What to do if a company or individual receives a tax inspection notice. Part I
Dear friends, clients and readers,
Receiving a communication from the Spanish Tax Agency can be worrying, but it does not always mean that an infringement has been committed. In many cases, it is a verification or inspection procedure intended to review data, documents, or tax returns. The key is to act quickly, in an organised manner, and with appropriate advice.
1. Read the notice carefully
The first step is to check what type of procedure has been initiated: a request for information, a limited tax review, a tax inspection, or an enforcement/collection measure. Each procedure has different consequences and deadlines.
It is particularly important to check:
- The authority issuing the notice.
- The tax and tax year concerned.
- The deadline for responding.
- The documents requested.
- Whether an in-person appearance, electronic submission, or written response is required.
The Spanish General Tax Law recognises rights of taxpayers, including the right to be informed and assisted by the tax authorities and to know the status of procedures in which they are involved.
2. Do not ignore the request
Ignoring a notice from the tax authorities is usually the worst mistake. If no response is filed within the deadline, the Administration may continue the procedure based on the information available to it and may even initiate penalty proceedings for failure to comply with the request.
If it is not possible to gather all documents in time, it may be advisable to request an extension of the deadline or to submit a partial response explaining which documents are still pending and why.
3. Gather the documents in an organised way
Before responding, it is advisable to prepare a file with all information related to the tax or tax year under review. For companies and self-employed individuals, the following documents will usually be relevant:
- Sales and purchase invoices.
- VAT, income, and expense ledgers.
- Bank statements.
- Contracts with clients or suppliers.
- Payroll, social security, and withholding tax records.
- Proof of payments and collections.
- Deeds, loan documents, or corporate documentation, where applicable.
For individuals, the following may be relevant:
- Personal income tax returns.
- Supporting documents for deductions claimed.
- Purchase deeds, inheritance, or gift documents.
- Bank certificates.
- Receipts and proof of expenses.
- Documentation relating to rentals, properties, or capital gains.
4. Answer only what is being asked
The response should be clear, complete, and prudent. It is not advisable to provide unnecessary documentation or lengthy explanations that may open up new areas of review. The response should focus on what has been requested and should attach only the relevant documents.
It is also important to keep a copy of everything submitted, together with proof of filing or electronic submission.
5. Be careful with appearances and official records
If the tax authorities summon the taxpayer or the company to appear, it is advisable to attend with a tax adviser or lawyer, especially if it is a formal inspection procedure.
During an appearance, the tax authorities may draw up an official record, which will reflect the statements made and the documents provided. Before signing it, it should be read carefully. If anything does not accurately reflect what happened, you may ask for it to be corrected or add an express statement.
Finally, due to the length of this article, we will continue our analysis in the next post.
HOW TO CONTACT US FOR FURTHER SPECIFIC ADVICE?
We hope you find this information useful. Remember that this is not intended to be specific legal advice, just a general overview. As independent lawyers, we can help you both by assisting you with all tax & administrative enquiries as well as by carrying out a comprehensive background legal analysis on your consultation or problem, if required.
Should you be interested in receiving more specific information or simply get an independent 2º opinion (either about this particular subject or any other), you can contact our firm several ways:
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Finally, thank you very much for your attention, and in case you might have any questions or doubts at all, again please do not hesitate to contact us. We would like to stress the point that you will be in good hands, and you can be reassured that we will look after your interests in the most committed and professional way.
We look forward to helping you and the benefit of our “know-how”.
Kindest regards
Mr Oscar Ricor
“NON-PRACTISING ENGLISH SOLICITOR IN ENGLAND AND WALES”, under the “Solicitors Regulation Authority” (SRA) SRA number 519196 and practising Spanish Solicitor. BZN LEX INTERNATIONAL LAWYER
