedures performed (CAT, OTAC and VRU). (2) Includes the number of calls answered by the Taxpayer Call Centre (OTAC), and CAT. (3) Number of calls answered. (4) The number of calls answered by CAT are included, relating to: recording requests for deferred and payments in instalments; refunds as well as subscription to Tax Agency services.
4.2.5. Voice recognition units on 901 12 12 24 This is an automatic service operational 24 hours per day. The following services were provided in 2006 by automatic telephone units with voice recognition: requests for identification labels, automatic information about income tax, VAT and Corporation tax refunds, requests for tax data for the income tax return, confirmation of letters send to taxpayers who did not have to file a tax return in the previous year, confirmation of prepopulated tax returns with amounts to refund or to pay, request for appointment to correct the pre-populated tax return and requests for income tax certificates. The total number of calls received on these voice recognition units was 5,917,619. 4.2.6. Advance credit of deduction for working mothers Women with children under three who are employed or self-employed and are registered with Social Security or mutual fund have the right to a deduction in their income tax of up to 1,200 Euro per year for each child under three years of age. The Tax Agency paid an amount of 650.177 Million Euro, for a total of 733,159 requests presented in 2006.
58
4.2.7. Speeding up customs clearance The average clearance time indicator is that which is used to measure the time between the time of acceptance of the customs declaration, either physically (for declarations of document checking, that are assigned to the orange circuit, or for the physical checking of goods - red circuit) or by electronic means (for other declarations - green circuit) and the moment of clearance. It reflects the time of administrative processing of the customs declarations. This indicator was 28.32 minutes (in 2005 it was 25 minutes). The average processing time (availability time) is the time between the moment at which the declaration is presented electronically (irrespectively of the circuit to which it is assigned) and the moment of clearance. This indicator reflects the processing time of customs declarations, including the time attributable to the customs representatives. This indicator was reduced from 5.52 hours in 2005 to 4.73 hours in 2006. 4.3. Facilities for payment of tax liabilities The tax debts are collected by authorised credit agencies (collaborating organisations in tax collection management).
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REPORT
2006
SUMMARY OF OPERATIONS
4. TAXPAYER SERVICES
4.3.1. Collaborating organisations On 31 December 2006, the Tax Agency had authorised 189 organisations to act as collaborators for tax collection, which collected a total of 220,871 million Euro.
The distribution between the different types of credit organisation is described in the following table:
COLLABORATING ENTITIES
AMOUNTS 2005
2006
VARIATION 2006/2005
Private banks
131,215
143,933
10%
Savings banks
60,252
71,632
19%
4,481
5,306
18%
195,948
220,871
13%
Cooperative and rural banks TOTAL
COLLECTION BY COLLABORATING ENTITIES 2006 AMOUNTS 2.40%
32.43% Savings banks Private banks
65.17%
Credit cooperatives
Amounts in millions of Euros.
The collaborating organisations are subject to monitoring and control systems by the Tax Agency. During 2006, checking operations were performed on twenty-seven organisations. A total of 8 disciplinary proceedings were started. In addition, 11 proceedings were resolved, with the result of the adoption of restrictive measures (temporary suspension) of the authorisation granted and 177 settlements of default interest due to payment outside the deadline by 82 organisations.
4.3.2. Deferred and payments in instalments Deferred payments and payments in instalments are an effective way of facilitating compliance with obligations. This possibility affects both liabilities in the voluntary period as well as those in the execution period. The following graphic shows the evolution in the number and amount of deferred payments requested in 2005 and 2006.
59
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REPORT
2006
SUMMARY OF OPERATIONS
4. TAXPAYER SERVICES
EVOLUTION ON APPLICATION FOR DEFERREMENTS
6,000 4,974.97 5,000 4,000 2,854.95
3,000 2,000 1,000
490,594
473,600
0 2005
2006
Applications
Amounts
Amounts in millions of Euros.
The following table offers a summary of the management of deferred payments during the
2006 tax year, with a breakdown of the liability situation.
SUMMARY OF POSTPONEMENT MANAGEMENT 2006, NATIONAL TOTAL SITUATION OF THE DEBT
TOTAL APPLICATIONS*
GRANTED
DENIED
TOTAL SOLVED
PENDING AT 31-12-06
TOTAL NUMBER
473,600
289,114
129,239
418,353
55,247
AMOUNT
4,974.97
1,578.49
1,063.66
2,642.15
2,332.82
Detail in numbers and amount in millions of Euros * The total number of requests includes those pending at the start of 2006.
4.4. Other services 4.4.1. Issue of tax certificates During 2006, a total of 5,082,535 tax certificates were issued, a reduction of slightly over 6% compared with the previous year. This decrease is fundamentally explained by a reduction of
60
22.11% in the certificates issued by the Tax Agency's offices, as other channels of requesting certificates, such as over the Internet with a digital certificate, have significantly increased. The reduction in the number of certificates issued is also explained by the supply of
II.-
REPORT
2006
SUMMARY OF OPERATIONS
4. TAXPAYER SERVICES
information by electronic means to Autonomous Communities and Local Organisations, made in order to avoid the need for certificates. Specifically, during 2006, a total of 6,691,386 supplies of information to autonomous and local bodies were made, an increase of more than 10% compared with the previous year. These supplies of information have avoided the direct provision by citizens of tax certificates or copies of their tax returns. 4.4.2. Advanced price agreements In compliance with the laws regulating every tax, taxpayers can request the Tax Agency to determine in advance and in a binding way the valuation for tax purposes of income, products, goods, expenses and other elements determining the tax liability. During 2006, a total of seventeen early agreements of binding operations were resolved, providing the following results: thirteen approved, two denied and in another two cases they were withdrawn by the applicants. On 31 December 2005, there were fifteen requests pending resolution, to which nineteen new
requests presented during the tax year were added. On 31 December 2006, there were seventeen requests pending resolution. In addition, eight requests for prior agreements for R+D+i, five of which were resolved in the tax year with the following results: two requests approved, two denied and one withdrawn. Given that two requests were pending resolution on 1 January 2006, at the end of the tax year there were five requests pending resolution. Likewise, forty-three new requests for criteria for temporary accounting distinct from amounts due, to which the nineteen pending requests from 2005 have to be added; in the tax year, sixty-one requests were resolved with the following results: Thirty-five approved, twenty-one denied and five withdrawn. Lastly, the following table reflects the number of reports finalised in 2006 in the various programmes regarding reports issued by the audit bodies at the taxpayer's proposal.
NUMBER OF CASES FINALISED IN PROGRAMMES RELATING TO: REPORTS ISSUED BY AUDITING UNITS AT THE REQUEST OF THE TAXPAYER CRITERIA FOR THE COSTS OF ALLOCATION TEMPORARY OF REVENUE ABANDONMENT AND COSTS OF SPECIAL VALUATIONS DEPRECIATION OTHER THAN EXTRAORDINARY ECONOMIC REINVESTMENT LINKED (NON-LINKED PLANS ACCRUALS REPARATIONS EXPLOITATION PLANS OPERATIONS OPERATIONS)
TOTALS
SPECIAL DELEGATIONS
242
24
6
15
16
20
44
367
CENTRAL DELEGATIONS
103
0
23
1
0
5
22
154
TOTAL
345
24
29
16
16
25
66
521
Detail in numbers and amount in millions of Euros
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II.-
REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
T he deployment over the last two years of the Fraud Prevention Plan, maintaining the assistance services to facilitate taxpayers in voluntarily complying with their obligations and reinforcing the control activities, both extensive and selective, has resulted in an important improvement in tax compliance.
