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European Commission Says Spain Imposing 'Disproportionate' Sanctions

The European Commission referred Spain to the European Union’s Court of Justice for imposing “disproportionate penalties” on Spanish taxpayers who violate sanctions, the EC said in a June 6 press release. Spanish taxpayers must report on any properties, bank accounts…

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or financial assets they hold abroad, the press release said, and are sanctioned if the information is not reported accurately or on time, sometimes facing sanctions “higher than those for similar infringements in a purely domestic situation.” The EC said Spain’s sanctions penalties are “disproportionate and discriminatory,” and may “deter businesses and private individuals from investing or moving across borders in the Single Market.” Spain’s sanctions are “in conflict with the fundamental freedoms of the EU,” the EC said.