What happens when a taxpayer agrees or disagrees with an inspection proposal?

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An inspection record (acta) sets out the inspectors’ proposal; it is not, by itself, the final tax assessment. The competent authority issues the assessment. Agreement or disagreement affects the later procedure and may affect evidential consequences and penalty reductions.

RECORD IN CONFORMITY

By signing in conformity, the taxpayer expressly agrees with the proposal. The competent authority has one month, counted from the day after the record, to notify one of the decisions allowed by section 156(3) of the General Tax Act (LGT). If none is notified within that period, the assessment is deemed issued and notified in accordance with the proposal on the following day. If payment is due, the payment period under section 62(2) LGT runs from the date on which the assessment is deemed notified, unless an express assessment is notified.

Conformity cannot simply be withdrawn. Facts and elements determining the tax debt that the taxpayer accepted are presumed to be correct, although the taxpayer may provide evidence of a factual error. The resulting assessment may still be challenged within the applicable time limit; doing so can affect the penalty reduction.

RECORD IN DISAGREEMENT

Disagreement is recorded when the taxpayer does not accept the proposal. The same procedure applies if the taxpayer refuses to sign or fails to attend the signing appointment. None of these circumstances means that the taxpayer has agreed. The taxpayer may submit representations within 15 working days: from the day after signing the record, refusing to sign, or—if the taxpayer does not attend—notification of the record. The supplementary report must be supplied with the record. The competent authority then considers the record, report and representations before notifying the assessment. It may order the file to be completed; if it changes the proposal on issues the taxpayer did not raise, it must open the further representation period required by the regulations.

PENALTY REDUCTIONS

If a monetary penalty is imposed for an infringement covered by sections 191–197 LGT, conformity reduces it by 30%. This reduction does not automatically apply to every penalty. If the taxpayer challenges the tax adjustment, the reduction is recovered.

After any conformity reduction, the remaining penalty may be reduced by a further 40% if it is paid in full within the period under section 62(2) LGT (or within the period of an approved deferral or instalment plan secured by a bank guarantee or surety insurance and requested in time) and neither the assessment nor the penalty is challenged. If either requirement is not met, the reduction is recovered.

For a record by agreement, the penalty reduction is 65%, subject to different conditions and effects; the additional 40% reduction does not apply to those penalties. Challenges to the assessment are also subject to special restrictions. Before signing, review the facts, calculations, legal grounds, tax debt, penalty and available remedies separately.

Main provisions: sections 144(2), 155–157 and 188 LGT; articles 187–188 and 191 of Royal Decree 1065/2007; article 30(2) of Law 39/2015.