Every company or self-employed person is subject to the tax authority carrying out any inspections it deems appropriate to verify that tax obligations are being met, as well as to determine that no evasion or tax offence is being committed. In any case, it should be borne in mind that these inspections are random, so they can be carried out at any time.
That said, there is no need to worry in these situations. In any case, in the face of such an inspection, it is always prudent to have proper legal advice to avoid setbacks. In this respect, at BBMabogados we have the best professionals to attend to your needs in tax matters.
When can a tax authority inspection occur?
As we have already indicated, this type of inspection follows a random selection criterion; however, before they occur, the tax authority will usually send us the corresponding prior notice that it will be carried out. This notice may be:
– By postal mail.
– Electronically, through the designated email address.
Bear in mind, however, that such notice may also be given in situ; that is, delivered by the relevant official, who may approach the company’s premises or the self-employed person’s home to inform them in writing that they must appear at the tax authority’s offices on a given date and time.
Likewise, it should be borne in mind that this type of inspection may also take place within the company’s own premises, where officials may attend with their technical equipment to carry out the audit at the physical premises or business location.
Requirements of the notice
At BBMabogados we would like to stress and emphasise that every tax authority notice you receive must be accepted. Nevertheless, when such notice is served it is necessary for the individual to get in touch with their legal adviser, so that the latter can assess whether the notice has complied with the formalities of that administrative act.
If any of the established formalities have not been met, this will be grounds to allege such non-compliance at the time of appearance. Thus, broadly speaking, this notice must contain:
❶ The body from which the summons originates.
❷ The place, date and time at which appearance is required.
❸ The tax years (years) that will be examined and the type(s) of tax(es) to be reviewed.
❹ Everything concerning the actions that will be reviewed, from the start to the end of the period.
❺ The place and time at which the act was issued, as well as the signature of the official who signs the notice.
What to do when the inspection is at the company itself?
The inspection may also take place at the company’s premises or location, without prior notice. However, the tax authority cannot do anything if the owner, administrator or company representative is not present.
In any case, tax authority officials may only enter with the authorisation of the company’s representative or owner, although it should be remembered that under no circumstances should we avoid or prevent these agents from entering, as this could give rise to fines for infringement.
Likewise, this Tax Authority Inspection in Santander can only be carried out in areas open to the public, since the rest are constitutionally protected as regards the right to privacy (such as the area where the accounts are kept or the company’s data is handled). Thus, those officials may only enter such spaces with a prior court authorisation.
For its part, in an inspection within the company, the tax authority may request the same documentation that would be taken to a summons at its offices.
What documents must be taken to a tax authority inspection in Santander?
Among the most common documents that may be subject to audit and which must be provided by the taxpayer are:
– Tax returns.
– Self-assessments.
– Everything concerning the receipt and reporting of data.
– The accounts of the company or self-employed person, that is, the accounting books, invoices, approved budgets, service offers, supporting documents of any kind, among many others.
It is very important to bring this documentation in an orderly manner and to be very thorough when providing it, since the absence of any document may give rise to various types of penalties, as we will see later.
Likewise, it should be borne in mind that if the notice came from one of the Regional Inspection Units, it will not be compulsory to submit the accounting documentation, whereas if it comes from an Inspection Unit of the Tax Authority Office (State Tax Administration Agency, or AEAT), the company’s accounting information will indeed have to be submitted.
Situations that may give rise to an infringement in a tax authority inspection
After an inspection, it may happen that no penalty is imposed or that certain obligations arising from an omission must be met. However, it may also be the case that some type of infringement is declared, either due to concealment of information (omission of documents or absence of supporting records) or the use of fraudulent means (forged documents or documents intentionally designed to simulate a different situation or to attempt to deceive the tax office).
In any case, such situations must be recorded in the relevant records (diligencias), where any irregular events detected will be set out. It is very important to bear in mind that it is at the time of the presentation of these records that the taxpayer must make any observations or objections to the facts presented.
Finally, if you agree with the facts presented by the tax authority, the corresponding assessment (acta) must be signed.
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