A court in Madrid has launched an investigation into the amnesty deal offered to the hundreds of Spaniards whose names appeared in the HSBC files, in which suspected tax evaders were quietly offered the chance to pay back taxes and avoid prison sentences of up to six years as well as millions of euros in fines.
The list, leaked by HSBC whistleblower Hervé Falciani, identified more than 650 Spaniards who held accounts at the bank’s Swiss subsidiary. It was handed to Spanish authorities in 2010.
The Socialists, who were in power at the time, shied away from the established norm of launching inquiries into the suspected tax fraud. Instead, those named on the list were sent a letter, informing them that their Swiss bank accounts had been discovered and inviting them to pay the taxes they owed voluntarily. They were given 10 days to respond before an inspection – which could have led to criminal prosecution – would be initiated.
As opposition politicians criticised the Socialists for shielding suspected tax evaders from justice, the Socialists justified their decision, pointing to doubts about the validity of the list and arguing that the manner in which the list was obtained meant it might not be admissible in court.
More than 300 Spaniards took advantage of the offer, handing over €260m (£192m) to Spain’s tax agency. Much of that came from Spain’s Botín family, whose members head Santander bank; they paid €200m (£150m) in back taxes to the Spanish government.
Complaining that the deal was a thinly veiled attempt to “offer impunity” to suspected tax evaders, the union representing tax workers, Gestha, filed a legal complaint in a Madrid court shortly after the amnesty deal was announced, accusing the tax agency’s top brass of a breach of public duty.
The case was initially dismissed by the court, but now has been reopened after a higher court sided with Gestha’s appeal against the decision. Specifically, the court will examine the response of two former senior tax officials to the names on the leaked list.
