B Law & Tax
13 March 2024

The Court declares that the rectification request does not interrupt the prescription period as it is not related to previous inspection actions

It is emphasized that the appellant seeks to apply the deduction to avoid double internal taxation of dividends, a matter that was not addressed in its self-assessments for the years 2009 and 2010.

The Superior Court of Justice of Madrid, in its ruling of December 13, 2023, examines whether the rectification request made by the appellant is appropriate or, conversely, whether the right to a refund has expired.

Firstly, it is established that both parties agree that by the time the rectification request was submitted on February 27, 2018, the four-year period had already elapsed regarding the years 2009 and 2010.

However, the appellant argues that this four-year period was interrupted due to the inspection actions related to the fiscal years in question, which began on November 9, 2013, and concluded with the issuance of a conformity report on March 25, 2014.

The Court emphasizes that management or inspection actions do not interrupt the calculation of the deadline to request the rectification of the self-assessment unless the tax obligation to be rectified is the same as the subject of such actions. In this case, given the absence of such identity, it allows the interested party to request the rectification of its self-assessment regarding a tax obligation not under review by the Administration.

It is noted that the inspection actions focused on verifying the applicability of the Reduced Dimension Company Regime, and the resulting settlement proposal from these actions did not address the aspects related to the deduction to avoid double internal taxation of dividends, the central reason for the rectification request.

Therefore, as the prescription was not interrupted, it is concluded that the four-year period had already elapsed concerning both years at the time of the rectification request.

Finally, the Court determines that it has not violated the doctrine of own acts or the principles of legitimate trust and good administration, and consequently, dismisses the appeal in its entirety.

B Law & Tax International Tax & Legal Advisors.


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