What is an economic-administrative tax claim?

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An economic-administrative claim is an administrative remedy for reviewing certain tax acts. The review is carried out by economic-administrative bodies, which exercise their review powers with functional independence, even though they form part of an administrative structure (Articles 228 and 234 of the General Tax Law, LGT). They should not simply be described as “judge and party”.

Which acts may be challenged and which body has jurisdiction depend on the subject matter and the authority that issued the act. At State level, the bodies include the Central Economic-Administrative Tribunal (TEAC) and the regional and local tribunals (TEAR/TEAL). The Autonomous Communities and Cities with a Statute of Autonomy determine their own review bodies. As a general rule, TEARs hear in first or single instance the matters assigned to them by law. The TEAC hears certain challenges to acts of central bodies at first instance and decides ordinary appeals where available. TEALs have specific territorial jurisdiction in Ceuta and Melilla. Acts for which the final administrative decision is legally reserved to the Minister or Secretary of State are excluded from economic-administrative claims (Articles 226–229 LGT).

Under the general regime, a claim may be filed directly without first lodging a reconsideration appeal (recurso de reposición). If reconsideration is lodged first, a claim against the same act cannot be brought until that appeal has been expressly decided or may be treated as dismissed by administrative silence (Article 222.2 LGT; see sections 4.1 and 4.2).

The general deadline for lodging a claim is one month from the day after notification of the act. In cases of administrative silence, the claim may be lodged from the day after the effects of silence arise. A specific calculation rule applies to periodically due debts notified collectively. As a general rule, the written claim is submitted to the administrative body that issued the act for forwarding to the competent tribunal. It should identify the claimant, the challenged act, an address for notices and the tribunal. It may simply request that the claim be admitted or include the arguments and supporting documents from the outset. If arguments are included, the issuing body may annul the act in whole or in part before forwarding the file, provided no prior reconsideration appeal was lodged (Article 235 LGT).

If the initial claim does not include arguments, the claimant is generally given one month to make submissions and provide evidence once the administrative file has been received. The tribunal may review factual and legal issues arising from the file, whether or not raised by the claimant, but may not worsen the claimant’s initial position. If it intends to examine issues not raised by the parties, it must first allow them to make submissions (Articles 236 and 237 LGT).

The amount in dispute determines the procedure and whether an ordinary appeal to the TEAC is available. In general, an ordinary appeal is available where the claim exceeds €150,000, or €1,800,000 for claims concerning tax bases or valuations; it is also available in cases of indeterminate amount. Below those thresholds, a TEAR decision will usually conclude the economic-administrative route, subject to the rules on jurisdiction and appeals applicable to the case. As a general rule, the abbreviated procedure before a single-member body applies to claims below €6,000, or €72,000 for claims concerning tax bases or valuations. The amount is calculated under the regulatory rules and does not always equal the sum of multiple debts listed in the same act (Article 245 LGT and Articles 35–36 and 64 of Royal Decree 520/2005).

The maximum duration of the procedure at any instance is one year from the date the claim is lodged. If no decision has been notified within that period, the claimant may treat the claim as dismissed for the purpose of bringing the next available appeal; the tribunal remains under a duty to issue an express decision. The former six-month limit mentioned in the previous version is not the applicable rule. If enforcement was suspended, expiry of the one-year period may affect the accrual of late-payment interest under Article 240.2 LGT.

The economic-administrative procedure is free of charge. However, costs may be imposed if a claim is dismissed or rejected as inadmissible and the tribunal finds and gives reasons for bad faith or recklessness. Filing a claim does not automatically suspend enforcement: suspension must be requested under Article 233 LGT, subject to statutory exceptions, including the automatic suspension of challenged tax penalties. Once the economic-administrative route has been exhausted, the decision may be challenged before the competent administrative court. That court is not necessarily a High Court of Justice; jurisdiction depends on the act and the Administrative Jurisdiction Act (Articles 234 and 240–241 LGT; see section 4.10).

Main legislation: LGT, Articles 212.3, 222.2, 226–241 and 245–246; Royal Decree 520/2005, Articles 35–36 and 64; Administrative Jurisdiction Act, Articles 8–14. Always check the notice of appeal rights to confirm the competent body, procedure and deadlines for the particular act.