This can be seen on analysing the relationship between the growth of our economy and the increase in tax collection. Specifically, the total gross tax collected, managed by the Tax Agency, represents an increase of 12.5% in 2006, which is the highest reached in the last nine years. The amount of tax collected grew 11.6%, almost four points higher than the nominal GDP (7.8%). RATES OF VARIATION IN TAX REVENUE AND GDP
15
14.1
12 9
8.0
8.6
11.6
8.2 7.3
6
6.3
7.1
01
02
7.4
7.8
7.8
05
06
5.7
3 0 03
04
-3 Revenue
The control activities have two main objectives: the discovery of taxpayer's non-declared liabilities and the collection of the debts not paid voluntarily within the established time period. Control activities can be: 1. Extensive. These are mass control measures, which are carried out with powerful computer support in relation to all tax returns and, especially, during the annual campaigns for the various taxes and are fundamentally based on the information available in the Tax Agency's databases. 2. Selective and investigatory. These are controls on taxpayers who, according to the objective criteria, are considered to present a
62
GDP
higher risk of evasion of their obligations to pay taxes. 3. Tax collecting. These are actions directed at receiving payment of tax credits and other public rights that were not paid during the voluntary period by the debtor. 5.1. Extensive checking 5.1.1. Extensive domestic taxes
control
actions
on
5.1.1.1. Clean-up of the tax roll During 2006, a series of tasks leading to the cleanup of the tax roll records of company owners, professionals and withholders were performed, having developed the following two campaigns:
II.-
REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
Comprehensive tax roll clean-up (DCI):
5.1.1.2. Verification of annual tax returns
– Letters issued: 182,602
Personal Income Tax
– Taxpayers visited: 685
As in previous years, the income tax verification campaign was undertaken in two distinct phases.
– Taxpayers removed from the DCI having had all their data cleaned: 265,061 Clean-up of the Index of Organisations and demands sent to those not having an obligation to file a Corporation tax return (DIE): – Demands issued: 174,999 – Provisional cancellations issued: 93,014
The first phase is the mass verification of the tax returns with the aim of detecting errors and discrepancies in the data declared compared with the information in the Tax Agency databases. A total of 515,835 provisional settlements were issued for an amount of 458.562 million Euro.
INCOME TAX 2004
SETTLEMENTS NUMBER OF SETTLEMENTS TOTAL
515,835
% 100.00
AMOUNT % VARIATION 04/03
AMOUNT*
%
% VARIATION 04/03
AVERAGE AMOUNT**
5.04
458.562
100.00
25.85
888.97
*Amount in millions of Euros. ** Average amount in Euro.
Within the first phase of mass verification, tax returns are classified by a series of filters checking for possible arithmetic or regulatory errors, detecting discrepancies between the data
declared and that attributable to information declarations and for specific sections of the tax return, checking that these do not exceed certain limits or amounts.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
In the second phase of the verification campaign on those filing and not filing a tax return, a total of 18,697 settlements were made for an amount of 18.644 million Euro. However, it should be taken into account that at the time of obtaining these data the "2004 Income Tax checking" campaign has still not been concluded.
The overall results of the 2004 Income Tax checking indicate an amount of 477.206 million Euro collected from a total of 534,532 taxpayers, as can be seen in the following table:
INCOME TAX 2004
NUMBER Provisional settlements of tax returns presented 2nd Stage (including declarants and non declarants) TOTAL
515,835 18,697 534,532
% VAR. PREVIOUS YEAR
AMOUNT
% VAR PREVIOUS YEAR
5.04
458.562
25.85
55.73
18.644
127.75
6.25
477.206
28.09
Amount in millions of Euros.
Additionally, the 2005 Income Tax checking started in 2006. Corporation tax In 2006, a total of 21,253 settlements were made for Corporation tax 2004 for a total amount of 126.045 million Euro, an increase of 82% compared with 2006. These data do not reflect the verifications carried out in Large Companies, which, because of their specialised nature, are analysed in depth in the section "Extensive control activities with large companies". Value Added Tax In 2005, with the aim of verifying the annual summary return for 2005, not including the checks carried out by the Central Delegation of Large Taxpayers nor in the Regional Units of Management of Large Companies, a total of
64
75,161 settlements were made for an overall amount of 457.425 million Euro. These data are not definitive, given that the campaign will finish during 2007. Furthermore, the VAT 2005 control campaign started in 2006. 5.1.1.3. Checking of periodic returns The existence of a roll of company owners, professionals and withholders, which contains, among other information, their periodic obligations, enables controlling those who do not comply with their obligations, by means of crosschecking against the self-assessments filed. The checking of periodic obligations is achieved through the Self-Assessment Filing Control System (SCPA). Two branches of processing by reference level are distinguished in this system.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
1. Obligations with certain reference level which also include: a) Control activities carried out on taxpayers included in the objective estimation system for Income Tax, regarding Form 131 (Payments
in instalments) and Form 310 (simplified VAT system) corresponding to the third and fourth quarters of 2005 and the first and second quarters of 2006 have resulted in the filing of 3,316 late self-assessments for 4.5 million Euro.
VERIFICATION OF PERIODIC DECLARATIONS USING FORMS 131 AND 310
NUMBER OF SELF-SETTLEMENTS OUT OF TIME
3,316
AMOUNT PAID IN*
4.524
*Amount in millions of Euros.
b) Checking activities carried out for control of the correct presentation of payments in instalments on account for Corporation tax, in those cases where these payments are made in reference to the full quota of the last tax
year reduced by the deductions, withholdings and instalments, have also resulted in the filing of 1,206 self-assessments for the third settlement period of 2005 and the two first settlement periods of 2006.
VERIFICATION OF PERIODIC DECLARATIONS USING FORM 202
NUMBER OF SELF-SETTLEMENTS PRESENTED AMOUNT PAID IN*
1,206 13.266
*Amount in millions of Euros.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
2. Obligations with estimated reference level, which is checked quarterly and includes: The sending of a notification letter without acknowledgement of receipt to those taxpayers who have failed to comply in that quarter, requesting them to file the corresponding return. The sending of a demand with acknowledgement of receipt, requesting the taxpayer to file the returns for the tax year.
The activities performed during the checking campaigns for periodic self-assessments in the third and fourth quarters of 2005 and the first and second quarters of 2006 resulted in the filing of 102,989 late self-assessments for an amount of 95.5 million Euro. The main tax return forms checked in these activities are the following: Form 110 (withholdings), Form 130 (staged income tax payments for direct estimation) and Form 300 (quarterly VAT).
