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Taxand Spain explains the judgment on surcharge for failure to pay football club’s tax debt rendered by the Madrid High Court on 24 April 2017.
The high court dismissed an application for judicial review filed by the applicant, a football club, against which an enforced collection interlocutory order was rendered as a result of the failure to pay over tax withholdings from income from movable capital (personal income tax).
The court found that the enforced collection interlocutory order was rendered after deferred payment of the tax debt had been denied.
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It transpires from the administrative proceeding that the claimant did not pay over the tax debt in the voluntary payment period, or before notification of the interlocutory order, and therefore, under article 28 of the General Taxation Law, the ordinary 20% surcharge and late payment interest would be chargeable, because the voluntary period had ended and the enforcement period had commenced before the debt was paid by the applicant.