When someone passes away, the heirs are faced with a series of procedures and formalities that must be carried to process the inheritance. Among them, one of the most important aspects is the Inheritance and Gift Tax (IHT). Dealing with this tax is vital in order to proceed with the distribution of the assets. This tax can cause concern due to the deadlines set for its payment. In today’s article, we analyse the deadline to file it and the possibility of requesting a suspension of this deadline, under certain conditions.
Inheritance tax. General deadline and extension.
As we have explained in the past, the IHT is a state tax whose management is transferred to the different autonomous regions. According to the current regulations, the tax must be paid within 6 months. However, it is possible to request an extension within the first 5 months after the date of death. The extension extends the deadline another 6 months. That is, in total, 1 year from the date of death.
Extension and interest for late payment. Surcharges.
When the heirs do not pay the Inheritance Tax within the first 6 months of the death, they will face interest for late payment. These will be accrued on the tax due from the seventh month onwards. Even if an extension has been requested and granted, interest for late payment will always be due from the seventh month onwards.
Furthermore, when the tax is submitted after the deadline (after the seventh month if no extension has been requested, or after the thirteenth month if an extension has been granted), surcharges will be payable.
Suspension of the deadline of the Tax. When can it be requested?.
Article 69 of the Inheritance and Gift Tax Regulations establishes the cases in which it is possible to request the suspension of the filing deadline. When litigation or voluntary testamentary proceedings are initiated between the heirs, it is possible to apply for a suspension. This should also include cases in which, for example, criminal proceedings concerning the falsity of the will, etc., are being conducted.
From when does the suspension of the deadline for filing the tax start to run?.
In order to determine the point in time when the time limit is suspended, it is necessary to examine the date when the claim was presented in court. The time limit will start to run again from the day following the day on which the final decision terminating the legal proceedings becomes final.
What happens when, after the expiry of the deadline/extension, a court proceeding starts?. In such cases, the tax administration may require the submission of the tax but will suspend the liquidation until the final ruling is issued.
Conclusions.
Contentious inheritances, in which the heirs do not agree, and the matter ends up in court, can affect the deadlines established for filing the Inheritance and Gift Tax. At White-Baos Lawyers we are experts in Inheritance Law and Inheritance Tax. If you wish to apply for the suspension, request and extension, etc. of the IHT, do not hesitate to contact us. We will study your case and offer you expert legal advice on the subject.
The information provided in this article is not intended to be legal advice, but merely conveys information relating to legal issues.
Carlos Baos (Lawyer)
White & Baos.
Tel: +34 966 426 185
E-mail: info@white-baos.com
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