The tax base may also be reduced proportionally where the credits against the tax charged by the taxable transactions are partly or wholly uncollectible .
For this purpose, a loan is considered fully or partially bad if it meets the following conditions:
- That one year has elapsed since the accrual of the tax impact has been obtained without the payment of all or part of the credit derivative thereof.However, in the case of forward or deferred price, must have one year after the expiration of the time or times outstanding in order to proceed to the proportional reduction in the tax base. For this purpose, 'term operations or those in the deferred price has been agreed that his compensation should be paid in tranches or in one only, respectively, provided that the period between The tax impact and the expiration of the last or only payment exceeds one year.When the holder of the credit which aims to reduce tax base is a businessman or professional whose trading volume, calculated in accordance with the provisions of Article 121 of this Act, had not exceeded during the calendar year immediately preceding of 6,010,121.04 euros, within one year referred to in this condition 1 is six months.
- That this has been reflected in the records books required for this tax.
- That acts as the customer in the condition employer or professional or otherwise, that the tax base of the former, the value added tax excluded, more than 300 euros.
- That the subject person has called his recovery by the debtor or legal claim by the same notary requirement, even when the appropriations are secured by public bodies.
In the case of receivables owed by public bodies, the judicial complaint or request of attorney referred to Condition 4 th above, is replaced by a certificate issued by the competent organ of the Entity debtor groups according to the report of the Comptroller or Treasurer stating that the recognition of the obligation of the same and the amount.
The amendment must be made within three months following the end of the period of one year referred to in condition 1. Previous meetings and communicated to the State Tax Administration Agency in the period specified by regulation.
When the holder of the credit which aims to reduce tax base is a businessman or professional whose trading volume, calculated in accordance with the provisions of Article 121 of this Act, had not exceeded during immediately preceding calendar year of 6,010,121.04 euros, the period of one year referred to above shall be six months.
A after the reduction of the tax base, it will not modify the rise but the taxpayer obtained the total or partial payment of the consideration, unless the recipient does not act as a trader or professional. In this case, means that the Value Added Tax is included in the amounts received and in the same proportion that the portion of consideration received.
Notwithstanding the above, when the taxpayer withdraws the legal claim the debtor or reach a payment agreement with the same request after the attorney made as a result of this or any other cause, shall alter the tax base back up through the issue, within one month from the withdrawal or the billing agreement, respectively, of an amendment bill in which an impact fee is appropriate.
In connection with the alleged modification of the tax base included in the preceding paragraphs, the following rules apply:
- shall not changing the tax base in the following cases :
- Credits real security, the secured party. Credits
- secured by credit institutions and mutual guarantee companies covered by credit insurance contract or bond, the anchored or secured. Credits
- between persons or entities defined in Article 79, paragraph five of this Act .
- owed or credits secured by public bodies.
Nothing in this letter d shall not apply to the reduction of the tax base made in accordance with paragraph four of Article 80 of this Act for loans deemed uncollectible in whole or in part, without the need to comply with the requirement of documentary evidence of default referred to Condition 4 of that provision.
- Nor shall the modification of the tax base when the recipient is not established operations in the territory of application of tax, or in the Canary Islands, Ceuta and Melilla.
- In the case of partial payment prior to that amendment, it means that the Value Added Tax is included in the amounts received and at the same rate that the portion of consideration paid.
- Rectification of the deductions from the recipient of operations to be performed in accordance with the Article 114, paragraph two, number 2, second paragraph of this Act , determine the source of the credits for the Treasury.
If the recipient of the transactions subject had not been entitled to full deduction of tax, it will also owed to the Treasury for the amount of the tax is not deductible.
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