What is the Inspection of Taxes?

The Inspection can be understood in two ways. At a first level, the term Inspection of the Tributes refers to administrative bodies that are entrusted with, among others, the function to check the tax situation of taxpayers.

They are organs of the Inspectorate of Taxes, within the jurisdiction of the Department of Financial and Tax Inspection
(State Agency for Tax Administration), the National Inspection Office (ONI), the Central Information Unit (UCI), the Special Services area and Audits (ASEA), the Regional Units Inspection of Special Branches and Agencies and Inspection Services of the various administrations of the State Tax Agency.

But besides this, the term inspection can be understood in an objective sense, which is obviously of most interest to the taxpayer, to refer to the function or activity carried out by the said bodies of the Tax Administration in order to verify the degree of compliance with tax obligations by taxpayers.

The most significant functions developed by the Inspectorate of Taxes are as follows:

a) Verification and investigation actions of taxable events.
Although conceptually these two activities can be differentiated (checking consists of the verification of the declared taxable events, while research is aimed at non-declared), in practice they can be confused and, in any case, both seek to verify and, where appropriate, to regularize the tax situation of the taxpayer. The result of these actions of verification and research is reflected on record.

b) Actions of obtaining information from third parties required to provide it to be subject to the duty of collaboration. It constitutes an instrumental activity of the above.

c) The practice of administrative acts of settlement, reflecting the tax adjustment arising from the audits performed.

In addition to those described, the Inspectorate carries out other functions, for example, valuation, verification of compliance with requirements for the granting or enjoyment of tax benefits, information to taxpayers on tax rules and the scope of rights and derivatives obligations thereof, advice and report to the organs of the Treasury, etc...