Financial and tax compliance
As we already know, Compliance is presented as a fundamental tool so that any company mitigates or eliminates all possible risks under strict control and in any matter that may affect it, within its legal framework in which it is encompassed by the development of its economic activity. However, on this occasion we are going to analyze financial and tax Compliance from a regulatory aspect.
As has been discussed in our Blog previously about the figure of Tax Compliance, he Tax compliance we can define it as that series of measures and policies carried out within the organization in order to control risks that may occur in relation to tax matters and in a purely administrative area since, if the quantitative limit established in the Penal Code is exceeded, we would find ourselves in the area of Criminal Compliance.
Main features
Thus, the most characteristic regulations to take into account in relation to Tax Compliance are:
- Article 31 Spanish Constitution (EC).
- Law 58/2003, of December 17, General Tax (LGT).
- General regulation of the tax penalty regime, approved by Royal Decree 2063/2004, of October 15.
- General Collection Regulation approved by Royal Decree 939/2005, of July 29.
- General Regulations for the development of the General Tax Law regarding Administrative Review approved by RD 520/2005, of May 13.
- General Regulation of actions and procedures for tax management and inspection and for the development of common standards for tax application procedures approved by Royal Decree 1065/2007, of July 27.
In a purely fiscal area (remember, a tax is part of the taxes along with rates and special contributions), we could highlight the following regulations that will regulate and develop through the Regulation the elements of each tax:
Corporate Tax (IS):
- Law 27/2014, of November 27, on Corporate Tax.
- Royal Decree 634/2015, of July 10, which approves the Corporate Tax Regulation.
Value Added Tax (VAT):
- Law 37/1992, of December 28, on Value Added Tax.
- Royal Decree 1624/1992, of December 29, which approves the Value Added Tax Regulation (…).
Personal Income Tax (IRPF):
- Law 35/2006, of November 28, on Personal Income Tax (…).
- Royal Decree 439/2007, of March 30, which approves the Personal Income Tax Regulations (…).
We must take into account many other regulations in the field of Tax Compliance and depending on the tax to be treated: ITPAJD, Capital Gains (IIVTNU), Special taxes (alcohol, fuel, tobacco, plastic, etc.), non-income tax. residents, IBI, ISD, etc.
For his part, the Financial compliance We can define it as that part of Compliance that is dedicated to the control and monitoring of financial risks through the implementation of policies, measures, guidelines or other laws.
Financial compliance
In the business field, Financial Compliance is aimed at compliance with economic regulations and financial that could affect the company in the area of its business development, such as, for example, money laundering, corruption, tax avoidance, competition, etc., therefore sharing matters with other areas of Compliance and being closely linked to tax compliance.
Thus, in a strictly financial sector, we can highlight the following regulations:
- European Directive on Markets in Financial Instruments or MiFID Regulations. This standard aims to promote transparency and investor protection.
- Regulation 596/2014 (MAR). Directive 2014/57 EU. This standard regulates privileged information at European level and in relation to financial operations.
- Directive 2014/57 EU. This rule develops the sanctions that could be carried out.
Therefore, in the development of financial and tax Compliance it is important to have experts in these matters, either en casa or in an outsourced manner, so that the company has controlled its risks in a matter that is increasingly demanding at a regulatory level.
Don't miss all the latest news on Data Protection & Regulatory Compliance from the best professionals in the sector in our Professional Master in Compliance & Data Protection Management
