Victims of digital scams may deduct losses from their Personal Income Tax if they can prove them

Fraud in digital environments has become a growing problem that directly affects the assets of individuals. Given this situation, doubts arise as to whether the money lost in these scams can be used to reduce the tax burden in the income tax return.

What the DGT has ruled

The Dirección General de Tributos (DGT) has determined that the amount lost due to deception or a scam constitutes a capital loss, as it represents a negative variation in the value of the taxpayer's assets. Since it is not a loss derived from the transfer of assets, this amount must be integrated into the general taxable base of Personal Income Tax (IRPF).

However, the ruling underlines an essential condition based on current regulations: according to article 33.5.a of the IRPF Law, those losses that are not duly justified shall not be accounted for. The Administration has the power to assess whether the means of proof provided are sufficient to confirm the existence of the economic loss.

What it means for you

If you have been a victim of a scam on digital platforms, you have the possibility of applying that loss to decrease your general taxable base. However, it is not enough to simply declare the movement of funds leaving your account. The key lies in the ability to demonstrate that the money was not a voluntary transfer of an asset, but rather the result of deception.

The regulations require the taxpayer to prove the loss through means of evidence admitted under law. This implies that the Tax Administration will analyze the veracity and sufficiency of the documentation presented to validate the right to the deduction.

What you should do

For the loss to be accepted by the Administration, it is necessary to collect all the documentation that allows for the reconstruction of the facts. This includes:

• Banking documentation certifying the movement of funds.
• Communications with the platform or the scammers.
• Any other documentary evidence that allows for the proof of the deception.
• Documentation related to possible reports filed with the authorities.

Each situation is unique, and the sufficiency of the evidence will be subject to assessment by the Administration. It is fundamental to assess each case individually to ensure that the documentation complies with the requirements of the General Tax Law and the Civil Procedure Law.