Dawn

Dawn

Sunday, June 09, 2019

Thoughts from Galicia, Spain: 9.6.19

Spanish life is not always likeable but it is compellingly loveable. 
                  Christopher Howse: A Pilgrim in Spain
Spain
  • The Spanish government is unhappy with the UN's view of the current trial of Catalan 'coup plotters'.
  • Should I really be amused that, in an attempt to do things by the deadline and keep EU subsidies, the folk constructing the AVE high-speed train to Galicia are concentrating on only one side of the track. This, after all, is the defining characteristic of the current (19th century?) line - only one track. Meaning trains have to stop from time to time to let one pass in the other direction.
  • In Galicia at least, the Age of Big Data and AI means that the highest marks in the university entrance exams are now being demanded for maths courses, with 100% employability guaranteed. Medical and related subjects continue to demand very high marks and - in total contradistinction to the Anglo world - law degrees continue to demand only low marks. Suffice to say that most of Spain's politicians are lawyers . . .
  • To get very serious  . . . Way back in late 2012, Spain almost surreptitiously introduced a new tax law relating to the reporting of overseas assets held by residents here, both Spanish and foreign. In itself, there was nothing wrong with this law ('Modelo 720') but the penalties both for non-compliance and even the tiniest of errors were/are beyond humungus. It's hard now to avoid concluding it was a try-on by a tax authority which can be as unprincipled as some of its targets. Inevitably, claims of illegality were made against the level of the fines and these were upheld in early 2017, when the EU gave Spain a couple of months to respond to its prima facie verdict of illegality. But Spain didn't bother to reply and now - a mere 2 years later and almost 7 years after the introduction of the law - the EU says it'll be taking Spain to court. At this rate, the forecast 2 years ago of 10 years before resolution begin to look optimistic. Meanwhile, the uncertainty and arbitrariness of decisions continue and those of us who've been hit with 'illegal' fines for lateness continue to wonder if we'll ever get even some of our money back. Personally, I rather doubt it. One of the downsides of living in Spain. Which, incidentally, many thousands of Brits are reported to have ceased to do in the years after the promulgation and (confusingly arbitrary) implementation of this law. But tax advisers, gestores and asesores are not unhappy with this situation, of course. For them it's a gift from heaven. Especially when what you end up paying for advice which runs:- "On the one hand . . .  On the other, . . . ". Anyway, see the EU's press statement on this below. It'll be interesting - and informative - to see what the Spanish government does next. Especially as Portugal is now offering huge financial incentives to foreign pensioners who move there. Some of us live very close to Portugal and much enjoy visiting it.  I don't suppose any of us is holding their breath.
UK Politics
  • In what might amount to the death throes of the party, contenders for leadership of the Conservative party are competing to see who can come up with the most stupid and unrealistic plan for Brexit. One wonders what the EU technocrats are making of this. Is it any wonder that they don't t trust - and never have trusted - 'democracy'?
The USA 
  • Fart has told the execrable Fox News that he had “automatic chemistry” with Queen Elizabeth. As if that wasn't beyond belief, he went on to add: There are those that say they have never seen the Queen have a better time, a more animated time. Clearly, self-delusion is just one of the things to which there is no limit.
  • English columnist Hugo Rifkind has got hold of Fart's diary of the days he was in Europe last week. You can read it below. 
Finally . . .
  • Well, another scrape with death yesterday, when a driver hurtled from the right as I was halfway round a roundabout, forcing both off us to screech to an emergency stop. She made the standard Spanish apology of palms joined as if in a prayer of supplication, but I wasn't mollified. If this blog ever suddenly ends, you'll know why. Especially if I continue to use zebra crossings in my barrio . . .
  • Still on driving . . . El Tráfico is considering ways to stop (normally geriatric) drivers going down motorways in the wrong direction. Sometimes fatally. Galicia seems to have a disproportionate number of these.
  • Finally on driving . . . I'm in the final stages of developing a new game, called BOSAR. Betting on signals at roundabouts. 
THE ARTICLES

1. The EU on Modelo 720

Commission refers SPAIN to the Court for imposing disproportionate sanctions for failures to report assets held abroad

The Commission decided today to refer Spain to the Court of Justice of the EU for imposing disproportionate penalties on Spanish taxpayers for the failure to report assets held in other EU and EEA States (“Modelo 720”).

Currently, Spain requires resident taxpayers to submit information on the assets they hold abroad. This includes properties, bank accounts and financial assets.

The failure to submit this information on time and in full is subject to sanctions that are higher than those for similar infringements in a purely domestic situation, and which may even exceed the value of assets held abroad. The Commission considers that such sanctions for incorrect or belated compliance with this legitimate information obligation are disproportionate and discriminatory. They may deter businesses and private individuals from investing or moving across borders in the Single Market.