VERIFICATION OF PERIODIC OBLIGATIONS USING THE SYSTEM FOR THE CONTROL OF PRESENTATION OF SELF-SETTLEMENTSESTIMATED REFERENCE LEVEL (Q3 and Q4 2005 and Q1 and Q2 - 2006)
SELF-SETTLEMENTS PRESENTED NUMBER
AMOUNT*
102,989
95.486
AVERAGE AMOUNT** 927.15
*Amount in millions of Euros. ** Amount in Euro.
5.1.1.4. Checking of periodic returns: VAT Exporters and other Economic Operators VAT taxpayers included in the register of Exporters and other Economic Operators file monthly periodic tax returns. These returns are processed using a computer application similar
66
to that used for Income Tax, Corporation Tax and VAT except that being monthly they are operated throughout the corresponding year. In the 2006 tax year, 217,763 tax returns were filed. These data are not definitive, given that the campaign for this tax year will finish during 2007.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
VAT RETURNS PRESENTED BY THOSE ON THE REGISTER OF EXPORTERS TOTAL RETURNS. 2005
TOTAL RETURNS. 2006
% FILED FILED 06/05 ELECTRONICALLY ELECTRONICALLY 2005 2006
% 06/05
Positives
36,780
38,559
4.84
29,480
38,559
30.80
To refund
108,476
110,285
1.67
90,314
111,285
23.22
To compensate
30,854
32,522
5.41
24,963
35,522
42.30
Refund/ Compensation
35,311
35,164
-0.42
28,234
35,164
24.54
1,546
1,233
-20.25
923
1,233
33.59
212,967
217,763
2.25
173,914
221,763
27.51
Negatives TOTAL VAT
5.1.1.5. Register of Exporters and other Economic Operators Starting from 25 October 2006, a new application for the processing for the Register of Exporters and other Financial Economic came into effect.
In the time during which it has been operational, the application has processed 411 applications to join the Register, of which 18 have been approved, 62 denied and, in 97 cases, the taxpayer has withdrawn.
NUMBER OF CASES 2006 New registration declarations
411
End of registration declarations
213
New registrations approved
18
New registrations denied
62
New registrations not proceeded with
97
Audit
23
5.1.1.6. Special Tax on Certain Means of Transport (IEDMT) During 2006, the procedure for control and management of the IEDMT, based on the mandatory electronic filing of the tax returns not containing exemptions or exceptions, was consolidated.
These tax returns are subject to automatic classification, which is standardised and immediate, using a computer application that generates an "electronic registration code". The entire system is based on the agreement between the Tax Agency and the National Traffic Department signed in February 2006 (an
67
REPORT
2006
II.SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
agreement replacing other agreements prior to 2005). Its whole purpose is the fight against and the detection of fraud, whilst speeding up the processing of vehicle registrations and other means of transport.
The computer application for the control of IEDMT returns started to be established in trials in the last quarter of 2005 and has now been in effective use since 1 January 2006. During 2006, a total of 1,655,044 returns (Form 576) were filed for this tax.
NUMBER OF FORM 576 CASES 2006 Declarations presented
1,655,044
Sent to Customs and Excises Audit
7,406
Declarations required
10,900
Checked and finalised
64,576
5.1.2. Activities on taxpayers in Special Small Businesses regime (hereafter modules scheme) The results of activities for regularising the tax situation of taxpayers in modules, that arose
through audit activities and the provisional settlements during 2006 were as follows: RESULTS OF CONTROL ACTIVITIES FOR MODULES 2006
NUMBER
AMOUNT
9,749
3.021
Audit Reports
32,431
44.616
TOTALS
42,180
47.637
Provisional assessments issued
Amount in thousands of Euros.
5.1.3. Extensive control activities with large companies The results of settlements of the tax situation of large companies are as shown in the following table, coming to 503.85 million Euro.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
LARGE COMPANIES SETTLEMENT RESULTS OF TAXATION MANAGEMENT TOTAL SETTLEMENTS Corporation Tax VAT Withholdings
9.652 55.579 49.040
TOTAL SETTLEMENTS
114.271
REDUCTION FOR REFUNDS AND COMPENSATION Corporation Tax VAT Other taxes
26.189 292.563 0.019
TOTAL REDUCTIONS
318.771
REDUCTION FOR NEGATIVE Corporation Tax Grup of companies TOTAL REDUCTIONS TOTAL SETTLEMENT RESULTS
2.338 68.468 70.806 503.848
It only includes those settlements previously contracted and reductions in refunds and refunds, without including the amounts from other activities such as the processing of sanctions, interest for late payments, etc. which would increase the result substantially. Amount in millions of Euros
5.1.4. Control activities on the Intrastat tax returns During 2006, the provincial Intrastat offices continued their control tasks for compliance with the Intrastat statistical obligations, both by issuing the corresponding demands for non-compliance and by means of cleaning the quality of the statistical data, fundamentally by means of sending demands for formal errors in the declarations and in the communication of average prices. As a result of this control performed by the Provincial Intrastat offices, the number of demands for non-compliance decreased by 9%. Communications of average prices are sent to those operators whose tax returns contain data
that appear incorrect from the point of view of the relationship between the goods code, the weight or number of units and the value declared. The trend, already indicated in previous years, both in the reduction in the number of demands for errors (38%) and in the reduction in the number of communications for average prices (2%) has continued. The operators, having exact and timely knowledge of the errors and inconsistencies, increasingly resolve them without the need to send out demands. At the same time, section 9 of Act 36/2006 of 29 November on measures for the prevention of tax fraud has granted the exercise of disciplinary
69
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
power for infringements against the statistics of exchange of goods between Member States of the European Union to the Department of Customs and Excises (from the State Agency for Tax Administration). 5.1.5. Management and auditing activities on Excises The management and auditing activities on Excises are characterised by involving both prior checks and checks simultaneously with the time of the tax event. This is motivated because in these cases the high tax rate combines with
exemptions, exceptions and tax refunds depending on the destination with non-monetary taxable bases. In the performance of their duties, the auditors perform prior activities in order to regularise the tax situation of the taxpayers they are checking. The performance of prior actions is motivated by the fact that the checking of accounts is limited to the registers required by law and the Regulation of Excises. The results of this auditing activity undertaken in 2006 is reflected in the following table:
INTERVENTION ACTIVITY
2005
2006
% VARIATION 2006/2005
Number of actions Documented Cases Audit Reports formulated Sanction files
117,807 10,515 117 254
128,702 10,032 182 355
9.25 -4.59 55.55 39.76
TOTAL
128,693
139,271
8.22
During 2006, an increase in the number of auditing actions was made to promote the work for preventing tax fraud.
