In a recent decision, the Central Economic-Administrative Court (TEAC) declared a notification served by public notice by the Spanish Tax Agency (AEAT) invalid, on the grounds that the Agency had disregarded both the address and the representative expressly designated by the taxpayer in proceedings initiated at the taxpayer’s request.
Every taxpayer is entitled to appoint a voluntary representative or designate an address for notification purposes, and the Tax Administration is bound by such designation when serving notices.
The Court held that notification by appearance is a exceptional mechanism that may only be used by the Administration after the ordinary methods of notification have been exhausted, particularly where the taxpayer has designated an address for notifications within proceedings initiated at the taxpayer’s request.
As a result, the TEAC annulled the dismissal for lateness previously issued by the Regional Economic-Administrative Court (TEAR), requiring the AEAT to roll back the administrative actions carried out. The TEAC considered that the time limit for filing an appeal must be calculated from the moment the interested party has actual knowledge of the administrative act.
In its decision, the TEAC stated that the designation by the taxpayer of both a representative and an address for notifications is not a mere formality, but rather a right of the interested party that is binding upon the Administration. Consequently, if the Administration disregards such designation and proceeds directly to notification by public notice in the Official State Gazette (BOE), such publication cannot be deemed the dies a quo for the calculation of the time limit for lodging an appeal.
The Court requires an effective notification as a prerequisite for the exercise of the taxpayer’s right of defence, which directly affects the validity and effectiveness of notifications in relation to appeal deadlines.
In conclusion, the purpose of any notification is to ensure that the act genuinely comes to the attention of the interested party so that they may react accordingly. The TEAC reiterates that notification by public notice or by appearance is a mechanism only to be used exceptionally, and may only be used once the ordinary channels of notification have been reasonably exhausted.
At PLANA VENTURA GARCÉS, we are available to provide advice and assistance in relation to all types of tax proceedings and to answer any questions you may have regarding this matter or any other tax-related issue.
