Alicante’s Tax Refund Landscape: Delays, Sanctions, and Online Campaign Details

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Thanks to advances in technology and better management, most taxpayers receive their rent refunds in a few days. Yet every year, thousands of people in Alicante start the new year without a single euro in hand. This situation usually affects those whose tax statements trigger requests for more information or extra documents, often due to data that doesn’t match what the tax authority has on file.

In Alicante, by December 30, a notable number remained in this status. In 2022, 12,866 taxpayers in the province represented 2.5% of all refund requests, according to figures released by the Tax Office. That figure is slightly lower than the previous year, when 13,122 taxpayers faced the same situation.

Occasionally, delays stem from processing issues. The Tax Office generally prefers not to pay interest, notes the general secretary of the Gestha Treasury technicians association, Jose Maria Mollinedo. He reminds that when the delay is the Administration’s fault, interest can accrue at up to 4.0625% per year.

An official assists a taxpayer with the latest Income Campaign in Alicante. Joseph Navarro

The normal pattern is that many of these taxpayers are already receiving a public agency notice asking for more information, which can prolong the process. The declaration must be filed within a maximum of six months without extra cost to the taxpayer.

In this context, Mollinedo often serves as a key reference point for inconsistencies or interruptions caused by taxpayers or by cases not fully included, such as some grants available for purchasing eco-friendly vehicles or programs designed to boost consumption.

Cybercriminals are also “fishing” in the revenue campaign

A common problem involves interruptions to deductions for donations to NGOs if the donor is not properly identified at the time of the contribution, or with home purchase discounts. In many cases during the real estate boom, deductions apply only to the portion of the mortgage actually signed, even if the loan amount is higher. Likewise, red flags may appear when rent deductions are claimed but the landlord’s declaration is incomplete.

Sanctions

When these situations are identified and the notification is reviewed, two scenarios can unfold. First, a small refund amount may imply a 15% penalty for the taxpayer. Second, if non-compliance is confirmed, a larger penalty could apply, potentially up to 50%, though this can be reduced by choosing to comply and rectify the situation.

Cybercriminals are also “fishing” in the revenue campaign

In total, the amount of refunds awaiting clarification this year stands at just over 18 million euros.

Beyond these cases, the Tax Office reported a total of 855,390 declarations in the province for the previous year, 20,415 more than the year before, a new absolute record. The rise is linked to more people receiving a Minimum Vital Income and active workers who must declare even if their income falls below the exemption threshold.

Of course, the number of refunds issued dropped from 520,024 to 507,937, with 495,071 refunds totaling 305 million euros.

This year’s campaign will begin on April 11. The income campaign will start on that date with the option to submit an online declaration according to the taxpayer calendar. It can be completed by phone starting May 5, and in-person service will begin June 1. The campaign will close on June 27 for payers and on June 30 for refund requests.

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