Amendments to Royal Decree 249/2023 and the consequences for Commercial Companies
Last April 5, was published in the Official State Gazette, the Royal Decree 249/2023, dated April 4, which amends the main regulations for the development of the Spanish General Tax Law and the regulations of the main taxes, specifically, VAT, Personal Income Tax, Corporate Income Tax and Successions and Donations Tax.
One of the measures introduced is the extension of the cases in which the Tax Authorities may revoke the tax identification number (hereinafter, “NIF”). One of them is the failure to deposit the annual accounts in the Commercial Registry for 4 consecutive financial years.
This Royal Decree amends Article 147 of the General Regulations on tax management and inspection actions and procedures (RD 1065/2007, of July 27), by including in the first paragraph, as a new cause for revocation of the NIF, the noncompliance during four consecutive financial years of the obligation to deposit the annual accounts in the Commercial Registry.
Until now, the only consequences of failure to fulfill the duty to deposit the annual accounts were the closure of the Registration Page of the non-compliant entity (art. 378 RRM), as well as the remote possibility of financial penalties. This meant, therefore, the impossibility of registering in the Commercial Registry any documents or acts carried out by the company, with certain exceptions, such as the dismissal or resignation of administrators, the revocation or resignation of powers of attorney, etc.
Therefore, as from the date of entry into force of Royal Decree 249/2023, the Tax Authorities will have the power to revoke the NIF, when in the course of the verification actions or other tax enforcement actions and procedures, the failure to deposit the annual accounts for four consecutive financial years is accredited.
In practice, the revocation of the NIF entails a series of transcendental consequences for day-to-day business activities. Specifically, having the NIF revoked means that a company will not be able to, comply with most of its tax obligations (which would imply incurring in punishable tax infringements); relate with Public Authorities or with Credit Institutions; grant a public deed before a notary public; nor practice entries in the Mercantile Register.
This measure represents a further step in the control by the Tax Administration of inactive entities or those with little or no activity, which make up a larger group of potential taxpayers than those who actually carry out economic activities.