Once the liquidation phase has begun administrative enforcement actions cannot be taken to collect pre-insolvency claims
Under article 55 of the Spanish Insolvency Law, it is not allowed after the insolvency order to take individual enforcement action or initiate tax or administrative enforced collection proceedings against the debtor’s property; although until approval of the liquidation plan, administrative enforcement proceedings in which an attachment order has been issued are allowed to continue, together with enforcement actions for employee claims in which the insolvent company's assets have been attached, although certain restrictions apply. This means therefore that from when the liquidation phase commences enforcement proceedings can no longer be initiated to collect claims against the insolvent debtor, even if they are pre-insolvency claims.
In a judgment dated March 27, 2019, the Supreme Court established that the justification for restrictions on the movement of capital may only be held valid if set out in the law.
Tax Newsletter - March 2019
Tax Newsletter - March 2019 | Decisions
Tax Newsletter - March 2019 | Miscellaneous
Supplementary returns filed to implement tax auditors’ interpretation cannot result in surcharges
National Appellate Court concludes in two judgments that surcharges cannot be assessed where the supplementary returns are filed to implement a tax audit interpretation in later years falling outside the scope of that audit.
