"Tax Planning" and "Tax Fraud"

"Tax Planning" and "Tax Fraud" have in common that both prevent, totally or partially, the payment of taxes, whose taxable event is not done or occurs in a less burdensome manner. This is achieved by choosing different paths to those ordinary or expected .

The Tax Planning option is lawfully chosen between various legal alternatives, one effect of which is to obtain a tax advantage.

In the Tax Fraud actually, and despite the outward appearance, the choice is not materially lawful, as it is achieved by using improper means, for the sole purpose of obtaining that Tax advantage.

The Tax Office has to calculate the tax due in accordance to the legal nature of the real fact, as defined by law, with no regard to the appearance or name the parties may have given to it. However the Tax Office cannot as a result of fraud of law invoice the proper taxes without the prior express declaration of the existence of such fraud of law.

The declaration of the existence of fraud of law with tax implications requires an specific procedure in which the corresponding proof is furnished to the interested parties.