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An overview by Garrigues, Taxand Spain
The Spanish Supreme Court has recently ruled that, once a tax assessment is overturned, the tax authorities may issue only one new assessment (“second shot”), regardless of the reason the first was set aside.
In its judgment, the Court held that issuing a “third or subsequent” assessment is unlawful, even if previous assessments were invalidated for procedural or substantive reasons. Allowing repeated reassessments, it said, breaches principles of good administration, good faith, and legal certainty, and unfairly burdens taxpayers.
The decision aims to end years of uncertainty by setting clear procedural limits and reinforcing taxpayer protections against indefinite reassessment attempts. José Vicente Iglesias and Jesús Cudero from our Spanish member firm Garrigues have published a more detailed overview of the ruling, which can be read here.
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