70
More laborious activities with greater complexity were completed, such as the stocktaking and accounting tables which indicate a higher prevention activity.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
5.2. Selective checking and investigation activities In 2006, the orientation of the Fraud Prevention Plan was consolidated, devoting more resources to it and to new units for the fight against more complex and more socially reprehensible tax fraud, reinforcing the investigation activities against possible offences and organised tax fraud schemes. On occasion, the execution of these activities requires the exercise of powers of judges and prosecutors and the close collaboration of the judicial police. In consequence, the number of traditional selective control activities has decreased in order to increase their quality and depth and the number of people devoted to in-depth investigation has been significantly increased. The result has been an increase in the amount of settled debt and a strong increase in investigation
activities on organised offences, which has given rise to a significant increase in the number of late tax returns filed, of precautionary measures adopted to assure the collection of the amounts defrauded, the reduction in the number of requests for VAT refund in the sectors investigated, etc. The activities related with the new forms of investigation enable the discovery of significant volumes of fraud, the quantification of which is difficult to specify as these activities are currently sub judice. In addition, in 2006, the direct collection effect or tax collections from activities performed to regularise tax non-compliance, which includes the income from the control activities and the reduction in refunds, increased by 15.1% compared with 2005.
DIRECT COLLECTION EFFECT 2005
2006
4,613
5,310
VARIATION 06/05 15.1%
Amount in millions of Euros.
5.2.1. Auditing activities (traditional control) Following the integrating principle of the activities that promoted the Fraud Prevention Plan, the aggregated data corresponding to the auditing activities performed in 2006 on domestic taxes, taxes on foreign trading operations and Excises are presented below.
The increased depth of the activities and the selection of the taxpayers with the highest turnover and greater auditing complexity has resulted in a reduction in the number of taxpayers checked, but at the same time an increase in the amount of settled debt because of the restatements made and the preferential concentration on the sectors of highest risk.
71
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
AUDIT DEPARTMENT 2004
2005
2006
Number of tax payers audited
34,994
33,153
27,345
Number of audit reports
79,502
79,567
71,679
3,567.47
3,869.37
3,932.66
Debt settled* *Amount in millions of Euros.
One sector for preferential scrutiny for the inspection services is the real estate sector, and
there has been an increase in 86% in audits made, achieving a strong increase in settled debt.
INSPECTION ACTIVITIES IN THE PROPERTY SECTOR
Number of taxpayers checked Debt settled*
2004
2005
2006
VARIATION 06/05
VARIATION 06/04
2,366
3,498
6,516
86%
175%
373,255
551,874
741,323
34%
98%
*Amount in thousands of Euros.
5.2.2 New selective investigation and tax offence activities The new forms of working in activities for the audit of fraud and an improved distribution of resources has enabled the undertaking of specially complex investigation activities and the
72
discovery of very significant volumes of fraud, the auditing of assets and the adoption of precautionary measures for the future recovery of defrauded debts. These activities do not always culminate in court proceedings but have a strong impact on the voluntary compliance with tax obligations.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
In 2006, focusing attention on the sectors particularly at risk from fraud (computer components, telephone materials, buying and selling of gold, top-of-the-range cars, etc.), indepth investigations were performed for the discovery of fraud schemes in VAT and other taxes, trust fund operations, money laundering, issue and sale of forged invoices, etc. At an initial estimation, the uncovered fraud exceeds 3,000 million Euro. In many cases, the activities result in judicial assistance, Supreme Court or corresponding courts.
Other results of selective control Controls of the applications to join the Register of Intracommunity Operators In order to prevent the appearance of companies involved in organised fraud in intracommunity operations, the controls on the applications to join the Register of Intracommunity Operators have been reinforced. The applications have been subjected to rigourous review and a total of 5,107 were denied, as shown in the following table.
CONTROL OF NEW REGISTRATIONS ON THE REGISTER OF INTRACOMMUNITY OPERATORS
Applications for new registrations Taxpayers visited and analysed in depth Denials of access
2005
2006
36,013
52,527
18,082
36,906
5,098
5,107
VARIATION 06/05 45.85% 104.10% 0.18%
Late tax returns In addition to the discovery of important frauds, these in-depth investigation activities have the side effect of a strong increase in the number of voluntary restatements by means of the presentation of late tax returns.
In addition to 10.19% more late tax returns being filed than in 2005, these have been for much higher self-assessed amounts (20.05%) than in the previous year.
*Amount in millions of Euros.
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REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
Impact of these activities in sectors receiving priority attention A significant reduction has also been noticed in the number of requests for VAT refunds in the sectors in which activities to prevent fraudulent schemes have been most active. Specifically, the number of VAT refund requests in the telephony
and computing sectors have reduced very considerably, sectors which were earmarked for preferential investigation by the Tax Agency. In these sectors, the request for VAT refund is one of the main routes of fraud.
CHANGES IN REQUESTS FOR VAT REBATES 2003
2004
2005
2006
IT components
30%
-54%
-24%
-52%
Telephony
30%
-63%
-18%
-53%
Other checking activities In order to encourage proper tax control, it is necessary to capture, request and manage specific information with tax implications,
checking or improving on what is obtained from the various tax return Forms filed by the taxpayers, fundamentally the informational forms.
REQUIREMENTS AND DATA CAPTURE (Amount of data obtained)
A) TOTAL NUMBER OBTAINED AT 31-12-06
17,396,939
B) BREAKDOWN BY THE DATA CAPTURE BODY: 17,126,140
CENTRAL INFORMATION TEAM (ECI)
270,799
AGENCY DELEGATIONS C) COMPARISON WITH PREVIOUS YEARS: 2004 ECI Tax Agency Delegations TOTAL
74
2005
2006
13,880,507
18,629,043
17,126,140
25,258
522,923
270,799
13,905,765
19,151,966
17,396,939
II.-
REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
The following tables reflect the importance for the Tax Agency of exchanging information with
Tax Agencies of other countries within the framework of control actions.
EXCHANGE OF INFORMATION WITH OTHER COUNTRIES, DIRECT TAXES
EXCHANGE OF INFORMATION FOLLOWING REQUEST (1) FROM SPAIN TO THIRD COUNTRIES
FROM THIRD COUNTRIES TO SPAIN
169
440
Information requests
(1) The figures refer to the number of proceedings handled, independently of the number of taxpayers affected and the activities undertaken. Spain's petitions have been sent to 25 countries, 80% of which are concentrated in EU member states; of the 440 forms received, 85% are from member states
AUTOMATIC EXCHANGE OF DATA FOR DIRECT TAXES Number of cases:
Number of taxpayers:
DATA SENT TO OTHER COUNTRIES (2)
25
1,854,821
DATA RECEIVED FROM OTHER COUNTRIES (3)
25
596,730
DATA EXCHANGED SPONTANEOUSLY FOR INDIRECT TAXES (4) Number of cases: DATA SENT TO OTHER COUNTRIES (5) DATA RECEIVED FROM OTHER COUNTRIES (6) (2) (3) (4) (5) (6)
The The The The The
Number of taxpayers:
46
48
168
3,452
proceedings affect 20 countries. proceedings affect 17 countries. data are fundamentally from Form 296 and the 2005 tax year. proceedings affect 5 countries. proceedings affect 16 countries.
