Annual balance of the results of tax inspections

• Last year's control results are 500 million euros (3.5%) better than those obtained in the average of the previous three years
• The Central Delegation of Large Taxpayers contributed 42% of the debt settled by the Tax Agency, which reached a total of 5,378 million, with an average of almost 200,000 euros per taxpayer.
• The debt settled to individuals with large assets amounted to 332 million
• Taxpayers affected by the in-person visits of the VAT Plan have increased the amount of their settlements by more than 10% as an immediate induced result
• After the 14 large coordinated operations at the national level carried out since 2013, the more than 600 affected taxpayers have increased the volume of operations declared in VAT by 535 million euros and the income declared in Companies by 400 million
• Outstanding debt fell by almost 3.5 billion in 2017 and has accumulated a decrease of 7.8 billion in three years, reaching levels close to those of 2010

March 19, 2018.- The Tax Agency obtained 14.792 billion euros in 2017 as a revenue collection effect of its work in the prevention and fight against fraud, consolidating at the levels of the previous year (14.883 billion) results that improve by 500 million euros, 3.5%, the average of the three-year period 2014-2016, thus configuring a period of record figures in the control work entrusted to the Agency.

Of this total, 14.221 billion euros correspond to 'indicator 3' of objectives, the direct result obtained by the Tax Agency in the exercise of its functions of prevention and fight against fraud, which improves by 3.9% the average of the three previous years.

This revenue is broken down into direct income from control actions ('indicator 3.1'), which amounts to 9.505 billion euros, and the reduction in refunds requested by taxpayers ('indicator 3.2'), with 4.716 billion euros.

The Tax Agency's revenue from the fight against fraud is completed by 571 million euros from late declarations (outside the voluntary deadline) without prior request by the Agency.

Strengthening inspection activities

Last year, the Tax Agency carried out a total of 117,380 nominal inspection and investigation actions, 8.3% more than the record levels reached the previous year. At the same time, the liquidated debt increased by 1.3% to reach 5.378 billion euros, with an average debt per taxpayer of 199,000 euros. Of the total figure, 42% corresponds to actions carried out by the Central Delegation of Large Taxpayers.

The reduction of negative tax bases, deductions on pending tax payments and offsetting amounts were also promoted, increasing tax payments by 4,027 million euros, 320 million more (+8.7%) than in the previous year. Although these actions do not count towards the Agency's control results as they do not involve income or a reduction in refunds, they are of great importance for broadening future tax bases and increasing revenue.

In the area of control of large assets, where the first inspections linked to the new selection tool created last year have already begun, in 2017 the Tax Agency has settled tax debts amounting to 332 million euros.

First immediate effect of the VAT Plan

In 2017, the Tax Agency gave a new and strong boost to its on-site actions ('peinados') aimed at on-site control in sectors and areas of tax risk, carrying out a total of 32,215 visits, 31% more than the previous year. The reason for such intense growth in these actions aimed at detecting the black economy is the development, since April, of the 2017 VAT Visit Plan, under which 14,698 visits were completed, 45% of all face-to-face actions of the year.

While the inspections open to taxpayers selected by the Agency's Inspection Area based on in-person actions are being carried out, a first induced effect of the campaign is already being perceived in the taxpayers affected by the visits, which have increased by more than 10% the amount of their VAT settlements submitted after the start of the campaign, compared to the same period of the previous year.

Sectoral macro-operations

In addition to these visits, there is another new line of action within the field of face-to-face actions, focused on complementing the large centralized coordinated actions with entries and records that have been developed for the discovery of hidden economic activity and the detection of sales concealment software. Last year, 782 such visits were carried out, which allow the effect of national macro-actions to be extended to specific sectors of activity.

These large operations, a total of 14 since 2013, have led to a strong increase in the amounts paid these years in VAT and Companies by the more than 600 affected, companies, fundamentally, and also partners, administrators and people from its environment. The parallel effect of increased activity can be seen both in VAT, with a growth in the declared volume of operations of 535 million euros, and in Companies, where their declared operating income has grown by 400 million euros.

Computer inspections and audits

The role played by the Computer Audit Units (UAI) in these macro-operations, as well as in many others spread throughout the national territory, can be seen in the results of subsequent inspections. In 2017 alone, 4,004 inspection reports were issued, 35% more than the previous year, to taxpayers who in recent years have been subject to interventions with UAI, for an amount of 373 million euros, 36% more than what was regularized the previous year.

Over the past five years, these interventions with computer dumps that facilitate the discovery of hidden income, allow for improved evidence collection and reduce the duration of inspections, have led to the regularisation of 1,288 million euros through more than 15,200 inspection reports.

Outstanding debt already falls to 2010 levels

In the area of Collection, the sharp reduction in outstanding debt stands out again, falling by almost 3.5 billion euros, 7.6%, to 42.365 billion. In this way, the outstanding debt has already been reduced by more than 7.8 billion euros in three years, practically reaching the levels of 2010.

The main causes of this reduction include the increase in the transfer of liability to third parties other than the principal debtor, precautionary measures and asset investigations, the debt control campaign during the seizure phase and the various improvements applied to debt collection, both in terms of deferrals and suspended and bankruptcy debt.

Continuing to promote the most qualified actions of the Collection Area to achieve the effective collection of tax debts, in order to detect possible fictitious insolvencies, almost 36,700 investigations of financial transactions were carried out in 2017, 40% more than the previous year and 8.5 times more than the actions carried out in 2012. Similarly, more than 4,100 precautionary measures have been adopted to prevent the depletion of assets, 39% more than in 2012, and more than 16,000 transfers of liability have been agreed upon, more than double the number made in 2012.