Friday, April 13, 2012
Game On! - Spain bans Cash Transactions
A worrying addition to this blog's Game On! series following on from Italy & Belgium, Spain has now banned cash transactions over 2,500 Euros.
From Libre Mercado:
Translated by Google:
The fine for payments above € 2,500 will affect payer and receiver
The measure will take effect immediately, but will be accompanied by others which will be operational in 2013.
LM / AGENCIES 12/04/2012
Secretary of State for Finance, Michael Ferre, stated on Thursday that both the payer and the recipient of cash payments in excess of 2,500 euros will be sanctioned by the measure including the Government's draft bill to be approved tomorrow the Council of Ministers.
During a luncheon organized by the Association of Financial Journalists (APIE), Ferre has not specified whether the fine, initially set at 25% of the cash payment made will be split between payer and receiver or if everyone has to bear the 25% of that amount. "Tomorrow I know," said Ferre, who explained that the Treasury set the limit at 2,500 euros because it believes that this figure mark certain operations "entity" should not be paid with "a wad of cash." Also explained that we have studied a range that began with the limit set by Italy (1,000 euros) and ended in the French (3,000 euros). "For us it is more reasonable 2,500 Euros," he asserted.
Other crimes: he explained that the fine does not relieve 25% of other crimes that can be detected as false invoices or undeclared income, among other things. "It's a mechanism, an additional sanction," he underlined. The measure, included in the draft law approved by the Government tomorrow, will take effect "immediately", but must be accompanied by others which will be operational in 2013 because it is better to match the beginning of a calendar year to be "more digestible".
More transparency: as Ferre, bring greater transparency to economic activity and will reduce the amount of tax fraud, while improving the collection as have other specific plans such as the investigation of 500 euro, which turned out to be "pretty" and required step "more aggressive".
Foreign assets: another of the measures included in the draft will be required to declare foreign assets has announced this morning the Minister of Finance and Public Administration, Cristobal Montoro, and is done through a policy statement that will a punishable for possible breaches.
In fact, the bill will contain, as Ferre, measures "very powerful" to convey the message that the tax amnesty is a process approved "truly extraordinary and exceptional" and that those not qualifying for the voluntary adjustment will have to bear the consequences from 2013.
About the amnesty, Ferre has said the government expects to collect about 2,500 million euros, drawn from different sources, although their contribution in income will be noticed only a year, so that by 2013 will have to consider ways to compensate for the disappearance of amnesty, as recorded by Europa Press.
Secretary of State reminded once again that is an exceptional measure that has been done in Spain and other countries and the OECD itself is generally recommended to be implemented from time to time to put the "zero marker" and generate funds for administrations. As to the 10% that makes the amnesty, Ferre explained that the Government has set at 5% in Italy and 20% in Germany, who has been "very successful" in attracting capital and has decided to stay in 10%.