As from the 2016 financial year, Spanish companies with related party transactions are obliged to file form 232. In addition, this model is also designed to declare intangible asset transactions that benefit from the patent box regime and transactions in tax havens.
This form, which must be presented annually, is key for Tax Authorities as a tool for tax control. Not only the taxpayer can be fined for its non-presentation or possible errors, but any inconsistency in the information included (for example, in relation to the method of valuation, type of operation or type of relationship) can easily be used by the tax authorities to initiate an inspection.
Let’s remember that the Tax Agency, as announced in its 2020 Tax Action Plan, was going to focus all its efforts on the control of related-party transactions and to this end it has equipped itself with the most advanced technology (big data tools) and an “elite corps” specialized in the control and fight against fraud in related-party transactions, to efficiently manage the large amount of data it collects from sources such as forms 232, “Country by Country” models, automatic information exchanges, etc.