During its nearly two-year investigation of Juan Carlos I, the Supreme Court Prosecutor’s Office found that the former head of state committed, after his abdication in June 2014, numerous tax irregularities, but ruled out criminal action against him by accepting the regularizations as good presented to the Treasury in 2020 and 2021. That guarantee was granted by the Tax Agency (AEAT) itself after scrutinizing the documentation provided by the previous monarch and the movements of his accounts, a job carried out by officials of the Superior Corps of Inspectors of the National Office of the Fraud Investigation (ONIF) of the AEAT, designated as judicial assistance for the investigation of the Prosecutor’s Office. This team presented five reports between December 2020 and January 2022, which served the Public Ministry to build the account of the events attributed to the king emeritus and, finally, to conclude that they could not have criminal reproach. Despite this, the Prosecutor’s Office recorded that, thanks to the actions of the investigators, 5,095,148 euros have been recovered for the public coffers for the taxes that Juan Carlos I did not pay at the time and ended up regularizing to avoid tax crime .
According to the reports presented by the Treasury before the Prosecutor’s Office, the first complementary declaration that the former monarch presented, in December 2020, was for the inheritance and donation tax. In it, he admitted having received almost 900,000 euros (893,624) in donations from Mexican businessman Allen Sanginés-Krause that he had not declared to the Treasury until then. To settle the debt, he entered 556,412.5 euros. The ONIF officials amended the self-assessment because the representative of Juan Carlos I had made technical errors that had led him to pay 16,788.14 euros more. The Tax Agency verified the existence of 22 donations that generated as many tax contributions, but none of them exceeded the limit of 120,000 euros, so there was no tax crime.
The second regularization, in February 2021, corresponded to personal income tax (IRPF) for the years 2014 to 2018. The ONIF reports indicate that Juan Carlos de Borbón had submitted these returns “on time”, in which he stated as main sources of income the income from work paid by the Casa del Rey and income from movable capital. But those self-assessments hid other earnings that Juan Carlos I did not admit until last year: private flights and accommodations that were paid for by the Zagatka foundation, founded by Álvaro de Orleans, a distant cousin of the king emeritus. Treasury officials put the regularized amount at 4,416,757.46 euros, a figure that the previous monarch paid thanks to “duly documented” loans from friends and companies —12 in total—.
The ONIF and the Prosecutor’s Office only found missing at that time in the regularization of Juan Carlos I the declaration, in the donation tax, of three hunting shotguns that were bought on June 29, 2018 by Álvaro de Orleans and that he gave away to the king emeritus. The total bill amounted to 101,636.37 euros, but the amount that the former monarch failed to declare, 30,411.14 euros, is much lower than the 120,000 euros that imply the existence of a tax crime, so the Public Ministry ruled out acting against him and left the debt in the hands of the Tax Agency. “There is no evidence of criminal relevance derived from the banking activity in the accounts of SMD Juan Carlos de Borbón y Borbón in Spanish banks and it has been confirmed that all benefits for travel […] They have already been incorporated into the complementary declarations of 2021, it only remains to quantify the tax fee derived from the donation of the aforementioned hunting shotguns, subject to inheritance and donation tax, ”concluded the letter from the Prosecutor’s Office.
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