Without extension the issuing of tax acts in the Covid era

First of all, the judges of legitimacy recalled that Article 157, paragraph 1 of Decree-Law No. 34/2020 provides that the assessment, dispute, imposition of penalties, recovery of tax credits, adjustment and settlement acts, for which the time limits, "calculated without taking into account the suspension period referred to in Article 67, paragraph 1 of Decree-Law No. 18/2020," expire between 8 March 2020 and 31 December 2020, are issued by 31 December 2020 and are served in the period between 1 March 2021 and 28 February 2022. 1 Decree 18/2020", expire between 8 March 2020 and 31 December 2020, are issued by 31 December 2020 and are served in the period between 1 March 2021 and 28 February 2022, except in cases of non-deferrability and urgency.

According to the Supreme Court, this is a provision that derogates from the prohibition to extend the limitation and prescription periods in order to facilitate the taxpayer who would have been notified of a measure at a time of objective difficulty caused by the pandemic.

However, the legislature expressly provided for a final deadline for the issuance of the measure, i.e. 31 December 2020, considering the original expiry date, i.e. before the Covid measures.

In the present case, therefore, since it was the 2015 tax year, according to the applicable legal reference, the ordinary forfeiture period would run from 31 December of the fourth year following the year in which the return was filed.

Thus, for 2015, the ordinary expiration date would have been 31 December 2020.

This 'ordinary' deadline was exactly in line with the Covid provision, according to which, as mentioned, deadlines expiring between 8 March and 31 December 2020 had to follow special rules (split between the date of issuance, the forfeiture of which remained fixed and was not extended, and the date of notification, which was postponed).

Moreover, the rule in question has expressly excluded the further time suspension of 85 days (Article 67 Decree-Law 18/2020) of all obligations and deadlines in the identification of the time limit.

In conclusion, tax acts ordinarily due on 31/12/2020 had to be issued by that date, but could be served later (i.e. from 1 March 2021 to 28 February 2022).

With respect to these specific provisions justified by the particular period, the courts of legitimacy specified that the 85-day suspension provided for by other provisions does not interfere

The ruling is interesting as several offices have issued tax measures with forfeiture on 31/12/2020, at later dates arguing that the 85-day suspension period also applied in this case.

It is to be hoped that the litigation undertaken on this issue will be abandoned by the offices or, failing that, that the courts will take it into account when awarding costs.