Prescription of debts with the Treasury
Tax debts prescribe as a general rule 4 years from the date on which the legal term that the taxpayer has to file the declaration or settlement ends. For example, the deadline for filing the income tax return ends on June 30, therefore from July 1 these 4 years of limitation period begin to count.
During that period of 4 years, the Treasury can claim the debt, and not only that, but in addition to the tax debt, you can also claim interest and there is a possibility that you will be sanctioned. In addition, the limitation period of 4 years is interrupted by the fact of claiming the debt by any means, so that when the Treasury initiates the corresponding file, the limitation period is paralyzed and does not run to our benefit.
Procedures that the Treasury can initiate to verify the taxpayer’s tax returns
The Treasury has several administrative procedures through which it can verify and claim the tax debt, and sanction the taxpayer for non-compliance. In addition to claiming the debt, you can also enforce it, which means you have the ability to pursue the debtor’s assets until the outstanding debt is satisfied.
The most common procedures are as follows:
- Limited verification procedure: through this procedure, the Treasury verifies all the facts and circumstances surrounding and determines the existence and amount of the tax obligation, that is, the possible debt. In other words, it checks whether the data that the taxpayer has declared are correct or not in view of reality. This procedure can also be initiated when the taxpayer has not filed a certain return, to check whether he had the obligation to file it or not.
In the notification of initiation of the procedure, the Treasury must indicate what tax and year or period it is checking, and may require us to provide the file with information or documents necessary for the purpose of the verification.
- Tax inspection procedure: it is a procedure similar to the previous one, but the investigative powers of the Treasury are more exhaustive, and therefore can carry out activities with a greater scope.
- Sanctioning procedure: it is the administrative procedure necessary for the Treasury to file a sanction or economic fine for non-compliance with tax obligations.
During the processing of this type of procedure, the Treasury must demonstrate that there has been culpability in the conduct of the taxpayer, because that is the basis of the sanctioning power.
- Collection procedure: once it is declared that the tax debt exists and that the taxpayer has not satisfied it, the Treasury has legal tools to collect it by itself, through the collection procedure that is launched when the voluntary payment period granted to the taxpayer ends.
When this voluntary period ends, the executive period automatically begins, in which the Treasury can pursue our assets and execute them in payment of the tax debt, provided that they are adequate and of proportional value to cover the outstanding debt.
Period for hearing the interested party to present arguments
When the Tax Agency initiates any procedure, there is a period of hearing to the interested party (taxpayer) during which allegations can be presented to oppose or distort the conclusions of the Treasury or the reasons it exposes to consider that the tax debt exists and that it has the right to claim it. In addition to the pertinent allegations, there is also the possibility of providing documents that prove or reinforce our position against the Treasury.
If the taxpayer submits these allegations within the deadline, the Treasury has the obligation to rule on them in the resolution of the file. You can uphold or reject them, but you must give the reasons for your decision. If it considers that the allegations are correct and considers them in full, we will get the file archived without having to pay anything, because the Treasury will have given us the reason. This is not easy, and to reach this successful result there must be real, demonstrable and weighty arguments that indicate that the debt they are claiming from us does not exist, is incorrect, or has already been paid.
Appeals against administrative acts issued by the Tax Agency
When we already have the resolution issued by the Tax Agency on the file initiated, if we do not agree with it, several types of resources can be filed to discuss it and try to get a pronouncement in our favor. The resources we have are the following:
- Appeal for reconsideration: it is the most common resource in administrative proceedings. It serves to challenge the resolution issued by the Treasury, and expose our arguments against it.
The appeal is resolved by the same department of the Tax Agency that has processed the file and issued the appealed resolution.
To file this appeal, there is a period of one month from the day following the date of notification of the decision that we appeal. The filing of the appeal is optional, that is, you can go directly to the economic-administrative claim, or file an appeal for reversal, and if it is rejected, go to the economic-administrative route.
- Economic-administrative claim:
The appeal is decided by the Regional Economic Administrative Court (of the relevant Autonomous Community), or the Central Economic Administrative Court, depending on the matter in question.
To file this appeal, there is a period of two months from the day following the date of notification of the decision that we appeal.
It is also of interest to note that there is a general period of 6 months that the Tax Agency has to issue an express resolution of the procedures that it initiates ex officio, counted from the date of notification of the agreement to initiate the file to the interested party. That is, if within that period of 6 months you have not notified the resolution of the procedure, the procedure expires and can not continue to be processed. Yes, you can start a new one with the same object, provided that the tax obligation has not prescribed.
Both to present allegations of the hearing process and to file any appeal or verify the possible prescription of a debt or the expiration of an administrative file of the Treasury, it is important
Have legal advice
for its drafting and to prepare the arguments to be presented, since the final resolution of the file will depend on its result. \
Do not hesitate, our tax team is ready to help you.
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