Any increase of assets derived from unlawful or unjustified or unknown
source or cause, is considered as business profit under the conditions
provided for in the Tax Procedure Code, unless the taxpayer proves the
actual source of this, and that is has either already been subjected to
taxation or it was exempt from tax under special provisions.
The increase in assets may relate to movable or immovable property of any
kind. The change of the composition or maintaining the assets does not
necessarily mean its increment.
In any event, when an increment of assets is found during the audit, this is
taxed at the rate of 33%, it also required though that assets acquisition
costs are also checked and taken into consideration.
Where the property increment comes from donations, loans, parental
donation, inheritance, etc., the ability of the donor, the lender, the
provider, the deceased to pay the amounts alleged by the taxpayer,
should be checked, as well as whether the increment has been imputed
to the amounts provided by the applicable regulations (eg stamp duty,
parental benefit tax, gift tax, etc.).More news