Such provisions are consequently in conflict with the fundamental freedoms in the EU, such as the free movement of persons, the free movement of workers, the freedom of establishment, the freedom to provide services and the free movement of capital.

For more information, please refer to the this press release.

Taxation: Commission refers Spain to the Court for imposing disproportionate sanctions for failure to report assets held abroad: Brussels, 6 June 2019

The Commission decided today to refer SPAIN to the Court of Justice of the EU for imposing disproportionate penalties on Spanish taxpayers for the failure to report assets held in other EU and EEA States ("Modelo 720").

Currently, Spain requires resident taxpayers to submit information on the assets they hold abroad. This includes properties, bank accounts and financial assets. The failure to submit this information on time and in full is subject to sanctions that are higher than those for similar infringements in a purely domestic situation, and which may even exceed the value of assets held abroad.

The Commission considers that such sanctions for incorrect or belated compliance with this legitimate information obligation are disproportionate and discriminatory. They may deter businesses and private individuals from investing or moving across borders in the Single Market.

Such provisions are consequently in conflict with the fundamental freedoms in the EU, such as the free movement of persons, the free movement of workers, the freedom of establishment, the freedom to provide services and the free movement of capital.

Background

The European Commission opened the EU infringement proceedings in November 2015 with a letter of formal notice, followed by a reasoned opinion on 15 February 2017. Since Spain has not yet complied, the Commission decided today to bring the matter before the Court of Justice of the EU.

2. My Week: Donald Trump [according to Hugo Rifkind]

Monday
We’re about to land, and it’s an honour for me to be arriving in Britain and it feels very special and highly presidential and by the way, Sadiq Khan, the Muslim, is such a nasty stone cold loser. And I didn’t say Meghan was nasty, so nasty she’d say that, real trash.

Actually, I have such respect for your royals, including Prince Charles, because I was very close with his wife, who was so beautiful and who I came on to like a train and I’m not saying anything necessarily would have happened there but honestly what a tragedy that was and . . . oh hang on, we’re on the ground.

Out on the tarmac there’s this little bald guy who I reckon is Prince Edward.
“No,” he says. “I’m the US ambassador. We’ve known each other 50 years?”
“Sure!” I say. “And I respect you, and your service is highly valued and also I don’t have a tissue so I need to blow my nose on your tie.”
“Yes sir,” says the ambassador.
“Also this dinner tonight?” I say. “I didn’t bring the right jacket, so I’ll need to wear yours.”

Tuesday
Such a special evening in Buckingham Palace which is so classy that we might even redesign some of our bathrooms to look like it. Today, a press conference with the prime minister.
“So look,” I tell the press, “I know Boris and I also just met Jeremy. And I don’t know anything about Michael Gove but I hear he was a journalist for The Times and I once met a guy from there who looked like the man who gets eaten by a dog in Ghostbusters, so I could maybe call him and ask. But I’d never interfere in your politics, although Sadiq Khan, wow, terrible, and Jeremy Corbyn wanted to meet me although I said no, and not just because he wanted me to go to something called an allotment and none of us know what that is. Also the NHS is totally on the table for a trade deal and isn’t this going well, those crowds, so big, you wouldn’t believe it.”

Wednesday
Up late tweeting abuse at Bette Midler. What a psycho. Today the ambassador says we have to go to Portsmouth for a D-Day ceremony, and I ask why we didn’t do that on Monday, and he says the D doesn’t stand for “Donald”, but actually I disagree.

And later, I’m with the Queen, who is an amazing lady, and who knows why but she looks sad.

“Is one right in thinking,” she says, softly, “that you’ve never served?”
“I own a lotta restaurants,” I shrug, wondering what this has to do with anything. “But I’ve always just paid other people to do it.”

Thursday
After that I went to Ireland to see my friend whose name I do totally know but I just always call him “my friend” anyway, and I told him we both wanted borders and walls, and he said Ireland really didn’t, though, and I said “but what about all the Mexicans?” and that sure shut him up.

Then I told him America was with him against the EU, and he said he was the EU, though, and honestly it made me think that my friend Nigel is right that some of these people simply aren’t onside at all. And then I went off to my Irish golf course, which is not the whole reason I came here, by the way, who even said that, such terrible lies.

Friday
Also, there was a thing in Normandy. Almost forgot. I talked about the importance of the US and Europe standing together against fascism, and Angela Merkel looked incredulous. Losers are always so bitter.

Also I hung out with the Queen again, and then the kids and I agreed there’s definitely a model for us in her operation, except we Trumps are obviously much more down to earth. And then I flew back to Ireland for another round of golf, and the boys went to the local pub, and actually that reminds me we gotta send someone back there to pay for their drinks because obviously none of us carry money.

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