Tax Inspection Procedures
Inspection Procedure
a) Proceedings of Verification and Investigation: Check and investigate the proper implementation of tax obligations, and if necessary, stabilize the situation required by the practice of one or more settlements. Be distinguished:
- Evidence: Truth and accuracy of the acts, the elements contained by taxpayers in their statements.
- Research: Aims to discover the existence of relevant undeclared tax facts.
b) Actions to Obtain Information: To obtain tax information with transcendence, the administration has two options:
- Obtaining by Delivery: The Tax Administration determines data on relations with third parties without the need for the taxpayer expressly required to do so.
- Uptake or Requirement for Obtaining Individualized: The tax authority explicitly requests certain information with tax transcendence from the bound party.
c) Actions by Checking Values: Inspection of the taxes is entitled to perform acts of checking the value of dues, fees, products, goods, estates, businesses, and other elements necessary for the determination of tax obligations.
d) Informs: The obligation at the beginning of the proceedings of inspection.
Powers of Tax Inspection
Review tax documentation with transcendence. The inspections are made by examining documents, books, and auxiliary accounts, files, invoices, and correspondence with tax significance, computer databases, programs, records, and computer files relating to economic activities, as well as by inspecting goods.
Farm Input and Recognition: The inspectors may enter farms or places where activities or holdings subject to tax are located, where there are goods taxed or taxable events occur.
The taxpayer must pay the inspection and will provide appropriate cooperation in the development of their functions.
Consideration as Agents of Authority: The inspection of taxes in the exercise of its functions is considered to be agents of authority.
The Procedure of the Inspection
- Start: Automatically (be notified of the process and required to appear in such a place on the date indicated) by the taxable.
- Scope: The scope of action can be general inspection (verified, affects all elements) or partial. The subject must know their reach.
- Deadline: Must finish the process in 12 months, although it can be 12+ if an extension is possible due to particularly complex or concealed information.
- Place and Hours: The tax residence or place where encumbered acts are made, respecting the activity schedule.
- Termination: The proceedings leading to the act of liquidation.
Acts (of the Inspection)
Content of Records: Must contain:
- The place and date of finalization.
- The full name or full name, the NIF, and the tax domicile of the obligated party.
- The essential elements of the taxable event or budget made the tax liability.
- Where necessary, adjustment of the tax status of the proposed settlement required and appropriate.
- Agreement or disagreement with the taxpayer’s adjustment and proposed settlement.
- Presence or absence of evidence to commit tax offenses.
Classes of Records: The records are classified according to their processing:
- Minutes in Accordance: Its purpose is to reduce conflict and difficulties in the implementation of an event that is difficult to quantify concretely, so an agreement can be reached with the inspector and in return be rewarded to the subject with a 50% reduction of the sanction.
- Proceedings Under: The inspection record that extends when the taxpayer agrees with the proposal for regularization. This circumstance is recorded in the minutes. If sanctions are imposed as a result of this settlement, a reduction of 30% shall apply.
- Minutes of Dissent: These records extend the inspection when the taxpayer or their representative does not sign the act, is not present at the scheduled date for signing the record, or expresses displeasure with the proposed adjustment.
As for the handling of the minutes of dissent, the following phases can be distinguished:
- Deadline for Submissions: He shall have a period of 15 days to present arguments from the date of the act or the date of notification.