How does an inspection start?

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The tax inspection procedure is initiated ex officio or, in the cases provided by law, at the taxpayer’s request (articles 147 and 149 of the General Tax Act, LGT). At the start, the Tax Administration must inform the taxpayer of the nature and scope of the proceedings and of their rights and obligations.

Initiation is usually notified by a written communication identifying the tax obligations and periods under review and, where applicable, requiring the taxpayer to attend and provide or make documents available. Attendance may be required at a Tax Administration office or another place permitted by law. A requirement to attend an office that was not made in the taxpayer’s presence must allow at least ten days, counted from the day after notification (article 87.4 of Royal Decree 1065/2007).

The inspection may also begin by inspectors appearing without prior notice at places permitted by law, where the proceedings require it and subject to the applicable access safeguards. Taxpayers must attend to the Inspection and cooperate; they may appear in person or through a representative. Personal attendance may be required only exceptionally, with reasons, when the nature of the proceedings makes it necessary (article 142.3 LGT).

Failure to comply with a duly notified requirement or an unjustified failure to appear may amount to resistance, obstruction, excuse or refusal to cooperate with the Tax Administration. Whether an infringement has occurred and any penalty must be assessed under the requirements and circumstances in article 203 LGT; the law does not make every failure to appear automatically punishable after a universal sequence of three requests.

Entry by inspection officials into land, business premises and other places covered by article 142.2 LGT requires consent from the taxpayer or the person in charge of the premises, or prior authorisation by the competent administrative authority. Entry into a constitutionally protected home requires consent or judicial authorisation; the application for judicial authorisation must include the administrative entry agreement required by articles 113 and 142.2 LGT. Constitutional protection depends on the legal status of the place, so the same entry rules do not apply to every premises or property.

Main legislation: Law 58/2003, General Tax Act, articles 113, 142, 147, 149 and 203; Royal Decree 1065/2007, articles 87 and 177.