Do you know how to react to a notification or inspection of the Treasury?
If you get home and have a notification from the Treasury do not panic, you can read this article about types of notifications from the Treasury to really decipher what it is.
On the other hand, it may be that in the same notification you are notified of the start of a Treasury inspection Or maybe the Treasury inspectors come by surprise at your company, store or tax address.
Lately we have received countless cases of companies that receive the notice of initiation of the procedure of an inspection of the Treasury and logically they get scared, most of the time they are people who once were entrepreneurs and decided to leave all the initial management of the company's tax administration in the hands of a manager. As the company grew and became an SME, they still had the same external manager without realizing that the volume and complexity of the operations began to grow large and did not evolve with the company: intra-community taxes, IRPFS, permanent residences, related operations, consolidated groups, etc ... also in Spain we have a constantly changing legislation that facilitates that they can make a communication error and automatically receive a notification from the tax agency.
In most cases they are false positives, due to some irregularity or tax mismatch, which can be solved with a simple administrative appeal, In this video we explain how to avoid it.
What happens if I DO NOT respond to the requirements of the Treasury?
This is a very sensitive point, we must ALWAYS respond, the law requires us to do so from the first requirement and if we do not respond to 2 or more requirements, we will be fined 2,5% of our annual business figure, with a minimum of 10.000 euros.
Why should I go to an expert in finance inspections?
The Treasury inspectors are highly qualified to carry out their work and also have all kinds of resources and privileges at their disposal, so you need to counter those values with specialists at your height. An inspection of the Treasury is an extremely complex and delicate process where you face high fees and penalties.
Can I change representatives before the Treasury?
If, as a taxpayer at any time you can change your legal representative, either for loss of trust or for any other reason, the new legal representative authorized by you will be in charge of communicating it to the Tax Agency and presenting all the required documentation.
Before explaining the different phases of a farm inspection We want you to familiarize yourself with some of the most common terms of the vocabulary used by the Tax Agency and what they mean for the rest of mortals:
- Diligence of embargo: It is a communication in which the Treasury informs that the current accounts, or other assets, are being seized to cover a debt that is owed and that the Treasury has attempted to collect first on a voluntary basis and then with an order of urgency.
- Appellate Providence: It is a communication that is received when the taxpayer has not paid the debt within the deadlines set (voluntary period). It is the beginning of the executive phase (the voluntary period has ended) and involves the payment of a surcharge.
- Crime against public finance: It is a crime when a taxpayer stops paying in a year the minimum amount of € 120.000. Annual amounts below € 120.000 are not considered a crime. It is also necessary that the taxpayer has had the will to stop entering these amounts and it is not a crime when the amount to be paid is due to an error of interpretation of the rule.
- Fiscal fraud: actions carried out by taxpayers to pay less taxes.
- Special tax regimes: These are operations that have a different tax treatment from the general rule.
- Appeal: It is the appeal filed before the Supreme Court against a judgment of the courts of justice (it is the last resort available to taxpayers). You cannot always interpose, there is a list of cases in which you can interpose and a minimum amount (€ 600.000).
- Inspection clearance certificate: It is the document that ends an inspection. It contains the amount of the debt to be paid, and the grounds that justify this debt.
- Minutes of disagreement: It is the document through which the taxpayer who is inspected declares that he is not in compliance with the Inspection Liquidation Act. It has consequences such as the reduction of the penalty for compliance is lost, but allows the settlement agreement to be appealed.
Phases and duration of a Treasury inspection
Below we briefly summarize the different phases that will be carried out by the inspectors of the Tax Agency whose maximum duration is 18 months and with some exception extendable up to 27 months, so we talk about a long and tedious process that should be well controlled so as not to incur more penalties:
- Communication phase: This is the certified notice or notification that reaches the taxpayer.
- Appearance phase: appointment of the taxpayer or his legal advisor with the Tax Agency.
- Accounting phase: presentation of the necessary documentation to audit the company's accounting.
- Stage diligence: Tax Agency values the documentation and creates documents exposing the facts.
- Phase estimates: The Tax Agency makes an approximate calculation of the amounts that it believes have not been collected.
- Phase liquidation act: The Treasury issues an act with a final verdict, which may be of:
- Accordance (We agree with your calculations).
- Disagreement (We disagree with their calculations and we can appeal).
- Agreement between the parties (we reached a pact).
If you want to know more, in this video we explain in a technical way the phases of the inspection and how you can pass a tax inspection.