BackLast February, the Superior Court of Justice (TSJ) of Madrid analyzed the offsetting of tax losses. Due to a series of data and circumstances, the Chamber affirms that in January 2018 the Tax Agency limited itself to adjust the amount of the negative tax bases of the protagonist entity in its self-assessment of the 2016 fiscal year with respect to the amount that remained pending application in the self-assessment of the 2015 fiscal year.
This taxpayer did not report the settlements for the years 2011 and 2012 and, in addition, it was in agreement with the amounts of the negative taxable bases set by the Tax Agency body.
Article 25.5 of the revised text of the Corporate Tax Law, approved by Royal Legislative Decree 4/2004, states that the compensation of the taxpayer for the negative tax bases must be accredited through various accounting documents. Such accounting is alien to the practice of the Administration, so that such negative tax bases pending compensation, at the end of 2015, could not be checked by the management body of the Tax Agency.
The management body corroborated the non-existence of negative tax bases from between 2013 and 2015 pending compensation in the 2019 liquidation. The fact that the liquidation of the years from 2011 to 2015 is not final responds to the principles of enforceability and effectiveness. Therefore, these assessments are enforceable and their effects are produced from the date on which they are notified to the taxpayer.
The Tax Administration ended up eliminating the negative tax bases of the taxpayer as they did not exist, so the Tax Agency did not have to follow any specific procedure to cancel the provisional liquidation.
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