If your company commits a tax infraction —such as failing to pay or obtaining undue refunds, for example—, the Treasury will demand the corresponding fee and, in many cases, impose a penalty.

Well, the initial amount of that penalty can be significantly reduced by meeting certain requirements. Specifically:

• If you do not appeal the settlement of the principal, you will be entitled to a 30% reduction for agreement on the penalties imposed on you. It is only necessary to agree with the settlement; if you only appeal the penalty, you will still maintain the right to that 30% reduction.

• Likewise, you will be entitled to an additional 40% reduction "for early payment" if you do not appeal either the Treasury settlement or the penalty (that is, if you do not file any appeal against either of them) and if, in addition, you pay the penalty amount within the deadline granted by the Treasury.

If you meet the requirements to enjoy both reductions, the calculation is cumulative. First, the reduction for agreement is calculated on the amount of the initial penalty, and then the reduction for early payment is applied to the resulting net amount. For example, if the initial penalty is 10, 000 euros, the first reduction would be 3, 000 euros (10, 000 × 30%), and an additional reduction of 2, 800 euros (7, 000 × 40%) would be applied to the resulting net amount (7, 000). The total reduction would therefore be 5, 800 euros (58% of the initial penalty), and the penalty to be paid would be set at 4, 200 euros.

 

Our professionals will assist you in case the Treasury requests information from you and will assess the different options in case you receive a penalty.