DID THE TAX OFFICE IN SPAIN FROZEN YOUR BANK ACCOUNT?

The collection of tax debts is a power attributed to the Administration. Banks are authorized to perform the cash service in administrations and delegations.

Although they do not have responsibility for management nor are they considered collection bodies, they do act as collaborating entities when collecting taxes.

The collection of these taxes can be done in a voluntary period or in an executive period. However, when payments are not paid during these times, the Administration may proceed to seize the taxpayer’s assets until the debt is fully satisfied.

Payment of taxes in voluntary period

We all have a deadline to make our payments of our taxes to the tax office in Spain. These payments are made on your own initiative. The settlements carried out by the Administration must be paid in a voluntary period. When the taxpayer does not pay the debt in the voluntary period, the collection begins in the executive period. The collection is carried out through the enforcement procedure, by means of the notification of an enforcement order, which is the act of the Administration that orders the enforcement against the debtor’s assets.

Executive period surcharges

There are three types of surcharges at this time:

– Executive: it is a 5% surcharge and it is applied when the totality of the debt not entered in the voluntary period is satisfied, before the notification of the enforcement order.

– Reduced payment: this 10% surcharge is assigned when the totality of the debt not paid in the voluntary period and the surcharge itself are satisfied, before the end of the period provided for the entry of the debts in the executive period notified through an order of pressure.

– Ordinary constraint: a 20% surcharge is applied when the two previous surcharges do not correspond, that is, when the payment occurs after the deadline for payment in the executive period has ended.

These surcharges are incompatible with each other and are calculated on the total debt not paid in the voluntary period. The only surcharge that is compatible with late payment interest is the ordinary compulsory surcharge (with 20%).

The seizure procedure of the debtor’s assets

If the taxpayer does not pay his tax debt after the term stipulated in the enforcement order, a Seizure Order is issued for their assets. In this way, the amounts owed are collected, the tax surcharge, interest and, where appropriate, the costs of the enforcement procedure produced.

In the tax seizure process, the unattachable assets, the seizable assets and the order in which the seizures are made are determined. According to the regulations, the seizure of assets is carried out in the following order:

– Money in cash or in accounts opened at credit institutions. If there is an account whose ownership corresponds to several people, only the part that concerns the debtor is seized.

– Credits, bills, securities and rights realizable on the spot or in the short term (less than 6 months). They can be disposed of regardless of the final redemption date. The sale is carried out through the official secondary markets under the best possible conditions and must comprise a number of securities that cover the total amount of the debt.

– Salaries, salaries and pensions. These concepts are intended to finance the basic needs of the debtor. In accordance with article 607 of the Civil Procedure Law, the salary, salary, wage, pension, remuneration or its equivalent, which does not exceed the Minimum Interprofessional Salary (SMI), is unattachable.

– Property. In order to seize a property, it must be owned by the debtor. If an asset owned by the debtor, according to a public deed, does not appear in his name in the Registry, due to not having presented it, the Treasury may urge its registration and then seize it. According to article 140 of the Mortgage Regulation, at first the seizure is suspended and annotation of the suspension is taken and, later, the owner is required to register his domain and, in case of refusal, it can be requested judicially.

– Interest and income. If the seized are income obtained by companies or commercial, industrial and agricultural activities, an administrator or controller can be appointed. When the income that is intended to be seized correspond to the exploitation rights of a work protected by the Industrial Property Law, they are considered wages.

– Commercial or industrial establishments. A diligence is extended, where all the assets and rights existing in each seized establishment, as well as the tools that are seized, are recorded. In addition, the preventive entry of seizure must be made in the Register of Movable Property.

– Jewelry, precious metals and antiques.

– Movable property. Article 92.4 of the Billing Regulation, relating to the seizure of cars, trucks, motorcycles, boats, aircraft or other vehicles, states that the seizure is notified to the debtor so that within a period of 5 days they make it available to the collection bodies, with your documentation and keys. If it does not do so, an order is given to the authorities for the capture, deposit and seal of these goods.

– Long-term realizable credits (over 6 months). The seizure is carried out through a seizure procedure that must identify the values ??known to the Administration and includes a number of values ??that cover the total amount of the debt.

What assets are unattachable

Furniture and household items, in addition to the clothes of the debtor and her family, which cannot be considered superfluous, are unattachable. In general, goods such as food, fuel and others that, in the opinion of the court, are essential so that the debtor and the people who depend on him can attend to their subsistence with dignity.

Likewise, the books and instruments necessary for the exercise of the profession, art or trade to which the debtor dedicates himself are unattachable when their value is not in proportion to the amount of the claimed debt.

Other unattachable assets are sacred assets and those dedicated to the worship of legally registered religions, amounts expressly declared unattachable by Law and assets declared unattachable by the Treaties ratified by Spain.

How to act before tax embargo

The first thing you have to do when you are seized is request the administrative file. In it you can verify if the procedure has been followed legally and see if the embargo is justified.

In the event that the procedure has been breached, you can challenge it by filing the appropriate resources.

If you have exhausted all avenues of administrative appeals, you can file a contentious administrative appeal at the judicial headquarters.

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