Tax Authorities may verify the validity of voluntary representation

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the capacity of the Administration to verify the validity of voluntary representation in tax procedures. This resolution addresses the uncertainty surrounding the temporal validity of powers of attorney granted to act before the Public Treasury.

What the DGT has ruled

The query focused on the accreditation and temporal validity of the power of attorney granted to represent a third party. In the absence of specific regulation in Tax Law determining how long a voluntary representation power remains valid, the DGT has ruled the following:

• The Tax Administration is fully competent to verify the accreditation of voluntary representation.
• As there are no specific tax rules regarding the validity regime of this representation, supplementary law must be applied.
• Such application is based on Article 7.2 of the General Tax Law (LGT).

What it means for you

This criterion has a direct impact on natural persons acting through voluntary representation before the Administration. It means that the validity of a power of attorney is not a matter that the Administration must accept without examination; rather, it has the authority to verify whether the representation remains legitimate and valid at the time of the action.

For the taxpayer, this implies that the documentation accrediting the authority to act on behalf of another must comply with the validity requirements established in supplementary law, thereby avoiding potential representation defects that could invalidate procedures or communications.

What should be done

It is necessary to ensure that powers of attorney granted for the management of tax matters are up to date and comply with applicable regulations. Since the Administration may question the validity of the representation, it is fundamental to verify the documentation before performing any action on behalf of third parties. It is recommended to assess the particular situation of each representation to avoid contingencies in administrative procedures.