How should a company face a tax audit in Spain?

Regardless of the reason that triggers the tax audit, the company must know what actions to take to verify its scope.

General vs. partial tax audit

The scope of a tax audit can be general or partial. Unless the communication received expressly states the opposite, tax audits are considered general.

If the scope of verification is partial, the company has a period of 15 days to request an extension from partial to general. In this way, the report issued after the inspection’s completion will be final concerning the taxes and periods audited and cannot be audited again in the future.

Actions against tax verification

After receiving the communication and determining the scope -general or partial- of the tax audit, the actions to take are:

Prior verification of the tax situation and the state of the accounting documentation

It will make it possible to identify in advance any risks that might be detected and, if necessary, to try to solve or reduce such eventuality.

Review of the principal operations or transactions

In the case of special operations (corporate restructuring operations), it is essential to carry out a thorough analysis of the transaction and its documentation to verify the existence of possible tax risks.

Preparation and verification of the documentation to be delivered

Properly preparing the documentation to be delivered allows for a good climate of collaboration so that the inspection flows in a good atmosphere.

Review of inspection procedures

The proceedings are public documents issued by the Inspectorate to record facts and statements, both from the Inspectorate and from the company. As they form part of the administrative file and constitute a factor of proof for possible appeals against the result of the inspection, a careful revision is necessary before their content is approved.

If your company is being subject to a tax audit or you need additional information regarding this subject, do not hesitate to contact us.

This article is not considered as legal advice

Mariscal & Abogados

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