The world economy continues to tackle the severe crisis caused by Covid-19. The pandemic has plummeted the Spanish economy harder than the rest of its European partners. The recovery of activity in the weeks following the end of the confinement has not shown the expected drive during the summer. Against this backdrop, Equipo Económico (Ee) has revised its GDP forecast for this year two points downwards, when the drop in GDP will reach -12.0%. The degree of success and effectiveness of economic policy will very much determine the strength of the recovery.
Analisis of the TEAC resolution of July 17, 2020, where it is once again initiated the debate on the deductibility of the remuneration of executive administrators, and its correlation with the “Relationship Principle” or “Teoría del Vínculo” in the mercantile sphere. This is an issue that had already been clarified with the new tax law and the binding doctrine of the DGT.
In the always tumultuous fiscal scene, the summer has brought three important administrative and judicial resolutions with contrary to taxpayers interests, perhaps representative of a future trend in need of reconsideration. Meanwhile, there are still unknowns about possible immediate changes in tax regulations, including taxation of assets.
After the sharp deterioration that the sector has suffered during the months of the state of alarm, with air transport in Spain registering a decrease of over 80%, flights and passenger traffic have been reactivated from the beginning of June, although reaching levels still much lower than in 2019.
The months of June and July are usually used by drivers to prepare their vehicles for summer journeys. July is the Corporate Tax´s month, as the vast majority of companies file their returns in this month. This month of July has seen a major ruling by the Constitutional Court, which may have more consequences than those initially derived from the declaration of unconstitutionality it contains. For all these reasons, and in the same way that we are paying attention to our car, I believe that the time has come to stop and carry out a small review of the state of our Corporation Tax. Let's take step by step.