8.9.2. Increase in the net tax liability due to loss of entitlement to certain deductions from previous years

When, in tax periods subsequent to the application, the right, in whole or in part, to the deductions made, is lost taxpayer will be obliged to add to the state tax liability and to the net or complementary regional tax payable in the financial year in which the requirements, amounts unduly deducted, plus applicable late payment interest.

The following possibilities must be distinguished in the reimbursement of deductions:

• General deductions from the payment corresponding to the 1996 and previous years.

  In these years the current autonomous financing system, established by Law 14/1996, was not in force, and therefore the amount of undue deductions, together with late payment interest, will be added in full to the national net payment.

• General deductions from the monthly payment for the years 1997 to 2017.

  The following must be distinguished:

  1. General deductions from the monthly payment for the years 1997 to 2001.

     85% Of the deductions unduly applied, together with late payment interest, and the remaining 15% of the regional tax liability, plus the corresponding interest, since these were the percentage of participation in those years.

  2. General deductions from the monthly payment for the years 2002 to 2008.

     67% Of the deductions unduly applied, together with late payment interest, and the remaining 33%, plus the corresponding late payment interest, will be added to the state's net tax liability.

  3. General deductions from the tax liability for the years 2009 to 2017.

     50% Of the deductions unduly applied, together with late payment interest, and the remaining 50%, plus the corresponding late payment interest, will be added to the state's net tax liability.

  4. Deductions for investment in primary residence from 2002 to 2012.

     The amount of the State tranche of the undue deduction (plus late payment interest) will be applied to increase the state's net payment and the amount of the autonomous tranche (plus late payment interest) will be applied to increase the autonomous or complementary payment.

• Regional deductions from the monthly payment for the years 1998 to 2017.

  All deductions unduly applied, together with late payment interest, will be added to the regional or complementary regional payment.

  From 1 January 2013, the deduction for the purchase of a home has been eliminated. however, a transitional deduction regime is established for investment in a main residence (DT )

  With regard to taxpayers who have deposited amounts in the home account before 1 January 2013:

  • They will not be able to apply the transitional scheme for the deduction for housing after 1 January 2013.

  • They will not lose the deductions from previous financial years, which, in order to be consolidated, continue to be linked to the fulfilment of all property-purchase savings account requirements that were in force when the deductions were made.

  Special seat: Amounts received for the return of the clauses on the limitation of interest rates on loans (minimum interest clause) that would have been included in the financial years previous of the deduction base for investment in primary residence or deductions established by the Autonomous Community (Additional provision of the Personal Income Tax Act)

The refund, in cash or through other compensation measures, of the amounts previously will not be included in the taxable income base of the Personal Income Tax. paid to financial institutions as interest for the application of clauses on the limitation of interest rates on loans (the so-called clause land), together with their corresponding interest in the event of insolvency, derived from agreements concluded with financial institutions and the fulfilment of judgments or arbitral awards.

However, when these amounts previously paid by the taxpayer who is the subject of the refund have been part of the base in previous years the following cases must be differentiated from the deduction for investment in a primary residence or deductions established by the Autonomous Community for the purposes of tax treatment:

1. If the refund of these amounts occurs in cash:

   • The taxpayer will lose the right to deductions made in relation to the tax, and must add to the national and regional tax, accrued in the financial year in which the agreement with the financial institution has been concluded or in which it is subject to the refund in execution or enforcement of a court ruling or arbitration decision, expressly excluding amounts unduly deducted in previous years in the terms set out in article 59 of the Personal Income Tax Regulation, without including late payment interest.

This adjustment will only be made for the years that the right of the Administration has not been prescribed to determine the tax debt through the appropriate settlement.

Completion

• Amount OF DEDUCTIONS INDEBT

  The amount of the deductions made in previous years will be entered when the right to deduction has been lost in 2016 as a result of non-compliance with any of the requirements established for its application.

  For general deductions from 1997 to 2017, the part corresponding to the state tranche and the autonomous tranche of the deduction must be distinguished according to the rules mentioned in the previous section.

• Late PAYMENT INTEREST

  When completing the dates, the years and the amounts, the program calculates the late payment interest by applying the rate to the amount of the undue deduction interest on late payment in force in each of the years between the maturity date of the period for the year in which the undue deduction (or, where applicable, from the day following the date on which the refund was obtained) and the date on which the 2018 tax return is filed. The late payment interest for 2019 is 3.75

• The amount of late payment interest corresponding to the deductions unduly applied, which have been included in the previous section, shall be recorded, distinguishing those corresponding to the state tranche and the autonomous tranche of the deduction.

  The program also includes an option to calculate interest through a data capture window, which includes the following information:

  • "Final date" (Date for calculation purposes ": The date on which the 2018 tax return will be filed will be indicated.

  • "Financial year": The financial year corresponding to the tax return in which the deduction was made, the requirements of which were breached in 2018.

  • "Amount": The amount of the deduction unduly applied will be indicated.

  • "A Enter/A Return": Indicate the result of the tax return in which the deduction was made ("I" or "D").

  • "Start date":

    1. Tax returns to be paid: If the tax return was to be paid, the program itself reflects the start date for calculating the interest, which will be that of the maturity of the period of declaration of the financial year in question.

    2. Returns to be returned: If the tax return in which the deduction was made was to be returned, the date on which the refund was obtained must be indicated in this section.

    In the particular case that the amount of the refund received is lower than the amount of the deduction that is refunded, the latter must be broken down into two parts:

    1. On the one hand, up to the amount of the refund, indicating as the start date on which the refund has been obtained.

    2. And on the other hand, the excess of the undue deduction on the amount of the refund, indicating as the start date the maturity of the period of declaration of the financial year in question:

       STATEMENT	EXPIRY
       1997 Financial year	22-06-98
       1998 Financial year	21-06-99
       Fiscal year 1999	20-06-00
       Fiscal year 2000	20-06-01
       Fiscal year 2001	01-07-02
       Fiscal year 2002	30-06-03
       Fiscal year 2003	01-07-04
       Fiscal year 2004	30-06-05
       Fiscal year 2005	30-06-06
       Fiscal year 2006	02-07-07
       Fiscal year 2007	30-06-08
       Fiscal year 2008	30-06-09
       Fiscal year 2009	30-06-10
       Fiscal year 2010	30-06-11
       Fiscal year 2011	02-07-12
       Fiscal year 2012	01-07-13
       Fiscal year 2013	30-06-14
       Fiscal year 2014	30-06-15
       2015 financial year	30-06-16
       Fiscal year 2016	30-06-17
       Financial year 2017	02-07-18

       (NOTE: The program reflects the maturity date of the period of declaration if the "A Deposit/A Return" section states "I").

       IMPORTANT: If the increase in the net tax liability is due to the loss of the right to deductions for investment in primary residence, both in the State and autonomous regions, due to the circumstances provided for in Additional Provision 45 of the Tax Act, you must tick the boxes provided for this purpose with an X. (Loss of deductions for the return of the floor clauses "

       When you check this box, the program will not calculate late payment interest.