What if the Treasury does not grant the requested postponement or fractioning?

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The consequences of refusing a deferral or payment-in-instalments application depend on whether it was filed during the voluntary or enforcement period. For an application filed during the voluntary payment period, notification of the refusal opens the payment period under Article 62(2) of the General Tax Law (LGT), subject to the exceptions in the second paragraph of Article 161(2) LGT.

For a debt arising from an administrative assessment, Article 62(2) provides that payment is due by the 20th of the month following notification if notice is received between the 1st and 15th, or by the 5th of the second month following notification if notice is received between the 16th and the last day of the month. If the due date is a non-working day, it moves to the next working day.

If payment is made within that period, late-payment interest is calculated from the day after the original voluntary payment deadline until the date of payment. If payment is not made, interest is calculated up to the end of the new payment period, without prejudice to any further interest accruing under Article 26 LGT. The enforcement period begins on the following day and enforcement proceedings must be initiated.

If the application was filed during the enforcement period, refusal means that enforcement proceedings must be initiated under Article 167(1) LGT if they have not already begun. The Tax Administration may initiate or continue enforcement while the application is being processed, subject to the statutory limits on the sale of seized assets. In this case, interest is calculated once payment has been made, under Articles 53(3)(b) and 72 of the General Collection Regulations.

Legislation: Articles 52(4) and 53(3) of the General Collection Regulations; Articles 26, 62(2), 65(5), 161(2) and 167(1) LGT.