Tax Inspection Act

A tax inspection report is a document that shows the results and conclusions of a tax investigation.

The tax inspection certificate is issued by the Tax Inspection at the end of a review or verification by the Tax Agency on a specific declaration.

One of its main functions is to indicate the measures to be taken by the State Administration after a tax investigation if there has been an anomaly, or simply to officially corroborate that it has not given any negative result on the inspected individual or company. That is, they are susceptible to being carried out if the State supposes or sees indications of any conduct outside the legality of taxes within a certain economic activity.

This type of document is usually considered as the most important element in a tax investigation, since it includes the facts investigated, the actions of the bodies in charge of the investigation and the corresponding regulations resulting from the same in the form of liquidation or payment of a penalty in most of the cases.

The preparation of a record is always preceded by a meeting with the administrative body. This is in charge of laying the foundations of the investigation and the matter that is going to be verified with respect to a company or person. In Spanish legislation, it is the General Tax Law that explains and formalizes the nature of this tax tool.

Content of a tax inspection report

Among the elements that a tax inspection certificate must contain, the following should be highlighted:

• The place and date of the formalization.
• The identification and tax data of the file to be investigated.
• The identification of the tax technicians or inspectors who carry out the verification.
• Details on the duration of the same indicating its beginning and end (especially in investigations whose duration exceeds one year).
• Essential elements of the taxable event.
• Relevant facts or conclusions of the verification.
• Support with fiscal legislative material that justifies the conclusions obtained.
• Possible claims of the person or company affected by the investigation.
• Specific details of the possible penalties or regulations for surcharge or return.
• Indication by the person under investigation regarding their agreement or disagreement with said regularization.
• Actions to be taken as a result of the check
  Indication of other possible infractions.

Types of tax inspection records

Thus, the different types of existing inspection records are the following:

• Minutes with agreement: Used in cases where an application of undetermined legal concepts is required, the appraisal of the facts for the application of the rules or in cases in which it is not possible to accurately measure or estimate the data contained in the verification. It then supposes an agreement between the parties that supposes that there is a 50% reduction in the penalty imposed by the Administration, which must authorize said agreement and manage the collection of the penalty.
• Certificates of conformity: The investigated accepts the settlement offered by the Administration, with which a penalty reduction of 30% is applied.
• Acts of nonconformity: In the latter case, the person under investigation declares that he does not agree with the conclusions of the administrative investigation and its support with legislative material as argumentation.

It is also necessary to point out that there are previous acts, with provisional provisions by the tax body, and definitive ones, which indicate definitive resolutions.