Mounting pressure to tax ‘hidden assets’ in the Balearics
A proposed tax on luxury assets in the Balearics could have a major impact on the superyacht industry…
Superyacht owners in the Balearic Islands could soon be facing a new tax if a proposal tabled at Wednesday's meeting of the Balearic parliament finance committee is passed. The proposal, led by Joana Aina Campomar of Més, calls for the Spanish government to create a specific tax for the Balearics that would target luxury assets that are in the name of companies but are actually personal assets, including superyachts, mansions, high-performance cars and works of art.
The proposal argues that wealthy individuals are hiding these assets behind a corporate screen in order to avoid paying taxes on them. These assets are not necessary for business purposes but are being used to camouflage the true ownership of these assets and evade taxes.
Currently, there is no comprehensive list of how many of these assets are located in the Balearics, but Campomar believes that this information can be compiled by cross-referencing tax data. She believes that the Balearic Islands are one of the most likely places in Spain and the Mediterranean where this type of tax evasion is taking place.
Campomar described these tax avoidance practices as a lack of solidarity, referring to the Spanish government's solidarity tax on wealth. However, the opposition has criticised the proposal, with Antoni Costa of the Partido Popular attacking the left's "tax maelstrom", while Marc Pérez-Ribas of Ciudadanos questioned whether the proposal was simply an attempt to annoy business owners. Pérez-Ribas argued that criminalising business owners would not help to create prosperity.
The Balearic Islands are a popular destination for superyacht owners, and this new tax could have significant implications for the superyacht industry. With the rise of corporate ownership of superyachts, it is becoming increasingly important for the government to ensure that taxes are being paid on these assets. The tax evasion of wealthy individuals has long been a topic of concern, and this new proposal aims to address this issue by targeting the ownership of luxury assets in the Balearic Islands.
If the proposal is passed, the Spanish government will be tasked with creating a specific tax for the Balearics that would target the ownership of luxury assets that are in the name of companies but are actually personal assets. The proposed tax would not only ensure that taxes are being paid on these assets but would also help to create a level playing field for all business owners.
The proposed tax on luxury assets in the Balearic Islands has the potential to have a major impact on the superyacht industry. With the rise of corporate ownership of superyachts, it is important for the government to ensure that taxes are being paid on these assets, and this proposal aims to address this issue. Whether the proposal will be passed remains to be seen, but it is clear that the debate over the taxation of luxury assets is far from over.
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