The Supreme Court has confirmed that the singer Joaquín Sabina must pay 2.5 million to the Treasury by rejecting the appeal filed by the artist against the liquidation of the fiscal years of 2008, 2009 and 2010 in relation to the declaration of income from rights of author and three societies.
According to the ruling, to which EFE has had access, the contentious-administrative Chamber of the high court has rejected the appeal filed by the singer against the April 2022 ruling of the National Court, which confirmed that the settlements were according to law.
Specifically, it refers to the liquidation made by the Treasury for the fiscal years of 2008, 2009 and 2010 on the declaration of income from copyright and three companies for an amount of 2.5 million euros.
Sabina had appealed the resolution of the Central Economic-Administrative Court (TEAC), of 2019, which in turn confirmed that of the Regional Economic-Administrative Court of Madrid, of 2017, on the claim filed by the singer for liquidation by personal income tax in those three exercises and against the sanction that was imposed.
The judgment of the National Court explained that Sabina was the majority partner and joint administrator of the entity Ultramarinos Finos SL, the majority partner of the company Relatores SL and father of one of the partners of the entity El pan de mis niñas SL.
He pointed out that the amounts received from the company Ultramarinos Finos SL in the tax periods 2008, 2009 and 2010, as income from work, were as consideration for the provision of artistic services.
Sabina had assigned the other two companies the copyright of her work and of the one she composed in the future and for this assignment she did not receive any amount, according to her tax returns, and the total operating income of said entities came from the exploitation of the aforementioned copyrights.
As a consequence of the regularization carried out by the Treasury, settlement agreements were issued to these three companies for their Corporate Tax, considering that the services provided by the artist to society were an expense related to income and, therefore, deductible from the tax. income statement of the company.
Correlatively, it was agreed to increase the tax base of the singer's Personal Income Tax.
Now, the Supreme Court has agreed to reject the appeal filed by Joaquín Sabina for processing, appreciating that "it is not sufficiently substantiated that one or more of the presuppositions" that, according to the law, "allow us to appreciate the objective appeal interest and the appropriateness of a pronouncement" of this Chamber.
It refers to the jurisprudence already dictated by this Chamber to indicate that the questions raised by the appellant regarding the valuation methods in related party transactions "must be understood as essentially resolved".
In the order, its rapporteur, Isaac Merino, explains that it is not appropriate to impose costs on the appellant and recalls that there is no appeal against this resolution.
