A shift in tax practice: Hacienda can no longer automatically fine taxpayers for unsubstantiated corporate tax deductions. The tax authority is now required to prove fault — either intent or negligence.
The mere absence of documentation is no longer sufficient grounds for sanctions without a well-founded and individualized justification. The ruling strengthens protections for small and medium-sized enterprises, which are often subject to mass audits.
For lawyers and tax advisors (asesores fiscales), this represents a new legal tool: if a client acted in good faith and based on a reasonable interpretation of the law, penalties can now be challenged.
⚖️ This ruling now holds the status of a legal precedent
The mere absence of documentation is no longer sufficient grounds for sanctions without a well-founded and individualized justification. The ruling strengthens protections for small and medium-sized enterprises, which are often subject to mass audits.
For lawyers and tax advisors (asesores fiscales), this represents a new legal tool: if a client acted in good faith and based on a reasonable interpretation of the law, penalties can now be challenged.
⚖️ This ruling now holds the status of a legal precedent