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Cookies Policy

 SFT SERVICIOS JURIDICOS S.L.P., uses own and third party cookies to obtain browsing data of our users in order to offer quality services and provide a better browsing experience and to identify technical problems that may appear on the web. Likewise, if you give your prior consent through your browsing, we will use cookies, which allow us to obtain more information about your preferences and to customize our website based on your individual interests.

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Monday, 10 February 2025 08:02

Penal Code Reform Strengthens Penalties Against Tax Fraud

The Government approved in January 2025 a new reform of the Penal Code that toughens penalties for the crimes of tax fraud, money laundering and corruption in the public and private spheres. The measure, which will enter into force next month, aims to strengthen the fight against tax evasion and improve transparency in resource management.

The reform introduces key changes to articles 305 and 305 bis of the Penal Code, increasing the penalties for cases where the amount defrauded exceeds 600,000 euros. In these cases, prison sentences may be extended to up to eight years, instead of the current limit of six. In addition, accessory penalties are toughened, such as disqualification from economic activities and the impossibility of receiving public subsidies.

Another novelty is the extension of the statute of limitations for tax offences from five to ten years in particularly serious cases. The law also introduces new tools for the prosecution of fraud, such as the strengthening of collaboration between the Tax Agency and the Anti-Corruption Prosecutor's Office.

The Minister of Justice has pointed out that this reform seeks to harmonize Spanish legislation with European Union guidelines on economic and financial crime. According to Directive (EU) 2017/1371 on the fight against fraud affecting the financial interests of the Union, Member States must ensure effective, dissuasive and proportionate sanctions for these crimes.

From SF Abogados, we highlight the importance of this reform for entrepreneurs and individuals, as it tightens the criteria for the exoneration of criminal liability in companies that do not have effective compliance programs. The implementation of adequate fraud prevention protocols becomes a key element to mitigate legal risks.

If you need advice on how to adapt your company to the new regulations or have doubts about their impact, SF Abogados is at your disposal to offer you the best legal guidance.

The reform of the Criminal Code regarding tax and Social Security fraud was published in the Official State Gazette (BOE) as Organic Law 1/2025, of January 2, which we include at the bottom in downloadable pdf.

Additional legal sources:

- Spanish Criminal Code, articles 305 and 305 bis.

- Directive (EU) 2017/1371 on the fight against fraud.

- Law 10/2010 on the Prevention of Money Laundering and Terrorist Financing.