Spanish Equity Release Fiasco

As many of you already know, the ERVA has organized a gathering at the Malaga Tax Office (Avenida de Andalucía number 2, next to El Corte Inglés), Monday the 9^th of April 11.30 a.m. (if wish to arrive earlier we will meet in front of El Corte Inglés at 11 a.m.), with the purpose of submitting a tax “denuncia” against the Equity Release banks.

The main aim of this action is to make the Spanish Tax Authorities aware that their Danish counterpart, the Danish Tax Authority (SKAT), as well as the Danish Ministry of Taxation, have already labeled these schemes as fraudulent and started an investigation.

The form below should ideally be printed and filled out by hand, in block capitals, so that it has a more personal touch than a form that only has an original signature. The denunciations will be grouped and Lawbird will attach relevant contractual and marketing documentation we already have, classified by banks.

If you are not able to print and fill out don’t worry, we will take forms that can be filled out there and then.

We will require from you, if at all possible, a copy of the mortgage loan signed with the denounced bank. Failing this, a copy of a “nota simple” showing the mortgage loan registered against it. If you are not able to obtain this, so long as the property details are recorded on the form, we will proceed with filing, and at a later date we will submit the paperwork that is missing.

Also, please bring your passport and a copy.

We expect the Tax office to start an investigation into the activities of the banks because of the fraudulent nature of the proposal, and the loss of revenue as a result. We must not forget that it is almost certain that the tax evasion element of such products has already materialized in some cases, if we consider that hundreds of owners would have been deceived into signing up these products and a few, sadly, are likely to have passed away, some probably due to the enormous stress caused by the actions of the thieving banks.

Please note that this is an important gathering: from the point of the claimant, it is the start of the civil action against the bank in question since obtaining an opinion from the Tax Office is crucial in destroying the validity of the contracts, and from the point of view of the bank, it is the formal communication to the Tax Office of an ill-conceived scheme devised in conjunction with unethical unregistered IFAs, that openly invited customers to violate fiscal laws in Spain (and elsewhere too).

Should there be any change between now and Monday, we will advise by email and also, by publication on the ERVA forum.

Documents

• Denunciation Form (PDF – 170 kb)

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Euan Armstrong and Antonio Flores discuss the denunciation to be lodged with the Spanish Hacienda, that is to be held on the 9^th of April 2012, at 12.00 am, in the Delegacion de la A.E.A.T. de Málaga (map). Claimants will gather outside at 11.30 a.m. for a peaceful protest and it is expected that the different press will cover the action.

Tax Office Building in Malaga

The denunciation consist of a writ to the Tax Office informing them that the denounced bank(s), with a view to capture new clients, offered a product that supposedly would mitigate the impact of Inheritance and Wealth Taxes when, as it has turned out, actually consisted on a tax fraud proposition for such taxes could have never been avoided.

The writ will be standardized and denouncers will just have to fill out their personal details, the bank involved and the date of signing of the mortgage deed. We will load the denunciation on this website on the following days. Denouncers will be able to fill out the form at home, and bring it to the meeting, or fill it out on day and have it signed.

The only document that will be required is a copy of the mortgage deeds, or escritura de préstamo hipotecario. This can be sent to either Euan or Ian, or can be brought to the meeting. 

Story originally published on the ERVA website.

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