Did you forget to pay the first installment of the Municipal Property Tax (IMI)? The term ended on Sunday and risks paying interest. The good news is that all is not lost: there is still time to minimize the damage.
For the sake of clarity, Executive Digest spoke to EY experts and compiled five questions and answers. See below:
1- I missed the deadline. And now?
As with other taxes, the failure to pay IMI within the legally established period for voluntary payment determines that arrears interest (at an annual rate of 4.786% for 2020) is paid and legitimizes the Tax Authority to initiate an enforcement process. with a view to enforcing the default of the missing tax.
The tax enforcement process is only extinguished with full payment of the amount due, plus the respective procedural costs, and, as a general rule, it can only be suspended by providing a guarantee for the purpose and filing a gracious claim, hierarchical appeal, judicial challenge, request for arbitration or judicial appeal related to the debt in execution. There are cases in which the defendant may be released from the provision of security for the purpose of suspending the execution process.
Note that, under the IMI Code, this tax is paid (i) in a single installment in the month of May, when the amount of IMI to be paid is equal to or less than 100 euros, (ii) in two installments, in the months May and November, when the amount of IMI payable is greater than 100 euros and less than or equal to 500 euros and (iii) in three installments, in May, August and November, when the amount of IMI to be erased is higher to 500 euros. When the tax must be paid in more than one installment, the payment of one of them after the deadline determines the immediate maturity of the remaining installments.
If tax enforcement proceedings are instituted, procedural costs will be due, which are determined according to the amount of tax due.
3 – How should I proceed?
Taxpayers can request the Tax Authority (AT) to pay in installments of the tax debt, to pay in kind or to offset the tax debt with tax credits or other credits on the State.
4- Are there penalties for paying IMI in installments?
There is no penalty whatsoever if IMI is paid in installments under the terms of the law. However, if payment in installments is requested following the initiation of the execution process, the amount to be divided into installments does not include interest on late payments, which continue to be due in relation to the debt included in each installment and up to the full amount. payment.
5- I do not agree with the value of IMI. What can I do?
In the event of an error in the settlement attributable to AT, the taxable person may make use of the general guarantees provided for in the tax legislation, namely, of a gracious claim, request for an unofficial review, of the judicial challenge process or, as an alternative to the latter, of a arbitral pronouncement request addressed to tax arbitral tribunals.
In case the taxable person does not agree with the tax equity value fixed for the property and cause (base value for the application of the IMI rates), he can request a second assessment of it and, in the alternative, file a complaint with the matrix, in which case In this case, it will only have future effects.