Post by account_disabled on Mar 7, 2024 13:27:04 GMT 8
In a previous article, we echoed the change in criteria of the Supreme Court regarding the taxation of late payment interest paid by the Tax Administration when making a return of undue income. late payment interest Index Rating: Criterion of the Supreme Court Quantification: Response from the DGT Criterion welcomed with some controversy Rating: Criterion of the Supreme Court Specifically, through the Judgment of (recourse 2059/2020) , the Supreme Court establishes as a doctrine that " the late payment interest paid by the Tax Agency when making a return of undue income is "subject and not exempt from income tax, constituting a capital gain that constitutes general income .
Previously, the High Court, in the Judgment ofrecourse 7763/2019) , had ruled that “ the late payment interest paid by the Tax Agency when Asia Mobile Number List making a return of undue income is not subject to personal income tax .” Well, a Binding Consultation from the General Directorate of Taxes has recently been published , in which the taxation of these late payment interests and their specific quantification are analyzed ( DGT CV0238-23, of February 13 ) .
Quantification: Response from the DGT In the response to this query, the General Directorate of Taxes refers to the change in criteria of the Supreme Court, proceeding to resume the classification of capital gain for late payment interest paid by the Tax Administration when making a return of undue income. This qualification will mean its integration into the general tax income.
Regarding the quantification of this capital gain, the consultant had raised the possibility of reducing said gain in the expenses incurred in the contentious procedure resolved in his favor (lawyer and attorney fees), as well as in the expenses of the loan that he had to request to pay the amount claimed by the Tax Administration. However, the General Directorate of Taxes rejects such possibility based on article 34.1.b) of Law 35/2006 on Personal Income Tax , which establishes that the amount of capital gains or losses will, in the assumptions other than the transfer, the market value of the assets.
Previously, the High Court, in the Judgment ofrecourse 7763/2019) , had ruled that “ the late payment interest paid by the Tax Agency when Asia Mobile Number List making a return of undue income is not subject to personal income tax .” Well, a Binding Consultation from the General Directorate of Taxes has recently been published , in which the taxation of these late payment interests and their specific quantification are analyzed ( DGT CV0238-23, of February 13 ) .
Quantification: Response from the DGT In the response to this query, the General Directorate of Taxes refers to the change in criteria of the Supreme Court, proceeding to resume the classification of capital gain for late payment interest paid by the Tax Administration when making a return of undue income. This qualification will mean its integration into the general tax income.
Regarding the quantification of this capital gain, the consultant had raised the possibility of reducing said gain in the expenses incurred in the contentious procedure resolved in his favor (lawyer and attorney fees), as well as in the expenses of the loan that he had to request to pay the amount claimed by the Tax Administration. However, the General Directorate of Taxes rejects such possibility based on article 34.1.b) of Law 35/2006 on Personal Income Tax , which establishes that the amount of capital gains or losses will, in the assumptions other than the transfer, the market value of the assets.