Despite cash payments lost their popularity andIn favor of credit cards and digital payment solutions such as “Bizum”, there are still those who prefer to use cash to transact. But, The Treasury does not overlook these currency movements, as there is a close relationship between the use of cash and tax evasion. The State Tax Administration Agency is responsible for administering, inspecting and collecting State taxes as part of its duties.
Despite The Treasury does not monitor each cash transaction individually to prevent tax evasion, it has mechanisms to detect possible irregularities.. For example, banks are obliged to notify the Treasury of their customers’ transactions exceeding the determined limits. These limits 3,000 Euros for cash transactions (both deposit and withdrawal) as well as the collection of documents such as checks, bills of exchange or promissory notes. Moreover, Identify all persons involved in transactions over 1,000 euros. These suspicious movements are logged in a database to detect patterns that could indicate potential violations.
Another way to detect fraud in cash payments is by filing a complaint with the Tax Office. It can be done in the ” section using a form available on your electronic platform.Notification of cash payments“. Moreover It is possible to make the complaint to the relevant offices in person.provide the necessary documents.
Cash payment limits set by the Treasury
Law No. 11/2021 of 9 July on measures to prevent and combat tax evasion regulates the limitation of cash payments in economic activities. According to article 18 of this law:
“In transactions where one of the parties is a businessman or professional, cash payments cannot be made in cases where the amount is 1,000 Euros or more. or in foreign currency.
But, This limit rises to 10,000 Euros or its foreign currency equivalent if the taxpayer is a natural person who justifies not having a residence in Spain. and do not act as a businessman or professional.
In short, if any of the parties involved in an operation is a businessman or professional, the maximum cashout limit is 1,000 Euros. If the payer does not have a Spanish tax domicile and can justify this, this limit is extended to 10,000 Euros.
Failure to comply with these rules constitutes a serious administrative offense and both the payer and the recipient will be responsible for this.. Fines exceeding these limits will be applied over the amount paid and 25% of this amount will be applied, with a minimum of 250 Euros. However, if certain conditions are met, the amount of the penalty can be reduced by 50%.
Adhering to these limits is important to avoid economic sanctions and problems with the Treasury. Control of cash payments is a measure adopted to prevent tax evasion and promote greater transparency in economic transactions.
Source: Informacion
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