75
II.-
REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
MUTUAL ASSISTANCE FOR VAT
FOLLOWING REQUESTS (NOT PART OF PROCESSES) FROM SPAIN TO THIRD COUNTRIES Information requests
FROM THIRD COUNTRIES TO SPAIN
488
2,104
OTHER REQUESTS RECEIVED VAT numbers (cases processed)
501
-
Various requests
105
-
FROM SPAIN TO THIRD COUNTRIES
FROM THIRD COUNTRIES TO SPAIN
FOLLOWING REQUESTS (PART
Information requests
765
2,670
WITHOUT PRIOR REQUEST (NOT PART OF PROCESSES) FROM SPAIN TO THIRD COUNTRIES Sending of information (spontaneous) without prior request
FROM THIRD COUNTRIES TO SPAIN
26
438
110
317
WITHOUT PRIOR REQUEST (PART OF PROCESS) Sending of information (spontaneous) without prior request
AUTOMATIC INFORMATION(1)
VAT numbers assigned (2) VAT numbers cancelled VAT returns to non-established persons (3)
SENT BY SPAIN
RECEIVED BY SPAIN
2,573
335
2,326
—
37,927
12,215
New vehicles
—
151
Missing Traders (4)
—
277
(1) Corresponds to the commitments assumed by Spain for sending automatically, without previous request, specific information, and logically the automatic receipt of such information. The number of files sent and received are listed. (2) Assigned to taxpayers of other member states, in the case of information supplied by Spain and assigned to Spanish citizens in the case of information received. (3) Refunds to Spanish citizens in the case of information received and refunds to citizens outside Spain in the case of information supplied by Spain. (4) Operators implicated in community VAT defrauding schemes on which action has to be taken rapidly before they disappear.
76
REPORT
2006
II.SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
Tax offences In relation to conduct that may be presumed a tax offence or generally offences of fraud against the Public Treasury, during 2006 the Tax Agency has continued to advance on the lines laid out by the Tax Fraud Prevention Plan. In order to guarantee the effectiveness of the fight against the most complex and serious tax
fraud, at times the investigation activities performed by the Tax Agency require their swift reporting to the Tax Ministry so that agreement with judicial bodies can be reached to undertake more specific verification activities. The activities of the Tax Agency in 2006 gave rise to the reporting of 710 alleged tax offences, estimated at 659.90 million Euro in defrauded tax.
ALLEGED TAX OFFENCES REPORTED
YEARS
Total tax offences NUMBER
AMOUNT*
2005
793
926.86
2006
710
659.90
* Amounts in millions of Euros.
77
II.-
REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
Tax Offence Observatory In order to strengthen the efficiency of the fight against tax offences, the agreement dated 30 June 2005 between the Tax Agency and the State Department of Justice on tax fraud prevention set up an observatory with the job of acting as a forum for monitoring the effectiveness of complaints and lawsuits lodged, for studying proposals and suggestions for reforming the concept of tax offence and other types of fraud against the Tax Administration and for studying measures to improve the results of the fight against fraud in the penal system. In its first report, the observatory states that the number of guilty verdicts, either total or partial, is clearly higher than the number of acquittals, the analysis of which highlights the importance of reinforcing the investigation and documentation of the facts.
organised tax crime, conspiracies, and especially those aimed at defrauding by manipulating VAT and certain Excises, which tend to involve increasingly sophisticated professional fraud activities, whose detection and efficient eradication requires classic legal instruments and the powers of the tax authorities to be updated, and their investigative powers to be suitably strengthened. Export Refunds and Reduction in Refunds Some of the actions carried out in the area of tax audit applied to external trade operations are not reflected in previously contracted debt, such as Export Refunds and Reduction in Refunds. In the area of export refunds in 2006, 51 checks were carried out, to the sum of 12.016 million Euro.
The report also draws conclusions about the particularly damaging and worrying nature of
COMPENSATION FOR EXPORTS 2005
78
2006
Number ACTIVITIES
DEBT Mill. euros
Number ACTIVITIES
DEBT Thousand euros
DEBT % 06/05
41
14.078
51
12.016
-14.65
II.- SUMMARY OF
REPORT
2006
OPERATIONS
5. TAX AND CUSTOMS CONTROL
The Checking Plan to be carried out in the area of refunds is fixed each financial year by the General State Comptoller.
carried out have observed a reduction in this type of irregularities, which explains the reduction in uncovered debt in 2006.
The most significant irregularities discovered in 2005 and 2006 are in the export of meats, which due to the diversity and geographic dispersion of the agents participating the irregularities, a policy of centralised control has been put into place by the Department's Investigative Services. The most recent checks
In the area of mutual assistance activities, legally based on Regulation (EC) 515/97 and on the agreements signed to that effect with the European Union and third countries, the following collaborative actions have been carried out:
COOPERATION
AT THE REQUEST OF SPAIN
AT THE REQUEST OF MEMBERS STATES
WITH MEMBER STATES
26
131
WITH THIRD COUNTRIES
29
226
5.2.3. Customs Surveillance Actions In addition to taking part in new actions of selective investigation and tax offences, described in the previous section, it carries out two types of tasks. Control tasks such as detection of smuggled goods in customs areas, apprehending ships transporting cocaine, reporting money laundering crimes and seizing goods that infringe industrial or intellectual property rights. In addition, preventive tasks such as patrolling with boats in order to discourage the possible entry of smuggled
goods and sealing off establishments and manufacturing equipment in order to prevent evasion of special excises. Some of the results achieved are detailed below: The total value of goods seized, discovered and confiscated by Customs Surveillance bodies in 2006 reached 3,860.58 million Euro. In the fight against drugs smuggling, 148.9 tons of hashish and 32.6 tons of cocaine were seized, the biggest number ever of seizures of this last substance, and 12 open sea operations.
79
REPORT
2006
II.-
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
In the fight against tobacco smuggling, 2006 was also the best year since records began, with 15,175,552 packets of cigarettes seized (an 87% increase on 2005, with 65% of the confiscated product being fake). Of 6,532 cases of smuggling brought to court, 5,971 were criminal cases and 561 were administrative offences. 1,979 actions not related to smuggling were carried out, 549 of which were for money laundering. In the area of the fight against money laundering and tax fraud, 77 reports were conducted, 30.5% more than in the 2005 financial year, and with an increase in monetary value of 36.6%. In the area of excises, 7,743 procedures were carried out.
80
As a result of the activity carried out, 1,744 people were detained or found guilty (1,594 for smuggling and the remaining 150 for other offences). It is also appropriate to highlight the participation of the Tax Agency in the Joint Customs Operations that are co-ordinated from within the Council's Customs Co-operation Group. These Operations have been carried out for many years, at first in a bilateral or regional way between a few countries, and over time participation has increased on a Europe-wide level. It has been demonstrated that they are the best instrument for strengthening co-operation between Customs Administrations in their work to fight against fraud and organised crime. The Tax Agency takes an active part in the majority of these large scale Joint Customs Operations. It has also organised several of them over the last few years.
II.- SUMMARY OF
REPORT
2006
OPERATIONS
5. TAX AND CUSTOMS CONTROL
5.2.4. Analytic control carried out in the Customs Laboratories The following table shows the analytic control activity carried out in Customs laboratories of
samples from goods destined for external trade or subject to the Special Taxes regulations: CHANGES IN NUMBER OF SAMPLES ANALYSED
NUMBER OF SAMPLES
LABORATORY 2004
2005
2006
CENTRAL
7,522
8,278
8,246
BARCELONA
2,734
2,396
2,292
202
79
SEVILLE
1,049
1,309
1,605
VALENCIA
1,232
1,730
1,990
12,739
13,792
14,133
IRÚN(1)
TOTAL (1) Laboratory closed in 2005.
