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V5092-16 24 November 2016 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · prescripción

Statute of limitations on Transfer Tax depends on proof of private document delivery to a public official

A query was raised regarding whether the Transfer Tax (ITP) settlement for a 2005 sale was time-barred, given the contract was submitted to the City Council on that date. The Directorate-General for Traffic (DGT) ruled that the statute of limitations only applies if it is proven that the document was delivered to an official in the course of their duties.

The question raised

Whether the assessment of the Transfer Tax and Documented Legal Acts Tax, which levies the purchase and sale transaction, is time-barred in application of Article 1.227 of the Civil Code, by reason of having been delivered to a public official by reason of their office and the private contract being dated by the City Council.

The DGT's ruling

If the delivery of the private document to a public official by reason of their office is proven, the date of the document shall be the date of said delivery pursuant to Article 1.227 of the Civil Code, which shall determine the statute of limitations. If delivery is not proven, the date for the statute of limitations shall be the date of the public deed of formalization, and the tax must be settled based on the actual value of the asset at that time.

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