Can anyone tell me where I can find the official conversion figure for £'s -> €'s to use for the MOD720 this year?
I'm so sorry, I've only just seen this. Have you found it? It's published in the BOE.
Edit: It's HERE (https://boe.es/boe/dias/2022/01/04/pdfs/BOE-A-2022-225.pdf). For tax purposes you use the exchange rate on 31st December each year, which is published in the BOE of the following working day with the title "Mercado de Divisas".
Quote from: Nova on Fri 21 Jan 2022, 20:44
I'm so sorry, I've only just seen this. Have you found it? It's published in the BOE.
Edit: It's HERE (https://boe.es/boe/dias/2022/01/04/pdfs/BOE-A-2022-225.pdf). For tax purposes you use the exchange rate on 31st December each year, which is published in the BOE of the following working day with the title "Mercado de Divisas".
Thank you, I'll check it out in the morning.
Thank you, looks like it's 0.084028 for the £
Just what I needed :hug:
Quote from: NAH on Sat 22 Jan 2022, 10:12
Thank you, looks like it's 0.084028 for the £
Just what I needed :hug:
If you get stuck, ask this fella :giggle:
Quote from: TOTO 99 on Sat 22 Jan 2022, 10:47
If you get stuck, ask this fella :giggle:
He fiddled his tax return, they're not due yet, only the MOD720 before end of March :D
Quote from: NAH on Sat 22 Jan 2022, 11:32
He fiddled his tax return, they're not due yet, only the MOD720 before end of March :D
I think you'll find he was acquitted.... Unlike Lester Piggott :giggle:
Quote from: Nova on Fri 21 Jan 2022, 20:44
I'm so sorry, I've only just seen this. Have you found it? It's published in the BOE.
Edit: It's HERE (https://boe.es/boe/dias/2022/01/04/pdfs/BOE-A-2022-225.pdf). For tax purposes you use the exchange rate on 31st December each year, which is published in the BOE of the following working day with the title "Mercado de Divisas".
Since the MOD720 is a declaration of assets outside Spain I assume you use the inverse of the figure quoted in the BOE, otherwise the exchange rate wouldn't make sense So I'd use 1 / 0.84028 = 1.190079497 (unless it's rounded of course)
So for every £ outside of Spain (over the threshold) I need to declare €1.19 on the MOD720
We have engaged an accountant to do the first year's submission for us but I also want to be certain that they submit it correctly, since no doubt it would be my fine and not theirs.
I haven't checked the maths but yes, that sounds right. I'm not sure what you mean by "over the threshold"? You only need to do a declaration if your wealth outside Spain is over the threshold but you declare the actual value. When i did mine the threshold for declaration was €50,000. The value (purchase price) of my house in the UK was £60,000. So my 720 declared my foreign assets at the then euro equivalent of £60,000. Not the difference between the two.
Quote from: Nova on Sat 22 Jan 2022, 14:52
I haven't checked the maths but yes, that sounds right. I'm not sure what you mean by "over the threshold"? You only need to do a declaration if your wealth outside Spain is over the threshold but you declare the actual value. When i did mine the threshold for declaration was €50,000. The value (purchase price) of my house in the UK was £60,000. So my 720 declared my foreign assets at the then euro equivalent of £60,000. Not the difference between the two.
Yes I meant the €50,000 declaration threshold. I appreciate that it is the total value which needs to be on the MOD720 and also declared as 'sole' or 'jointly' owned (percentage)
With regards to our apartment block in the UK. It is run by a management company, all owners of apartments are immediately made members of the management company and the management company is run by four directors. Each director having to be an owner obviously.
I am one of the directors, which until moving to Tenerife was perfectly fine. One guy does all of the financial stuff (paying bills from the management company's bank account, preparation of annual budget, liaising with the accountant who audits our accounts and preparing the financial reports for the AGM etc)
I've just been asked if I would be willing to take control of these financial aspects, which in itself, physically, isn't an issue for me.
My concern is how would this affect my MOD 720 declaration (next year) if I took control of this as I would then be a single signatory for a large sum of money (all be it not my money) but I believe this would need to be declared? Maybe one for our accountant?
Check with your accountant to be sure but I can't imagine why you would have to declare it if you don't have any ownership of the money.
Though is it practical your being a signatory if you're not physically there to sign?
Quote from: NAH on Tue 25 Jan 2022, 17:13
With regards to our apartment block in the UK. It is run by a management company, all owners of apartments are immediately made members of the management company and the management company is run by four directors. Each director having to be an owner obviously.
I am one of the directors, which until moving to Tenerife was perfectly fine. One guy does all of the financial stuff (paying bills from the management company's bank account, preparation of annual budget, liaising with the accountant who audits our accounts and preparing the financial reports for the AGM etc)
I've just been asked if I would be willing to take control of these financial aspects, which in itself, physically, isn't an issue for me.
My concern is how would this affect my MOD 720 declaration (next year) if I took control of this as I would then be a single signatory for a large sum of money (all be it not my money) but I believe this would need to be declared? Maybe one for our accountant?
I am also in the same position here in the UK. There's no renumeration no matter how much work goes into it. I've done it for 20 years and it's never been mentioned by the accountants who deal with my business.
I can't see any reason for you to mention it as you don't have any financial gain. I don't see it as being any different to being the treasurer of the local boy scout group.
In the unlikely event that you come under any kind of scrutiny, you can easily prove your position.
Quote from: TOTO 99 on Wed 26 Jan 2022, 07:28
I am also in the same position here in the UK. There's no renumeration no matter how much work goes into it. I've done it for 20 years and it's never been mentioned by the accountants who deal with my business.
I can't see any reason for you to mention it as you don't have any financial gain. I don't see it as being any different to being the treasurer of the local boy scout group.
