Tax inspection in Spain. Common errors
What to do if a company or individual receives a tax inspection notice. PART II
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 our last post (Tax inspection in Spain. Advice – BZN LEX INTERNATIONAL LAWYERS), we analysed some of the legal tips to consider when receiving a letter from the tax office or any other administration.
In today’s post, we will focus on the common errors to avoid:
6. Consider whether regularisation is appropriate before the procedure progresses
In some cases, reviewing the documentation may reveal a genuine error: an undeclared invoice, an incorrectly claimed deduction, or an incorrectly paid amount. Depending on the stage of the procedure, it may be possible to file a supplementary tax return or correct the situation. However, the impact on surcharges, interest, and penalties must be assessed.
Regularisation should not be carried out automatically without first analysing the scope of the administrative procedure already initiated.
7. Know the taxpayer’s rights
The taxpayer has duties to cooperate, but also rights. Among others, the taxpayer has the right to receive information about the procedure, to submit arguments, to provide documents, not to resubmit documents already provided if they identify when and to which body they were submitted, and to appeal administrative acts they consider unlawful.
In addition, the Administration must act within the limits of the procedure initiated. A limited tax review is not the same as a full tax inspection, and they do not have the same scope or powers.
8. Common mistakes to avoid
When receiving a tax inspection notice or request from the tax authorities, it is advisable to avoid:
- Missing deadlines.
- Responding without first reviewing the documentation.
- Providing more information than necessary.
- Signing official records without reading them.
- Giving improvised or contradictory explanations.
- Destroying, altering, or “reconstructing” documents.
- Failing to coordinate the response between the company, the tax adviser, and the lawyer.
9. When to seek professional help
It is advisable to consult a professional from the outset if:
- The amount under review is significant.
- Several tax years or several taxes are involved.
- There is a risk of penalties.
- A large amount of accounting or banking documentation is requested.
- There are related-party transactions, companies, rentals, inheritances, or asset transfers.
- The Administration summons the taxpayer to appear in person.
A good strategy from the beginning can prevent mistakes that may be difficult to correct later.
10. Conclusion
When facing a tax inspection or request from the tax authorities. The most important thing is not to rush and not to ignore the notice. You should identify the procedure, monitor the deadlines, organise the documents, respond accurately, and seek advice if the matter is complex or involves financial risk. Acting in an organised manner from the outset often makes the difference between a simple review and a more serious tax problem.
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 carrying out a comprehensive background legal analysis of 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 in 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 to 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