5.3. Tax Collection Management This section analyses the management of tax collection carried out by the Tax Agency of tax debts and fines owed to the Agency and not voluntarily paid, and the public resources of other bodies which it is responsible for collecting
by law or agreement. The following table shows a summary of the activity carried out in 2006, broken down according to the Bodies issuing the debt to be managed. GENERAL MANAGEMENT SUMMARY 2006, NATIONAL TOTAL
ISSUING BODIES
PENDING 01/01/2006
LOADED DURING 2006
TAX AGENCY DEBTS
7,416.22
3,891.20
11,307.42
3,564.20
7,743.22
DEBTS BETWEEN ENTITIES
1,156.24
1,131.87
2,288.10
947.64
1,340.46
TOTAL
8,572.46
5,023.07
13,595.52
4,511.84
9,083.68
TOTAL TO MANAGE
AWAITING TOTAL MANAGEMENT MANAGED AT 31/12/06
Amounts in millions of Euros.
81
II.-
REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
The enforced collection period is started in the event that a debt is not paid during the voluntary period. Notification of an enforced collection ruling is carried out, and the enforced collection procedure is started. Enforced collection rulings issued during the 2006 financial year reached the sum of 5,023 million Euro; 77% of this total corresponded to debts to the Tax Agency and the rest to other bodies.
5.3.1. Debts from settlements carried out by the Tax Agency The distribution by origin of the total debt to be managed is shown in the following table:
COLLECTION MANAGEMENT FOR TAX AGENCY DEBTS 2006, DISTRIBUTION BY ORIGIN OF THE DEBT
PENDING AT 01/01/2006 AUDIT REPORTS RECOGNITION OF DEBTS
IN THE YEAR
4,076.03 1,605.30
1,473.73 1,097.85
TOTAL CHARGE 5,549.75 2,703.15
TOTAL PENDING AT 31/12/06 MANAGED 1,501.31
4,408.45
1,036.95
1,666.19
OTHER TAX AGENCY SETTLEMENTS
TOTAL
1,734.90
1,319.62
3,054.52
1,025.94
2,028.58
7,416.23
3,891.20
11,307.42
3,564.20
7,743.22
Amounts in millions of Euros.
5.3.2. Debts to Other Bodies The Tax Agency also carries out the enforced collection of tax collection of the resources of other State bodies and Autonomous Organisations in addition to the resources of other Public Administration organisations or Bodies, for which it is responsible by law or agreement.
82
Thus, in 2006 it carried out tax collecting activities for a total of 120 external bodies, including 63 Autonomous Organisations, 16 Autonomous Communities, a Provincial Government, two Local Bodies and 38 Public Bodies. The debts settled by the various ministerial Departments by the enforced collection process should also be added to this.
II.- SUMMARY OF
REPORT
2006
OPERATIONS
5. TAX AND CUSTOMS CONTROL
MANAGEMENT CARRIED OUT IN 2006 RELATED TO DEBTS OF OTHER BODIES. BREAKDOWN BY ISSUING ENTITY
PENDING AT 01/01/2006
2006
TOTAL CHARGE
TOTAL MANAGED
TOTAL MANAGED AT 31/12/06
OFFICIAL BODIES
439.95
431.56
871.51
362.30
509.20
AUTONOMOUS COMMUNITIES
350.11
332.20
682.30
315.73
366.58
38.42
40.38
78.79
39.01
39.78
327.76
327.74
655.50
230.60
424.90
1,156.24 1,131.88
2,288.10
947.64
1,340.46
ENTES ISSUING BODIES
PUBLIC ENTITIES REST
TOTAL ENTITIES Amounts in millions of Euros.
MANAGEMENT OF DEBT OF OTHER ENTITIES 2006. BREAKDOWN BY ISSUING ENTITY
24.33%
28.65%
38.23%
38.09%
4.12% 3.44%
29.82%
TOTAL CHARGE
33.32%
TOTAL MANAGED
OFFICIAL BODIES
PUBLIC BODIES
AUTONOMOUS COMMUNITIES
REST
83
II.-
REPORT
2006
SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
ORIGINS OF THE CHARGES OF OTHER BODIES IN 2006
IN MILLION EUROS
ISSUING BODIES AUTONOMOUS. COMMUNITY. OF ANDALUCÍA
38.16
AUTONOMOUS. COMMUNITY. OF ARAGÓN
18.09
0.79%
AUTONOMOUS. COMMUNITY. OF PRINCIPALITY OF ASTURIAS
1.70
0.07%
AUTONOMOUS. COMMUNITY. OF BALEARIC ISLANDS
9.44
0.41%
1.67%
AUTONOMOUS. COMMUNITY. OF THE CANARY ISLANDS
0.44
0.02%
AUTONOMOUS. COMMUNITY. OF CANTABRIA
4.10
0.18%
AUTONOMOUS. COMMUNITY. OF MANCHA
42.63
1.86%
AUTONOMOUS. COMMUNITY. OF CASTILLA Y LEÓN
46.86
2.05%
293.81
12.84%
5.80
0.25%
AUTONOMOUS. COMMUNITY. OF CATALONIA AUTONOMOUS. COMMUNITY. OF EXTEMADURA AUTONOMOUS. COMMUNITY. OF GALICIA
7.12
0.31%
AUTONOMOUS. COMMUNITY. OF MADRID
109.46
4.78%
AUTONOMOUS. COMMUNITY. OF MURCIA
2.14
0.09%
AUTONOMOUS. COMMUNITY. OF BASQUED COUNTRY
3.81
0.17%
AUTONOMOUS. COMMUNITY. OF LA RIOJA
1.02
0.04%
AUTONOMOUS. COMMUNITY. OF VALENCIA
94.73
4.14%
TRAFFIC DEPARTMENT
536.93
23.47%
HYDROGRAPHIC CONFERENCE OFFICIAL BODIES
203.25
8.88%
42.09
1.84%
1.34
0.06%
22.28
0.97%
EMPLOYMENT SERVICES (INEM). AIRPORT AUTHORITY PORT AUTHORITIES HIGH COUNCIL OF CHAMBERS OF COMMERCE OTHER OFFICIAL BODIES
2.01
0.09%
53.16
2.32%
MINISTERIAL DEPARTMENTS AND OFFICIAL BODIES EXTERNAL TO THE TAX AGENCY747.75
TOTAL
The external bodies with the greatest sum of debts managed by the Tax Agency in 2006 were: the Autonomous Traffic Office Organisation (23.47%) and the group of Hydrographic Confederations (8.88%).
84
PERCENTAGE
2,288.10
32.68%
100.00%
In terms of Autonomous Communities, Catalonia, Madrid and Valencia are notable for having the highest sum of debts managed by the Agency during 2006.
