Wednesday, 9 July 2014

What if my Tax Return is wrong or I did not file it in time?


 
The deadline for filing the 2013 tax return was on 30 June but ... what if after the period ended, we realize that there was an error and want to fix it? How to act now?. How to act in each case varies depending on whether the mistake favors the tax authorities or us. 

If our wrong statement favors the Tax Authorities well because you paid more (overpayment) or because you have earned a lower return we should prepare a letter to the tax office where we belong to, where expose what we thought including the correct information or that you needed to fill, for example, excess income, deductions, ... requesting an amount corresponding you later recalculate your new statement. After checking all the figures the tax authorities will notify the resolution giving us a period of time to argue if disagree.

But what happen if you are wrong in your statement to your advantage?

If bringing your statement you made a mistake and this result has charged Treasury more money than they should; or have you come to pay, but you paid less than you would have to pay. In this case the procedure is to make an additional statement (Declaración Complementaria). As the futher statement will be file out of time, the Tax Authorities will require us to pay a default interest but they will not charge any penalty in case we fix the tax return before they notice.
If after the deadline we realize that we are required to file the tax return then the Tax Authorities will charge an extra percentage that will depend on the date on which we file the tax form. The percentages are:
5% if the tax return is filed within the next 3 month after the deadline of presentation.
10% if is filed within the following 6 months
15% if filed within the next 12 months
20% if the income tax is submitted after 12 months from the deadline.before any tax requirement from the Tax Office.
The tax authorities will not charge a further penalty if the tax return y is filed before they notify us the lack of presentation, in other case the tax office could start a process that could end in a penalty.
In case you have any query regarding this matter do not hesitate in contact VP Advisers and remember that to avoid mistakes the best is leave your tax affairs in hands of professionals.

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