Reform of the General Collection Regulations

The main novelties in relation to this Regulation refer to deferrals and installments, the so-called related obligations and the new auction system.

Regarding requests for deferral or installment payments, the following is established, among others:

• In cases of insolvency, the obligation to declare, providing proof, that the tax debt in question is not considered a credit against the estate, to the extent that the tax debts corresponding to such credits are not considered deferred or fractional.

• The inadmissibility of a request for postponement or division if it concurs with a request for suspension at the seat of a review procedure, with the apparent purpose of avoiding delays. It will also be inadmissible when there is a suspension of the processing in administrative headquarters for an alleged tax offense.

• The mention of the possibility of requesting the postponement or splitting of debts corresponding to withholdings and payments on account is deleted from the Regulation.

• It is specified that, in the cases of postponement or installment requests requested in the executive period, the guarantee must also include the surcharges of the executive period that would have accrued. Therefore, the guarantee will cover the amount of the debt in the voluntary period, the default interest generated by the deferral and 25 percent of the sum of both items. Now, when the debt is in the executive period, the guarantee must cover the deferred amount, including the surcharge of the corresponding executive period, the default interest generated by the deferral, plus 5 percent of the sum of both items.

The amounts due will be automatically offset as a result of the regularization process involving related obligations that result in amounts payable and refundable, both during the voluntary payment period. In this case, the accrued late payment interest will also be calculated, in accordance with Article 26.5 of the General Tax Law.

Regarding the auction system , the following modifications are relevant:

• Modification of the legal regime for the alienation of seized assets - in particular, in the auction procedure - to adapt it to the terms and specifications of the electronic procedure provided for in the Auction Portal of the Official State Gazette.

• Among others, a reduction in the amount of the deposit required for participation in the auction (from 20 to 5 percent) is incorporated, in order to enhance participation in it; modifications are introduced to take into account that participation in the auction will be, in any case, by electronic means; and the second tender and the direct award in some case are eliminated, in order to simplify the disposal procedure, as well as its transparency and agility.

The possibility of making payments in kind is also restricted, establishing new grounds for inadmissibility of the application when goods are presented that, due to their characteristics, do not have and can never have the consideration of goods of the Spanish Historical Heritage.

To facilitate the seizure of deposits, accounts or securities in credit institutions, its eventual extension to all assets and rights existing in said institution is facilitated, and not only to those held in the office to which the seizure was directed as was the case before the regulatory change.

The possibility is expressly enabled that the proceedings for the seizure of short-term credits and wages and salaries may be submitted electronically when so agreed with the recipient, in terms similar to the already existing practice with financial entities.

The possibility of preventive annotation in the Property Registry of the legal prohibition of disposal of certain real estate by companies is introduced , when shares or participations of the same have been seized.

The regulations also address the specific collection procedures in cases of liability declarations related to tax offenses , as well as the collection of civil liability for these offenses, expressly referring to the collection of fines.