Skip to content
Back to index
V3776-16 8 September 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · actualización de balances

Balance sheet update option cannot be revoked once the tax return filing period has ended

A company inquired whether it could request a refund of the tax paid on asset revaluation after deciding to liquidate the business without applying said revaluation. The Directorate General for Taxes (DGT) ruled that the update is an option that cannot be rectified once the statutory deadline for filing the tax return has passed.

The question raised

Question posed: Considering that the taxable event of the revaluation of assets has not occurred and that the company has proceeded to prepare its liquidation based on the existing asset valuation prior to the referenced proposal, would it be possible for the Administration to recognize the taxable event as non-existent and, as a consequence, consider the amount liquidated by the company as tax to be an undue payment, thereby making a request for its refund feasible.

The DGT's ruling

The updating of balance sheets is a voluntary option that must be exercised within the regulatory filing period. According to the General Tax Law, options exercised through a tax return cannot be subsequently rectified, unless the rectification is submitted within the same regulatory period. Therefore, the annulment of the revaluation is only possible if it is carried out before the end of the filing period for the corresponding tax return.

Email
Contact