Refund Delays and Safeguards in Alicante’s Tax Campaign

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Thanks to advances in technology and better management, most taxpayers now receive their rent refunds within a few days. Yet every year, thousands of people in Alicante start the new year without a single euro because the treasury needs more information or additional documents tied to their statements. This delay happens when the data provided does not align with what the treasury has on file.

By December 30, many were still waiting. In the province, 12,866 taxpayers faced delays representing 2.5% of all refund requests during the 2022 campaign, according to the latest figures from the Tax Office. That figure was slightly lower than the year before, when 13,122 taxpayers found themselves in the same situation.

Delays in processing refunds have sometimes been attributed to administrative issues. The treasury does not want to pay interest, notes the general secretary of the Gestha Treasury Technicians Association, Jose Maria Mollinedo. He reminds taxpayers that if the delay is the result of the administration, interest could be owed at a rate of 4.0625% per year.

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

The typical case is that these taxpayers receive a public agency notice asking for additional information, which can extend the period during which the treasury must file a declaration at no extra cost. The standard maximum time frame is six months for processing a declaration without charge.

In this landscape, Mollinedo often points to inconsistencies and interruptions in claims, such as grants for ecological vehicle purchases or incentives intended to boost consumption, which may be improperly recorded or missing from filings.

Cybercriminals also target the revenue campaign

A frequent issue involves interruptions related to charitable donations. Donations to NGOs are not deductible unless the donor details are correctly identified at the time of giving. Similarly, home purchase deductions in real estate markets can be tricky, as the deduction is typically linked to the portion of the mortgage signed, even if the loan is for a higher amount. The system can trigger an alert when a rent deduction is claimed but the owner has not declared it.

sanctions

When these situations occur and a notification is reviewed, two outcomes are possible. First, the refund amount may be small, which can lead to a 15% penalty for the taxpayer. Second, the taxpayer could face a larger penalty, potentially 50%, unless compliance is achieved and accepted.

In sum, the total amount of pending refunds remains a concern for the campaign. The latest figures show just over 18 million euros in pending returns this year.

Beyond these cases, the Tax Office reported last year a total of 855,390 declarations in the province, a new record and 20,415 more than the previous year. The rise reflects more people eligible for benefits like the Minimum Vital Income and those who must declare even when earnings stay below the exemption threshold.

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

The campaign for this year will begin on April 11. Taxpayers can submit online declarations in line with the official calendar, with telephone assistance available from May 5 and in-person service starting June 1. The campaign will run until June 27 for payers and until June 30 for refund requests.

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