In the unlikely event that you come under any kind of scrutiny, you can easily prove your position.
renumeration ?
Quote from: Malteser Monkey on Wed 26 Jan 2022, 08:55
renumeration ?
Lol....well spotted. I was trying to price a job at the same time as typing that.. :giggle: :giggle:
Just move the M and the N around and no one will know... :tiphat:
Quote from: TOTO 99 on Wed 26 Jan 2022, 07:28
I am also in the same position here in the UK. There's no renumeration no matter how much work goes into it. I've done it for 20 years and it's never been mentioned by the accountants who deal with my business.
I can't see any reason for you to mention it as you don't have any financial gain. I don't see it as being any different to being the treasurer of the local boy scout group.
In the unlikely event that you come under any kind of scrutiny, you can easily prove your position.
Thanks @TOTO 99 (https://chalkcat.com/index.php?action=profile;u=121) I know it's not an issue in the UK, it's just the Spanish MOD720 declaration that I am a little worried about. Like you say there is no 'salary' or financial gain from it but since my name would be on the bank account of the management company I thought it may have to be declared on the MOD720.
I believe if you become an executor of a will and therefore have control over another sum of money / house you need to declare that on the MOD720.
Maybe I'm just being over cautious but I need to be sure before agreeing to do the thankless task and know whether to declare it before I get slammed with a huge fine for not declaring something on my MOD720.
Quote from: Nova on Tue 25 Jan 2022, 23:53
Check with your accountant to be sure but I can't imagine why you would have to declare it if you don't have any ownership of the money.
Though is it practical your being a signatory if you're not physically there to sign?
Thanks @Nova (https://chalkcat.com/index.php?action=profile;u=1) I was wondering that as well but with everything being done online these days. Online banking to pay the bills, nothing actually needs 'signing' in person and any documents can be emailed, signed, scanned and emailed back again.
It does concern me that should anything out of the ordinary crop up I wouldn't be able to attend in person and would need to rely on one of the other directors sending me a photo or something similar.
Apologies @NAH (https://chalkcat.com/index.php?action=profile;u=18) , I don't wish to derail your original thread but do any of your fellow directors live on site?
I'm just wondering are you not tempted to give the job to someone else? Or will nobody do it?
Quote from: TOTO 99 on Wed 26 Jan 2022, 10:27
Apologies @NAH (https://chalkcat.com/index.php?action=profile;u=18) , I don't wish to derail your original thread but do any of your fellow directors live on site?
I'm just wondering are you not tempted to give the job to someone else? Or will nobody do it?
It's all MOD720 related so no worries :)
One of the other directors lives on site but honestly he struggles to use email so the thought of him attempting to pay bills using online banking and produce financial reports using Excel terrifies me.
Quote from: NAH on Wed 26 Jan 2022, 11:08
It's all MOD720 related so no worries :)
One of the other directors lives on site but honestly he struggles to use email so the thought of him attempting to pay bills using online banking and produce financial reports using Excel terrifies me.
That's fair enough. I'm one of 3 directors and I'm the only one on site. The other two trust me to make the right decisions and I always involve them if there's anything expensive happening. Like the £3k I've just had to sanction for cutting back some trees. They asked me does it really need doing and I said yes. They are happy to take my word for it.
Being a real life contractor myself means I know what to look out for. They appreciate that.
It needs trust when remote directors are involved. I think you will have to be happy that they are on site and trust them to make decisions. You stick to the finance side. It's all too easy to get dragged into doing more than is really necessary, as I'm sure you're fully aware. I know I am... :giggle:
@TOTO 99 (https://chalkcat.com/index.php?action=profile;u=121) I'm fully aware of how much you end up doing free of charge when you're a director.
We also have around an acre of woodland as well as numerous other individual trees around the site. Quite a few of the trees have TPOs on them as well, so I'm fully aware how much a tree surgeon costs.
I am one of four directors, two currently live on site but one of those has his apartment on the market so once sold will no longer fulfil the criteria to be a director, which will leave only one living on site. Don't get me wrong, I'm not ageist, but he's 79 this year and not in very good health.
In its recent judgment of 27 January 2022, Case C-788/19, The Court of Justice of the European Union (CJEU) rules on the infringement action brought by the European Commission on 23 October 2019.
The CJEU has overturned the Tax Agency's Form 720, which obliges taxpayers to declare assets abroad, on the grounds that it is contrary to EU law, that the conditions and penalties set out in the regulation are "disproportionate", and that Spain has failed to comply with its obligations under the free movement of capital as they may discourage the acquisition of goods abroad.
Taxpayers will be able to recover the amount of the penalties for this tax model now rejected by the European Court of Justice. The Treasury will have to return the penalties even if they are firm and uncontested, by means of the State's patrimonial responsibility.
Spain must now comply as quickly as possible with the CJEU ruling, which is binding. If it fails to do so, the European Commission can go back to court and ask for financial penalties to be imposed.
The Ministry of Finance has commented that it will reform the system to bring it into line with European standards before the end of March.
Source (https://www.pellicerheredia.com/en/model-720-declaration-assets-ownership-overseas/)
March, didn't say which year ;). But just think of all that lovely information they have gathered so far. I bet that is tucked away in some hidden file. :03:
For those that need to submit a MOD720 this year, remember that you've only got three days left to complete the submission. Must be done by the end of March.
@Nova (https://chalkcat.com/index.php?action=profile;u=1) I hope you've done yours already, as I remember you have to do one this year.
All fines related to MOD720 cancelled by the Hacienda:
:link: (https://www.healthplanspain.com/blog/spain-news/1881-spains-tax-authorities-abolish-fines-for-form-720.html)