ANDALUCÍA (Agencies/Image: www.actualidadeconomica.com) Known as pymes (pequeña y mediana empresa, small and medium businesses), they, and the self-employed workers (autónomos) of Andalucía take on €94.6 million annually when they pay the tax authorities for VAT (IVA in Spanish) charges they have not yet been paid for by their clients, according to the Treasury employees organization Gestha. Andalucía is third in line among the Autonomous Regions of Spain, behind Cataluña (€195.2 million) and Madrid €149.3million). The figures for the provinces of Andalucía are as follows: Sevilla, 25.8 million; Córdoba, 21 million; Málaga, 10 million; Almería, 9.4; Granada, 8.6, Jaén, 7.7 and Huelva, 3.7 million. Present legislation>says that IVA (Impuesto de Valor Añadido) is payable at the moment goods or services are delivered, not when a bill is issued or they are paid for.>This evidently puts the small businesses out of pocket until payment is made to them; many larger enterprises and most government agencies take a minimum of 90 days to pay a bill, often a lot longer.
At present, there are only two ways of dealing with IVA debt to the Treasury. One is applying for a delay in payment that carries an annual surcharge of 5%; and two, when an outstanding bill remains so for a year, applying for an exemption that is extremely demanding about documentation and proof.
Last July, the Council of Europe approved a directive that allows the state to authorize IVA tax payments when the goods or services have been paid for. Gestha is of the opinion that this measure should be applied immediately.
Thus, the organization agrees with several legislative ammendments to the so-called Sustainable Economy Law that is now being debated in the Senate. Aside from the IVA issue, Gestha's aim, they say, is to reduce unfair competition among larger companies in arrears of this and other tax payments, against the smaller business and self-employed who are up to date with them.
According to the latest figures from the Instituto de Estudios Fiscales, three of every four Spaniards perceive an increase in tax fraud, and up to 43% agree that it is the larger companies that get away with it. According to the tax workers, there are four measures madenecessary to combat fraud.
The first two is to quantify the 'submerged economy' via studies carried out in the field, divided by territories, industrial and business sectors, and the differences in the tax burden between them. The third suggestion is the need for better coordination among territorial administrations, which would mean the creation of shared tax data bases, as well as developing international cooperation among agencies to control and identify the real title holders behind movements of capital.
The fourth measure, according to Gestha, is the creation of what they call a Cuerpo Superior Técnico de Hacienda (CSTH, meaning a superior technical body within the Treasury) that supposes the authorization of 8,000 employees to carry out 'superior' functions, which would allow for considerably increased control in terms of taxation, customs and public expenditure.
At present, there are only two ways of dealing with IVA debt to the Treasury. One is applying for a delay in payment that carries an annual surcharge of 5%; and two, when an outstanding bill remains so for a year, applying for an exemption that is extremely demanding about documentation and proof.
Last July, the Council of Europe approved a directive that allows the state to authorize IVA tax payments when the goods or services have been paid for. Gestha is of the opinion that this measure should be applied immediately.
Thus, the organization agrees with several legislative ammendments to the so-called Sustainable Economy Law that is now being debated in the Senate. Aside from the IVA issue, Gestha's aim, they say, is to reduce unfair competition among larger companies in arrears of this and other tax payments, against the smaller business and self-employed who are up to date with them.
According to the latest figures from the Instituto de Estudios Fiscales, three of every four Spaniards perceive an increase in tax fraud, and up to 43% agree that it is the larger companies that get away with it. According to the tax workers, there are four measures madenecessary to combat fraud.
The first two is to quantify the 'submerged economy' via studies carried out in the field, divided by territories, industrial and business sectors, and the differences in the tax burden between them. The third suggestion is the need for better coordination among territorial administrations, which would mean the creation of shared tax data bases, as well as developing international cooperation among agencies to control and identify the real title holders behind movements of capital.
The fourth measure, according to Gestha, is the creation of what they call a Cuerpo Superior Técnico de Hacienda (CSTH, meaning a superior technical body within the Treasury) that supposes the authorization of 8,000 employees to carry out 'superior' functions, which would allow for considerably increased control in terms of taxation, customs and public expenditure.
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