Bill to toughen penalties for tax and Social Security fraud

Automatic summary, not yet reviewed

1. The bill would lower from 120,000 to 50,000 euros the threshold at which defrauding the Public Treasury becomes a crime, punishable by one to six years in prison and a fine. It would also punish with lighter penalties (six to eighteen months in prison or a fine) fraud above 4,000 euros against the European Union budget.
2. Penalties would be tougher when the fraud exceeds 250,000 euros, uses straw persons, tax havens or organized structures, or is committed within a criminal group.
3. The threshold for Social Security fraud and fraudulently obtaining public subsidies to be a crime would be set at 50,000 euros, with one to six years in prison and a fine. Articles 305 bis, 307 bis and 307 ter would be repealed; the latter had allowed prosecuting benefit recipients with no minimum amount.
4. Anyone who regularizes their tax or Social Security situation, or returns subsidies with interest, before the authorities or the prosecutor open proceedings would be exempt from criminal liability. The reduced penalty under Article 309 would require, in addition to payment, active cooperation to clarify the facts or identify other offenders.
5. Punishment for keeping double books or making fictitious entries would be tougher (one to two years in prison), and penalties could be increased when the offender is a public official or a company, which could be barred from contracting with public administrations.
6. Crimes committed before the law takes effect would be judged under the previous law, unless the new one is more favorable to the defendant, and final convictions could be reviewed applying the most beneficial rule.

Who it affects

• People who defraud the Public Treasury or Social Security by more than 50,000 euros: They could face one to six years in prison and a fine, and lose access to subsidies and tax benefits for three to six years.
• People who obtain public subsidies over 50,000 euros by faking conditions: They could face prison and fines, but would be exempt if they return the money before being investigated.
• Workers, unemployed people and pensioners who wrongly receive benefits: They would no longer face criminal charges for any amount, since Article 307 ter would be repealed, returning to administrative sanctions.
• Companies and public officials responsible for these crimes: They could receive aggravated penalties, including being barred from contracting with public administrations.

Words worth knowing

Hacienda Pública

The public treasury of the state, the autonomous communities and local governments, that is, tax money.

Regularizar

Paying off tax or Social Security debts before an investigation begins.

Paraíso fiscal (tax haven)

A country or territory with very low or no taxes, sometimes used to hide money.

Persona interpuesta (straw person)

A person or company acting on behalf of another to hide who the real responsible party is.

Doble contabilidad (double books)

Keeping two different sets of accounting books to hide or falsify a company's real situation.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries