The Department of Management has a proposal that will require changing the current legislation

That of the Taxpayer Defense Council requires actions without fraud for the first mistake

"I was surprised that the Management Department of the Tax Agency has a proposal that is about to materialize so that taxpayers who make a mistake without fraud do not suffer sanctions on the first occasion", commented the president of the Council for the Taxpayer Defense (CDC) of the Ministry of Finance, Jesús Rodríguez Márquez.

The Plenary of the Council for the Defense of the Taxpayer (CDC) has already formulated, for its part, a proposal to improve the possibilities of rectifying errors without sanctions, as part of a strategy to encourage voluntary tax compliance.

Access to the tax profile

Thus, he responded, within the framework of the XXXII Congress of the Association of State Treasury Inspectors (IHE), to the criticisms made by the tax lawyer, Esaú Alarcón, regarding the situation of lack of right to error, advocating that "the taxpayer has the right to access to your online tax profile 365 days a year, 24 hours a day, for the last five years and if you see that someone has detected an error, you can correct it without penalties. It is a modification that does not need a legislative change.

Errors in tax returns are paid, whether they are simple oversights or intentional fraud. The General Tax Law (LGT) defines that it constitutes a tax offense to present "incomplete or inaccurate self-assessments and declarations, as well as documents related to customs obligations," provided that economic damage to the Treasury has not been or cannot be caused.

The sanction in these cases consists of a fixed pecuniary fine of 150 euros plus the corresponding late payment interest. If incomplete census declarations are presented, the penalty rises to a pecuniary fine of 250 euros. The most common are errors when confirming erroneous data in the draft of the IRPF and in the preparation of the declaration of this tax. The sanctions grow when there are economic losses for the Treasury.

The Board considers that in the first place, it must be decided, in the clearest way possible, what type of errors may have a fit and limit the number of them that are admitted and when the records generated by those are canceled to avoid a new reason for increase of the litigation. In addition, it can never mean a reduction in the tax rate, it can only affect surcharges, interest and penalties and the regularization must be complete.

Also, it considers that it should be defined whether tax advisers or intermediaries are included, taking into account that they present a high number of declarations and are especially vulnerable to the commission of mere involuntary errors. And finally, it considers whether a reform of the LGT would be necessary or, on the contrary, an interpretative work of it would suffice.

Thus, the Council proposes to exempt or reduce late-payment interest in certain cases, always in the absence of intent, introducing a subjective default, which would bring tax interest closer to civil interest; admit rectifications of non-intentional errors or in bad faith upon request of the Administration: also define how many errors are admitted, by tax and in how long; take into account the history of the taxpayer when assessing their responsibility; intensify preventive actions that allow and facilitate voluntary regularization; develop codes of good tax practices and the reform of the LGT.

Source: The Economist

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