Criminal Lawyers in International Taxation & Crime

International taxation in its criminal dimension sanctions defrauding conduct using cross-border structures, tax havens, low-transparency jurisdictions, tax residency simulation or transfer-pricing manipulation to erode the Spanish tax base. The central criminal type is the aggravated tax offence (Art. 305 bis CP) sanctioning with 2 to 6 years of prison and proportional fine when circumstances concur such as use of tax havens, interposition of natural or legal persons, opaque structures, or defrauded quota above €600,000. Prescription extends to 10 years, significantly multiplying the temporal risk of international fraud. Consolidated Supreme Court case-law establishes the interpretative criteria of the aggravated type and evidence standards on simulation versus international economy of option.

The commissive modalities are diverse and of increasing sophistication. Tax residency simulation is the most prosecuted modality in large estates, artists and athletes: pretending residence in low-tax countries (Andorra, Portugal with NHR regime, UK with non-dom status, Monaco, Switzerland) while maintaining effective residence in Spain under Art. 9 LIRPF (more than 183 days, center of economic or vital interests). The manipulation of transfer prices in intra-group operations (Art. 18 LIS) seeks to artificially shift profits to low-tax jurisdictions through internal invoicing not adjusted to the arm's length principle. The use of shell companies without economic substance in BEPS-friendly jurisdictions (Netherlands, Luxembourg, Ireland) to channel dividends, interest, royalties or services without real activity. The infringement of the International Tax Transparency (CFC) regime of Art. 100 LIS by not imputing passive income from companies in tax havens. The omission of Form 720 on declaration of foreign assets, after the CJEU judgment of 27 January 2022 annulling disproportionate fines but maintaining the obligation.

The investigation means have evolved radically. The Automatic Exchange of Information (CRS-FATCA) allows AEAT to receive annual data on balances and bank accounts of Spanish residents in more than 100 jurisdictions, including Switzerland, Liechtenstein, Luxembourg, Bahamas and Singapore. Big data analysis crosses thousands of sources: electricity and water consumption for effective residence, credit card movements, tolls, cash withdrawals, mobile geolocation (with judicial authorization in criminal scenarios), social networks, medical visits and schools. Cooperation with OECD, Eurofisc and Eurojust allows coordinated international operations. Reports from massive leaks (Panama Papers, Pandora Papers, Paradise Papers) have generated waves of investigations. Action 5 of the BEPS Plan on harmful tax regimes and the ATAD Directive (Anti-Tax Avoidance Directive) have established European anti-avoidance standards.

Technical defense is built on four axes. First, the accreditation of economic substance and effective management of foreign structures: BEPS Actions 5 and 6 of the OECD require real activity in the country of incorporation; providing documentation of Board meetings held locally, qualified personnel hired at source, real offices with own costs, business risks assumed, contracts with third parties and independent accounting record dismantles the shell-company accusation. Second, the justification of transfer prices under OECD guidelines: provision of Master File, Local File and benchmarking studies with comparable analyses placing the group's pricing policy within the arm's length range, neutralizing the simulation presumption. Third, the defense of effective tax residency abroad: consular residence certificates, rental or acquisition contracts, children's schooling, membership in local social clubs, habitual medical assistance, effective taxation at destination, and proof of physical presence for more than 183 days; application of tie-breaker rules of Double Taxation Treaties (DTT). Fourth, the error of prohibition (Art. 14 CP) when acting with qualified international advice endorsing the structure.

In current forensic practice, international taxation investigations have reached massive dimensions after the creation of the Central International Taxation Unit (UCFI) of AEAT, specialized in cross-border structures, and cooperation with the Anti-Corruption Prosecutor and the Central Investigating Courts. Act 11/2021 on tax-fraud prevention, Organic Law 14/2022 transposing European directives, the ATAD Directive, Directive 2017/1371/EU (PIF), Organic Law 1/2025 on Justice Service Efficiency and Supreme Court case-law on tax residency configure an increasingly demanding international normative framework. At Alonso Sala, our criminal lawyers specialized in international taxation work with multidisciplinary teams of forensic economic experts, international tax specialists, transfer-pricing specialists, collaborating international lawyers in relevant jurisdictions and economic experts to articulate technical defenses that prove economic substance, justify pricing policies, demonstrate effective tax residency or invoke Double Taxation Treaties. The multidisciplinary integration between criminal law and international tax law is critical for successful defenses in this highly specialized area.