NAVARRA: Indirect estimation: when it applies

When the Tax Inspection investigates a company and cannot obtain sufficient data to determine the taxable base of a tax, it can determine it through what is called indirect estimation.

Application assumptions

This option exists in the following cases:

• Failure to submit declarations; or when the submitted ones do not allow the Administration to know the necessary data for the complete estimation of the taxable bases or the income.
• Resistance, excuse, or refusal to the inspection action.
• Substantial non-compliance with accounting obligations.

How does the Tax Agency calculate the taxable base?

In these cases, the Tax Agency performs alternative calculations based, for example, on statistical data from the corresponding activity sector, or extrapolating the commercial margin of that sector over the magnitudes it does have (purchases or sales).

Why is it advisable to avoid its application?

Because some of the assumptions that determine the application of indirect estimation are, moreover, parallel to those that imply an increase in the applicable penalties on the amounts not collected.

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