Investigators urged to scrutinize the monarch's external income for the purpose of settling his debts
The Spanish union of tax technicians, Gestha, has raised concerns about the tax residency status of Juan Carlos I, the emeritus king of Spain. The union has requested an investigation into the king's economic activities and interests, particularly his main center of economic interests since 2022.
The investigation aims to determine if Juan Carlos I obtained funds personally or through a Spanish or foreign instrumental entity or company. It also seeks to establish the origin and location of these funds in his accounts. The potential uncovering of crimes against public finance is a possibility if the king's tax regularization is found to be incorrect.
Juan Carlos I has repaid loans totaling 4,416,757.46 euros for his complementary IRPF declarations from 2014 to 2018. However, Gestha questions whether the king was a resident in Spain during the time he received these loans, suggesting he could potentially be a fiscal stateless person—someone who might not be properly paying taxes in either Spain or the United Arab Emirates (UAE), where he currently resides.
The union suggests that if King Juan Carlos I does not pay taxes in either Spain or the UAE, he could be considered a fiscal stateless person. To avoid this, Gestha has asked for the activation of the procedure for tax residence in Spain. If Juan Carlos I's main economic interests are found to be in Spain, he would still be considered a tax resident in Spain despite living in the UAE.
The union of tax technicians at Hacienda, Gestha, is asking the Tax Agency to inspect Juan Carlos I's properties, shares, or accounts abroad and their valuation. The inspection, aimed at investigating Juan Carlos I's economic activities and interests, is scheduled before June 30th.
The investigation also includes verifying the place and nature of the income supposedly obtained by Juan Carlos I. The royal house's norms limit the activities of its members to institutional matters, excluding mediation in commercial operations. However, the union recalls that Juan Carlos I's activities in the sale of rights for documentaries about his life and mediation in commercial operations could potentially impact his tax residency status.
In conclusion, the investigation into Juan Carlos I's tax affairs is crucial to clarify his tax residency status and ensure the completeness of his tax declarations and payments. The potential consequences of a false, incomplete, or incorrect tax regularization could lead to penal consequences. The union's requests underscore the importance of transparency and accountability in the financial dealings of public figures.
- The investigation into Juan Carlos I's tax affairs is significant to determine the average tax contributions he should have made as a resident, whether in Spain or the UAE, considering his financial activities in the banking and insurance sector, personal-finance management, and business interests.
- The Spanish union of tax technicians, Gestha, is pushing for a thorough examination of Juan Carlos I's financial dealings in the industry, extending to any properties, shares, or accounts held abroad, assessing their value and potential role in his economic activities and interests.
- In the context of Juan Carlos I's tax status, it is essential to establish the industry-standard practices for tax residency, ensuring that the emeritus king of Spain complies with the relevant rules, particularly regarding his involvement in commercial operations outside of the royal house's institutional matters.
