Tax Inspection Management: Protect Your Interests before the AEAT with Nextica
Facing a tax audit calmly is possible with the right support. We are lawyers who specialise in Tax Authority audits: we handle every procedure and document, protecting your company from penalties and tax claims to achieve the best possible outcome.
If your company is subject to a tax inspection, at Nextica Law & Tax we represent you and manage the process from start to finish, protecting your interests and minimizing risks. The initial statements during an inspection are the ones that most influence the outcome. That’s why having specialized representation from the very first request is not an option: it is the most important decision you will make throughout the process.
TYPES OF MINUTES AND WHEN TO SIGN EACH ONE
| Type of minutes | Reduction of sanction | Appealable? | Recommended strategy |
|---|---|---|---|
| Minutes with agreement (art. 155 LGT) | 50% of the penalty | No (links to the taxpayer) | When the amount is manageable, the arguments are weak, and the client wants to close quickly. The 50% reduction can be very significant in high penalties. |
| Agreement Act (art. 156 LGT) | 30% of the fine | Only the fee, not the penalty | When the regularization is justified but there are specific discrepancies regarding the fee that deserve appeal. The undisputed part is accepted, and what has arguments is appealed. |
| Record of disagreement (art. 157 LGT) | No reduction | Fully appealable | When there are solid arguments to contradict the inspector's proposal. Disagreement opens the way to the TEAR and, if applicable, to the courts. Without a reduction of the penalty but with the possibility of winning the appeal. |
Minutes with agreement (art. 155 LGT)
Agreement Act (art. 156 LGT)
Record of disagreement (art. 157 LGT)
What's worth knowing
We represent you before the tax authority
Preventive audits to fix issues before the inspection
Strategies to minimise the economic and legal impact
What's included
Tax Defense in Inspections
We represent you before the tax authorities, defending your interests and protecting your company from economic penalties and tax claims.
Document Management and Procedures
We take care of collecting and preparing all the necessary documentation for the inspection, managing the procedures with the Tax Agency to ensure a strong and efficient defense.
Efficient Resolution of Tax Inspections
We design effective strategies to resolve tax inspections in the most favorable way possible, minimizing the economic and legal impact on your company.
Continuous Tax Advisory
We provide constant tax advice so that your company is always up to date with the regulations, reducing the risk of future inspections and potential sanctions.
Tax Risk Prevention
We conduct preventive tax audits that allow us to identify potential tax risks before they lead to penalties during an inspection. This way, we can proactively correct any issues.
OUR DEFENSE STRATEGY AT NEXTICA
Incorporation from the first requirement
the initial statements are the ones that most influence the outcome. Acting late is the most common and costly mistake.
Prior analysis of the documentation before each contribution
never deliver more than what is strictly required by the requirement.
Knowledge of inspection deadlines (art. 150 LGT
18 months, extendable to 27 in complex cases): we use them in favor of the client, as the passage of time has effects on late payment interest.
Negotiation with the AEAT when there is margin
many files are closed with adjustments lower than the initial proposal without reaching the TEAR.
Firm resource when the AEAT is wrong
proven experience in procedures before the TEAR and the contentious-administrative jurisdiction.
En detalle
TYPES OF VERIFICATION PROCEDURES OF THE AEAT
◆ Data verification (art. 131 LGT): the mildest procedure. The AEAT detects a discrepancy between the submitted declaration and the data it holds. It is initiated and resolved without the inspector's visit and without major consequences if the correct justification is provided. ◆ Limited verification (art. 136 LGT): a more in-depth review but with restricted powers. The AEAT can only examine the data stated in the declarations and the justifications provided by the taxpayer. It cannot directly examine the commercial accounting. ◆ Tax inspection proper (art. 141 LGT): the most comprehensive procedure. The inspector can request any documentation, conduct visits at the tax residence or in the company's premises, analyze the accounting, and examine various tax years and concepts simultaneously.
THE STAGES OF A TAX INSPECTION AND OUR STRATEGY IN EACH ONE
1. Notification of commencement: the AEAT communicates the opening of the inspection, the periods, and the taxes subject to verification. From this moment, deadlines start running. 2. Inspector's actions: the inspector requests documentation, conducts visits, and may expand the scope of the action. At Nextica, we analyze each request before responding: we never provide more than strictly necessary. 3. Regularization proposal: the inspector formulates their settlement proposal. It is the moment to present well-founded objections to modify or reduce the proposal. 4. Inspection report: the taxpayer can sign in agreement (30% reduction of the penalty), in disagreement (right to appeal), or reach an agreement in the report (50% reduction of the penalty). The choice depends on the available arguments and the amount at stake. 5. Settlement and penalty: if appropriate, the AEAT issues the settlement and, if it finds a tax infringement, initiates the sanctioning procedure. 6. Appeal: before the TEAR (Regional Economic-Administrative Court) or through a review appeal before the AEAT itself, with the possibility of subsequent access to the contentious-administrative jurisdiction.
Frequently asked questions
Do I have to provide all the documentation requested by the AEAT?
You are required to provide the documentation requested by the AEAT within the legally established scope for each type of procedure. However, in a limited verification, the AEAT cannot require you to provide commercial accounting directly (it can only examine it in court or through a notary). In a proper inspection, the scope is broader. A specialized representative knows exactly what to provide, how, and when.
How long can a tax inspection last?
The maximum duration of a tax inspection is 18 months from the notification of commencement, extendable to 27 months in cases of special complexity or when there are signs of concealment (art. 150 LGT). If the AEAT exceeds the maximum term, it cannot charge late payment interest for the period that exceeds, which can represent a significant saving for the taxpayer.
What is the difference between a limited review and an inspection?
The limited inspection has restricted powers: the AEAT can only examine the information from the declarations, the mandatory tax records, and the documents that the taxpayer voluntarily provides, but it cannot directly examine the commercial accounting. The actual inspection has full powers: it can examine all books and records, conduct visits, and request information from third parties.
Can I negotiate with the AEAT?
Yes, through the agreement act (art. 155 LGT). This mechanism allows closing the file with a reduction of 50% of the penalty when there are elements of appreciation that require a joint assessment. It is also possible to negotiate deferrals for the payment of the resulting debt when the company has liquidity difficulties.
How does the reduction of penalties for compliance work?
If the taxpayer signs the compliance report, the penalty is reduced by 30% (art. 188.1.b LGT). If they also pay the reduced penalty voluntarily and do not appeal it, an additional reduction of 25% applies to the already reduced amount. The result is a total reduction of up to 47.5% on the initial penalty. This reduction does not apply to the report with agreement, where the reduction is fixed at 50%.
Let's talk about your case.
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