#EmbraceSpain XI: The path towards a new Europe

#EmbraceSpain XI: The path towards a new Europe

#EmbraceSpain XI: The path towards a new Europe

With the parliament’s okay regarding Theresa May’s plans on Brexit and the offensive against Fraud of states and organizations, there will be a definite change in Europe, even in the tax area.

This week the UK has taken a step further towards Brexit, with the British Parliament backing Prime Minister Theresa May’s timing to activate Article 50 of the TEU and start negotiations to leave the EU in March 2017, a decision that will change Europe.

Regarding this issue, our Managing Partner, Leon Fernando del Canto, published an article in the Tax Precision blog about how the exit from the European Union could affect the configuration of the UK tax system.

Meanwhile, in Spain, in celebration of Constitution Day, our partner Isabel Mastrodoménico of the Communication and Gender Agency, published an article in the Huffington Post in which she defended a more equal Constitutional Court, an initiative proposed by the Feminist Network of Constitutional rights.

Another initiative, the application of universal jurisdiction for tax offenses, has been defended by our Managing Partner, Leon Fernando del Canto, in the British magazine Spear’s, where he mentions that although progress is being made, much remains to be done. “We firmly believe that the principles of universal jurisdiction should be adopted internationally to regulate crime and international tax evasion.”

Del Canto adds that “another issue that needs attention is the need to regulate independent media and investigative journalism, since often the most prominent news serves specific interests and are transmitted in a sensationalist manner.”

The fight against international tax fraud, in line with BEPS measures, has hit the world of football. A consortium of European Investigative Collaborations (EIC) uncovered a case of tax evasion by important football players and personalities such as Cristiano Ronaldo, Falcao, Özil and coach José Mourinho while they were in Spain. The Tax Agency has already announced that it will undertake an investigation, in what is already known as Football Leaks.

To make anti-fraud measures effective, the British Treasury will impose a fine of one million pounds for companies that fail to comply with financial penalties, while on the other hand, in Spain the government has raised the minimum bases of contribution to Social Security and now one million self-employed corporate workers will have to pay an extra 300 euros annually.

In the UK, there has been one of the largest transactions in recent years in the real estate market: the company Invesco Real Estate and the bank Aareal Bank AG have signed a credit line for ten billion pounds of lending, while the rental market continues to rise.

However, some experts warn that the fall in house prices in London will not be solved just by constructing more buildings, but they believe that, among other measures, the reintegration of empty houses in the market is crucial.

International taxation is changing. Brexit will reconfigure European economic and political relations for the coming decades, while new measures against fraud by states and international organizations will change the very conception of tax legislation.

Changes that we bet on at Del Canto Chambers: a new future which we will share from our blog and from our profiles on Twitter and Linkedin social networks.

Xavier Nova (@xavinova)

Director of Del Canto Chambers

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