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V1313-14 16 May 2014 · SG de Tributos Criterion in force
IRPF · medidas cautelares

The Administration may withhold refunds through precautionary measures if there are indications of collection risk

The inquirer asks whether the Tax Agency can withhold their Income Tax (IRPF) refund due to debts owed by the companies they manage. The Directorate General for Taxes (DGT) responds that it is possible to adopt precautionary withholding measures if there are indications that the collection of the debt would be frustrated or hindered.

The question raised

Can the tax Administration withhold the taxpayer's IRPF refund as a consequence of the tax debts assessed by the Inspection against the companies managed by the taxpayer?

The DGT's ruling

To withhold tax refunds, the Administration must provide evidence of rational indications that the collection of the debt would be frustrated or seriously hindered. Likewise, the interested party must be the holder of a tax debt or a procedure for declaration of joint, several, or subsidiary liability must have been initiated against them. If these requirements are met, precautionary measures such as the withholding of refunds may be adopted.

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