TEAC rules tax withholding debts from inspections cannot be deferred

The Central Economic-Administrative Tribunal (TEAC) has unified the criteria regarding the payment of tax debts resulting from inspections. The ruling establishes that debts related to withholdings and on-account payments cannot be deferred or split into installments, even if the debt is discovered and quantified by the Tax Agency during an audit.

This decision clarifies the application of Article 65 of the General Tax Law. While the law already excluded withholdings from deferral options, the TEAC ruled that the origin of the debt—whether voluntarily declared or discovered during an inspection—does not change its legal nature. Previously, some regional rulings had distinguished between voluntarily declared withholdings and those calculated by the administration after an audit, allowing for deferrals in the latter case.

The ruling impacts self-employed individuals and small to medium-sized enterprises (SMEs) that manage withholdings for payroll, professional invoices, or rental income. Those facing such liquidations must pay within the voluntary period or face surcharges, as no payment schedules will be permitted for these specific types of obligations.