REPORT
2006
II.- SUMMARY OF OPERATIONS
5. TAX AND CUSTOMS CONTROL
5.3.3.Management of Public fees The Tax Agency is responsible for managing the collection of this public income and also for the effective collection of taxes managed by Ministerial Departments and Autonomous Organisations within the relevant period of administration.
In 2006 the net amount collected in taxes managed by the various Ministerial Departments and Autonomous Organisations of the General State Administration are detailed in the following table:
IN THOUSANDS OF EUROS
IN THOUSANDS OF EUROS THROUGH COLLABORATING ENTITIES* THROUGH RESTRICTED ACCOUNTS**
1,003,593.88 585,929.31
THROUGH COMMERCIAL STAMPS
34.43
CONSULAR FEES
21,312.67
REVENUE FROM TAX AGENCY DELEGATIONS
60,032.31
TRANSFER OF REVENUE REFUNDS ISSUED
TOTAL
125,375.31 -3,096.06
1,793,181.85
Amounts in millions of Euros. * Total collected by collaborating Bodies for taxes managed by Ministerial Departments and Autonomous Organisations. ** Total collected through restricted accounts corresponding to Ministerial Departments and Autonomous Organisations.
5.3.4. Other actions related to the control of the collection process Within the framework of mutual assistance between European Union member countries, in 2006, the Tax Agency received 58 notification requests, 164 requests for information, 8 requests for adoption of precautionary measures and 743 requests for collection.
In terms of administration, there was an increase of over 30% in the number of proceedings in which the Tax Agency collected on behalf of other European Union member States, with an increase in the total amount collected of almost double.
85
R E P O R T
2006
III.- Opinion and Participation of Citizens
87
REPORT
III.-
2006
OPINION AND PARTICIPATION OF CITIZENS
1. STUDIES AND OPINION POLLS
C itizens are the recipients of the majority of the services given by the Tax Agency and their opinion of the service provided is a very valuable tool in the decision making process. The perception and opinion held by citizens of the services provided by the Tax Agency are revealed through a range of studies prepared by public bodies not connected to the Tax Agency. 1.1. Public Opinion and Tax Policy (Sociological Research Centre) The study entitled Public Opinion and Tax Policy is carried out on an annual basis by the Ministry of the Presidency through the Sociological Research Centre and contains various questions for citizens related to the Tax Agency. This study is prepared based on a sample of two thousand five hundred interviews carried out nation-wide. The Tax Agency's information and assistance
services have been awarded a very high mark and there is a high level of satisfaction with the treatment and service received from staff in the Tax Agency's offices. In 2006, 84.8% of people surveyed stated that they were satisfied or very satisfied with the treatment and service received in the offices of the Tax Agency and 70.1% stated that the Tax Agency's information and assistance service was, in their opinion, good. The following table shows the evolution since 1997 of the results of surveys on services provided.
DEGREE OF SATISFACTION WITH TREATMENT AND SERVICE IN TAX AGENCY OFFICES
%
1997 1998
1999 2000 2001 2002 2003 2004 2005 2006
Very satisfied / satisfied
79.2
84.2
80.7
83.2
81.2
82.9
85.5
82.8
82.5
84.8
OK
10.2
6.4
8.5
8.6
11.6
9.1
6.9
9.2
8.4
6.7
Not satisfied / very dissatisfied
10.2
9.1
10.4
8.0
7.1
7.8
7.3
8.0
8.6
8.1
0.4
0.4
0.4
0.2
0.1
0.2
0.3
0.0
0.5
0.3
Don’t know / No answer
PUBLIC OPINION ON TREATMENT AND SERVICE RECEIVED
88
%
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Has improved
63.3
62.5
60.1
55.3
52.2
56.3
56.4
51.1
54.8
51.3
The same
23.1
21.7
24.4
29.1
34.7
31.6
33.3
33.7
31.6
37.2
Got worse
2.9
2.5
3.0
2.6
2.4
2.2
1.5
3.3
1.9
2.0
Don’t know
9.5
12.4
12.3
13.0
10.0
9.7
8.4
10.9
10.5
9.2
No answer
1.3
0.8
0.2
13.0
0.6
0.2
0.4
1.00
1.2
0.3
III.-
REPORT
2006
OPINION AND PARTICIPATION OF CITIZENS
1. STUDIES AND OPINION POLLS
WHAT IS YOUR OPINION OF THE INFORMATION AND TAX PAYER ADVICE SERVICE
%
1997 1998
1999
2000
2001
2002
2003
2004
2005
2006
Good
67.6
71.9
71.0
69.6
69.0
71.0
73.0
69.3
69.3
70.1
OK
24.7
20.9
20.8
23.5
24.3
23.1
19.6
24.1
22.8
24.2
Bad
5.1
5.6
6.2
5.3
5.1
4.6
6.1
5.0
6.0
5.0
Don’t know/No comment
2.6
1.6
2.0
1.6
1.6
1.2
1.3
1.6
1.9
0.6
1.2. Public Opinion and Taxation (Institute for Fiscal Studies) Within the Secretary of State for Finance and Budget, the Institute for Fiscal Studies is the organisation that, with the collaboration of the Tax Agency, prepares the annual national study known as the "Tax Barometer". The data show the evolution of opinions up to 2006. The study is carried out on a sample of one thousand five hundred citizens, spread over five segments (business owners, farmers, professionals, salaried workers and the unemployed) and selected by quotas of habitat, sex, age and socio-economic category (studies and income), using the personal interview technique.
Within the "Tax Barometer" the population's degree of knowledge about the services provided by the Tax Agency should be highlighted, reaching 67%, whilst the extent to which its services are used stand at 37%. The evaluation of the services provided is very positive, with 85% of those surveyed giving positive feedback. This study also surveys the opinion of citizens on Tax Agency civil servants, who are considered to be good specialists, impartial in carrying out their duties and courteous. The following table shows the data available since 2000 for services provided by the Tax Agency.
KNOWLEDGE AND USE OF THE TAX AGENCY’S SERVICES
(%)
2000
2001
2002
2003
2004
2005
2006
Knowledge
56
56
56
61
65
65
67
Use
21
28
29
31
35
35
37
89
REPORT
III.-
2006
OPINION AND PARTICIPATION OF CITIZENS
1. STUDIES AND OPINION POLLS
OPINIONS RELATING TO TAX AGENCY SERVICES
2000
2001
2002
2003
2004
2005
2006
Negative (%)
15
9
13
18
16
18
15
Positive (%)
85
91
87
82
84
82
85
Average rating from 1-4
2,9
3,1
3,0
2,9
2,9
3,0
2,9
OPINIONS RELATING TO TAX AGENCY CIVIL SERVANTS
Average rating from 1-7
90
2000
2001
2002
2003
2004
2005
2006
Impartiality
4.5
4.8
4.5
4.7
4.6
4.6
4.7
Technical training
4.7
5.0
4.7
4.9
5.0
5.0
4.9
Appropriate treatment
4.6
4.9
4.6
4.8
4.7
4.7
4.7
Concern about problems
3.9
4.0
4.1
3.7
3.7
3.9
3.7
REPORT
2006
III.-
OPINION AND PARTICIPATION OF CITIZENS
2. SUGGESTIONS
Suggestions Box for the Tax Fraud Prevention Plan The Suggestions Box for the Tax Fraud Prevention Plan was set up in order to facilitate the direct participation of citizens and associations representing them in the process of defining the Agency's strategy in its mission of preventing and correcting tax fraud, In 2004, citizens, tax management professionals, business associations, etc. were able to participate in drawing up the Fraud Prevention Plan, the draft of which was published on the Internet together with a Suggestions Box.
