Advances in technology and smarter administration have sped up rent refunds for most taxpayers, with many receiving their reimbursements within a few days. Yet every year a portion of taxpayers in Alicante, and by extension in other regions, begin the new year without seeing a single euro. The typical reason is that the tax office requests additional information or documents listed in the taxpayer’s declaration, or the data provided does not match what is on file.
In this pattern, some taxpayers remain in limbo until late in the year. Across the province, 12,866 taxpayers faced this delay, representing 2.5% of all refund requests during the 2022 campaign, according to the latest balance from the Tax Office. That figure was slightly lower than the previous year, when 13,122 taxpayers experienced a similar hold-up.
Occasional delays in processing do occur. In truth, this has not been a widespread issue for some time. The Tax Office is not fond of paying interest, notes the general secretary of the Gestha Treasury technicians association, Jose Maria Mollinedo. He adds that if the delay stems from the administration, the taxpayer may be owed interest of up to 4.0625% per year.
Typically, these taxpayers receive a public agency communication requesting more information, which can shorten the process. The Treasury has up to six months to file a declaration without any extra cost.
In this context, Mollinedo is often cited for noting inconsistencies in the interruptions or omissions that impact certain deductions, such as eco-friendly vehicle incentives or measures to stimulate consumption.
Cybercriminals also strike during the revenue campaign
A very common issue involves interruptions. Charitable donations are not deductible if they are not properly identified at the time of donation, or with home purchase discounts. In many cases during real estate booms, the loan is counted only for the mortgage portion tied to the title, even if the loan covers a larger amount. Likewise, a red flag often appears when a tenant tries to deduct rent that the owner did not declare.
Sanctions
When one of these situations occurs and the notification is reviewed, two possibilities exist. First, if the refund amount is small, Mollinedo recalls, a 15% penalty for the taxpayer could apply. Second, a higher penalty of 50% could be imposed, though it can be reduced by agreeing to comply.
In total, the sum of returns awaiting clarification this year amounts to just over 18 million euros.
Ahead of these cases, last year’s balance showed a total of 855,390 declarations in the province, a figure that exceeded the previous year by 20,415 and set a new absolute record. The rise was driven by more recipients of the Minimum Vital Income and active workers who must declare even if they do not reach the exemption threshold.
Of course, the number of refunds pending stood at 520,024, then 507,937, with 495,071 refunds already processed, totaling 305 million euros.
The campaign for this year will begin on April 11.
The income campaign will start on April 11 this year, offering online filing according to the taxpayer calendar set by the Tax Office. It can be done by phone starting May 5, and in-person service is scheduled for June 1. The campaign will run until June 27 for payers and until June 30 for refund requests.