More than 1.297 sanctions have been imposed by the Tax Agency for breach of the limitation for cash payments under Law 7/2012.This law 7/2012, of 29 October, amending the tax and budgetary policy and financial regulation suitability for stepping up actions in preventing and combating fraud, established in Article 7 a limitation for the use of the means of payment in cash.Although the rule has been in force for three years, we need to make a reminder of it due to the volume of imposed sanctions, on the understanding that it is more than certain that the irregularities committed are far superior to said penalties.So, it must be remembered the regulation in this area in order to avoid possible fraudulent activity even if it is involuntary, pointing to what economic operations it relates:
- The above limitation affects operations from 2.500,00.- €.
- At least one of the parties should be an entrepreneur or professional.
- For cash it must understood paper money and coins, bearer checks and any other physical medium including electronic intended to be used as payment to the carrier.
- The participants in the transactions even not being able to pay cash shall retain proof of payment for five years from the date hereof.
- To determine the amount of the transaction the amounts of the operation should be added although its payment was split, either through different invoices or in installments of one bill.
- The payments and revenues in financial institutions and transactions between individuals in which neither acts as employer or professional are outside this law.
As for the sanctions regime, both the payer and the recipient will respond jointly to the infringement committed, Tax authorities can reclaimed against either of them interchangeably.The amount of the penalty is 25% of the amount paid in cash.In addition, the penalty will be compatible with other penalties that may be applicable for the same performance, such as exit or entry into national territory of amounts equal to or greater than € 10.000,00.- movements within national territory of an amount equal to or greater than 100.000,00.- €.Any of the parties shall be released from liability if within a period of three months from the cash payment proceeds if a complaint is made to the Tax Agency.The limitation period is five years and therefore superior to tax prescription period of four years.