The suggestions received (over 500) and their evaluation by the Tax Agency can be consulted on the website (classified by subject and in chronological order). In addition, once the Fraud Prevention Plan was approved, a permanent Suggestions Box was opened for all citizens to use. During the period February to December 2005, 642 suggestions were received in this Box. In 2006, 732 suggestions were received.
91
R E P O R T
2006
IV.- Appendix of Statistics
93
REPORT
IV.-
2006
APPENDIX OF STATISTICS
COLLECTIONS MANAGED
TAX COLLECTION MANAGED BY THE TAX AGENCY (in thousand million euros) 240 221.41 220 200 183.31 177.68
180
179.38
165.45 160
151.16 143.31
141.80 140
150.79
132.27 121.46
132.33
114.75
120
124.91
103.80 100
114.55
92.30
107.89
86.10
99.97
79.44
92.23
80 60
85.10 68.00
72.90
73.73 41.89
40 20
11.45
13.20
16.07 18.70
22.64
21.37
24.39
1998
1999
2000
27.44
28.32
33.12
34.37 32.52
0 1994
1995
1996
1997 Gross
Data on pages 30 and 41.
94
Net
2001
2002
2003
Refunds
2004
2005
2006
IV.-
REPORT
2006
APPENDIX OF STATISTICS
INFORMATION AND ASSISTANCE
ON-LINE INCOME TAX RETURNS
4,000,000
3,775,468
3,500,000 2,982,894
3,000,000
2,319,764
2,500,000
1,721,538
2,000,000 1,500,000
1,151,313
1,000,000 500,000
497,789 21,559
115,244
1999
2000
0
2001
2002
2003
2004
2005
2006
Data on page 48.
TELEPHONE CALLS ANSWERED ON BASIC TAX INFORMATION
8,000,000 7,217,250 7,000,000 5,750,511 5,488,700 6,000,000 5,003,317 5,000,000 4,040,539 5,433,189 5,476,178 5,039,327 4,000,000 3,197,197 2,852,835 3,000,000 3,211,253 2,000,000 1,875,450 1,000,000 0 892,863 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Data on page 55.
95
REPORT
IV.-
2006
APPENDIX OF STATISTICS
INFORMATION AND ASSISTANCE
ACCESS TO INFORMA
5,000,000 4,727,070 4,500,000 4,000,000 3,427,131 3,285,071 3,500,000 3,027,517 3,301,613 2,686,268 3,000,000 2,615,930 3,169,421 2,984,408 2,500,000 1,856,640 2,630,592 2,000,000 2,068,397 1,500,000 1,000,000 1,558,368 500,000 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Data on page 56.
SENDING OF PERSONAL TAX DATA AND PRE-POPULATED TAX RETURN
16,000,000 15,083,091
15,000,000 14,000,000 13,000,000 12,000,000
11,801,018
11,000,000 10,000,000 9,000,000 8,000,000
7,370,575
7,000,000 6,000,000
5,422,459
5,000,000 4,000,000 3,000,000 1,603,758
2,000,000 1,000,000
2,601,416
1,133,230 335,946
640,900
0 1998 Data on page 56.
96
1999
2000
2001
2002
2003
2004
2005
2006
IV.-
REPORT
2006
APPENDIX OF STATISTICS
INFORMATION AND ASSISTANCE
VISITS TO THE WEBSITE www.agenciatributaria.es
200,000,000
193,876,355
180,000,000 160,000,000
158,707,029
140,000,000 132,248,498
120,000,000 100,000,000 80,000,000
78,488,451
60,000,000 45,408,011
40,000,000 20,000,000
5,777,514 8,108,944 163,048 1,497,222
18,322,044
0 1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Data on page 2.
COOPERATION AGREEMENTS AND PROTOCOLS SIGNED FOR THE ELECTRONIC PRESENTATION OF TAX DECLARATIONS
250 199
200
196 162
150
129
100
63
52
50
68
77
2000
2001
118
24
0 Antes 1998 de 1998
1999
2002
2003
2004
2005
2006
Data on page 21.
97
REPORT
IV.-
2006
APPENDIX OF STATISTICS
INFORMATION AND ASSISTANCE
NUMBER OF PAYMENT POSTPONEMENTS REQUESTED
580,000 558,159
560,000
565,931
540,000 520,000
501,318
503,650
479,277
491,163
480,000
499,246
492,373
500,000
488,243
473,600
475,836
460,000
490,594
453,640
440,000 420,000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Data on page 60.
AMOUNT OF INSTALMENTS REQUESTED (in million euros)
5,000
4,974.97
4,500 4,000 3,500
3,035.59
3,000
3,390.98 2,996,00
2,725.16 2,315.31
2,500
2,222.00
2,572.13
2,000
2,854.95
2,472.00 1,830.50
1,500
3,307.78
1,854.21
1,000 500 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Data on page 60.
98
IV.-
REPORT
2006
APPENDIX OF STATISTICS
TAX AND CUSTOMS CONTROL
NUMBER OF HOMOGENEOUS CONTROL ACTIVITIES SELECTION AND INVESTIGATION 2006
120,000 116,651 100,000 80,000
64,670
60,000
46,402
40,000 16,120
20,000
10,526
0 Domestic Taxes
Tax on foreign trade and Excises
Real Estate Sector
Bands of fraud and false invoices
Customs and Excises Operational
Data on page 30.
HOMOGENEOUS EXTENSIVE CONTROL ACTIVITIES 2006
5,000.000 4,500.000 4,000.000
4,210,445
3,500.000 3,000.000 2,500.000
1,995,416
2,000.000 1,500.000 1,000.000 500.000
147,022
0 Domestic taxes and modules
Large Companies
Customs Management and Excises Management and Intervention
Data on page 30.
99
REPORT
IV.-
2006
APPENDIX OF STATISTICS
TAX AND CUSTOMS CONTROL
DEBT COLLECTION MANAGEMENT 2006 (in millions of euros)
3,500.00 3,000.00
3,189.099
2,936.518 2,418.833
2,500.00 2,000.00 1,500.00 1,000.00 500.00 0.00 Revenue through Enforced Collection Total data on page 30.
100
Voluntary payments
Activities without revenue
IV.-
REPORT
2006
APPENDIX OF STATISTICS
TAX AND CUSTOMS CONTROL
SUPPRESSION OF CONTRABAND: VALUE OF MERCHANDISE (in millions of euros)
5,000 4,328.16
4,500
3,860.58
4,000 3,500 2,581.64
3,000 2,387.00
2,500
2,732.79
3,254.28
2,054.94
2,000 1,500
3,367.48 3,906.77
1,755.56 1,362.91
1,000
1,246.72 948.59
500 0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Data on page 79.
101
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