4.2.3. Personal Income Tax Campaign

The Tax Agency intensified its efforts to help more than 20 million citizens required to file a Personal Income Tax return corresponding to the year 2014 to fulfill their obligations. To do this, in the Income Tax Campaign carried out in 2015, the Agency increased its human and technical resources to meet the demands of assistance and information and to provide the services described below.

Submission of the pre-populated income tax return or of tax information relevant for the declaration of the Personal Income Tax

The main service that the Tax Agency provides during the tax return campaign is the possibility to submit a pre-populated income tax return, or the most significant tax information to prepare the tax return when the Tax Agency does not have all the necessary information. The overall number of pre-populated tax returns and tax information calculated by the Tax Agency reached 23,589,093, which is 0.28% more than the previous year.

The most relevant figures are shown in the following tables of the Annex:

RENØ service for obtaining the pre-populated tax return and tax information on line

As in previous years, the Agency offers the RENØ service for obtaining a draft tax return and tax information online. This year, 15,459,064 taxpayers have used it, representing an increase of 2% over the previous year.

To use it, the taxpayer must introduce into the E-Office their ID number and first surname, the amount stated in 415 of the previous year's tax return or, if applicable, mark the box indicating that it was not filed, and then a mobile phone number and the code of a current account if the return was not filed. In this way, the system automatically sends a text message (SMS) to the mobile phone with the reference number of the draft and the tax data. This reference number enables the taxpayer to consult, modify and confirm the draft. Similarly, and if applicable, it permits the transfer of the tax data to the PADRE Program to complete the return.

Confirmation or modification of the pre-populated income tax return

The pre-populated tax return can be confirmed or modified by the taxpayer using several means: telephone, Internet, text messages, ATMs, banking or telephone electronic (in the institutions which provide this service) and, in person, in Commercial or Savings Banks or Credit Cooperatives, in the offices of the Tax Agency and in specific offices authorised by the Autonomous Communities, Autonomous Cities and Local Bodies.

Aid services for completing tax returns

Any taxpayers who, due to the type of incomes obtained, do not have the draft of the return, can complete their return with the PADRE program, available in Internet, and file it via Internet or in person, in the offices of the Tax Agency or the other collaborating bodies, or use the assistance service for the completion of returns in the offices of the Agency or any collaborating organisation, such as those of Autonomous Communities, City Councils, Provincial Councils, etc., requesting a prior appointment by Internet or telephone.

During 2015, a total of 19,417,254 Personal Income Tax (IRPF) tax returns for 2014 tax year were filed, including both confirmed or modified drafts and self-assessments. With regard to self-assessments, all of them were completed using the help programs, since for the 2013 and subsequent tax years it is not permitted to file Income Tax returns manually in a pre-printed form.

14,684,389 tax returns were filed online – which includes both those completed with the PADRE program and the drafts confirmed or modified online, as well as those of other help programs (only permitted to be filed online).

The following table of the Appendix shows the data relating to Personal Income Tax returns and draft returns for 2014:

Also, in 2015 the Renta web service began as a pilot project, which will gradually replace the PADRE program.

Consultation of the status of the refund procedure. VERIFICA

The Administration has a six months deadline starting from the end of the tax returns' submission deadline, or from the tax returns' submission date if it was submitted outside of the deadline, to carry out the provisional settlement that confirms or modifies the amount of the refund requested by the taxpayer.

The issuing of refunds starts off 48 hours after the beginning of the tax return campaign. The consultation of the status of the return's procedure is available in the Tax Agency's website and in the automatic telephone helpline.

In 2015, the average time taken to process refunds in the Income Tax Campaign (for the 2014 tax year) was 10 days.

In the second half of July 2014, the Tax Agency launched the first phase of implementation of a new procedure online for quick verification of personal income tax returns with results to be returned, called VERIFICA , and which continued in operation in 2015. Through this system, taxpayers are informed via the Tax Agency's E-Office of any incidents which result in a reduction of the refund initially requested, so that they can accept the Tax Agency's settlement proposal and thus expedite the refund process. If the taxpayer does not accept the proposal or submits an appeal, the procedure will follow its ordinary course.