Facing a tax inspection can create uncertainty, but proper preparation and a proactive approach make the difference between a complicated process and one that is resolved smoothly. Below, we explore the key aspects that every company should consider to manage a tax inspection without setbacks. However, it is important to first understand the object, the responsible body, and the phases that make up this process.

 

Tax inspection

 

Inspector procedure for verification and investigation

Article 145 of Law 58/2003, the General Tax Law (LGT), states that the goal of the inspection procedure is to verify and investigate the proper fulfillment of the taxpayer’s tax obligations and, if necessary, regularize their tax situation through one or more assessments.

  • Verification refers to checking and comparing the information provided by the taxpayer in their tax declarations.
  • Investigation refers to probing beyond what the taxpayer has declared to detect possible irregularities.

Responsible Body

It is the responsibility of the State Tax Administration Agency (AEAT) to initiate an inspection procedure. The law stipulates that the procedure can be initiated in two ways:

  • On its own initiative, meaning the Tax Administration decides to start the procedure on its own. This occurs when, after an analysis or review, the Administration deems it necessary to verify the correct application of the taxpayer’s tax obligations.
  • At the taxpayer’s request, where the taxpayer can request a general inspection, which starts within 6 months of the request.

Phases of a Tax Inspection Procedure

Article 150 of the LGT states that the actions of an inspector process must generally be concluded within 18 months. This period consists of various stages:

  • Start: the law stipulates that, at the beginning of the inspection procedure, the Administration must inform the taxpayer about the nature and scope of the inspection, as well as their rights and obligations during the process.
  • Processing: the Tax Agency collects information, analyzes documentation, and, if there is a breach of tax obligations, proceeds with the issuance of reports containing proposals for regularization.
  • Conclusion: the proposal is accepted, or objections are raised, leading to the settlement, which is the calculation of the tax debt.

 

Document organization: The first step towards peace of mind

One of the fundamental pillars for facing any tax review is having complete and well-organized documentation. Invoices, contracts, receipts, accounting books, and any other records related to the company’s activity must be up to date and stored in an accessible manner.
Additionally, it is advisable to perform periodic reviews of accounting records to identify possible inconsistencies before the inspectors do. Well-maintained accounting not only facilitates inspections but also reflects the professionalism of the company.

Compliance: Preventing issues before they arise

Meeting tax obligations is not only a legal matter but a key preventive tool. Companies should ensure they:

  • File declarations on time and correctly.
  • Correctly apply tax deductions.
  • Stay up to date with changes in the regulations applicable to their sector.

Regular compliance is one of the best ways to demonstrate transparency and minimize the risk of penalties or additional requirements during an inspection.

 

Prior preparation: Simulations and internal audits

One of the most effective strategies to reduce the stress of an inspection is conducting periodic internal audits. These reviews help detect possible errors or areas for improvement before the inspectors point them out.
Another useful practice is to conduct inspection simulations, analyzing areas that could be subject to review, such as the correct application of VAT or the justification of deductible expenses. This exercise helps prepare and respond swiftly to any requests.

 

Managing communication during the inspection

When a tax inspection is underway, maintaining clear and organized communication is crucial. It is important to:

  • Provide only the requested information.
  • Respond precisely and without ambiguity.
  • Request clarifications if any request is unclear.

The goal should be to cooperate with the inspectors, ensuring the process runs smoothly and professionally.

 

✅​ Expert Support: The difference between uncertainty and security

Facing a tax inspection can be a challenge, especially for companies that do not have specialized staff in this area. Professional advisory services not only prepare the company in advance but also assist throughout the process, providing technical support and representing the company before tax authorities.
At Adlanter, we guarantee a comprehensive and personalized approach to manage tax inspections with total peace of mind for your company. With an expert team and advanced tools, we help businesses navigate these processes safely and efficiently, ensuring regulatory compliance and protecting their interests.

Contact our professionals and discover how we can help you face a tax inspection without worries.

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