After an initially rejected request, an entity succeeds in having its rectification request reconsidered following a ruling by the Constitutional Court declaring the regulatory reform unconstitutional. This case highlights the importance of being aware of legal changes and how they can affect tax obligations.

The decision of the Central Economic-Administrative Court (RES. TEAC 6490/2023 of 22/02/2024) establishes that if a request for rectification of corporate income tax (IS) self-assessments is based on the possible unconstitutionality of a regulatory reform and is rejected prior to a ruling of the Constitutional Court confirming such unconstitutionality, the rejection is correct.

However, if after the rejection to ruling of the Constitutional Court declaring the reform null and void is published, the rectification request must be reconsidered. In the case in question, an entity requested the rectification of IS self-assessments for 2017, 2018 and 2019, based on the unconstitutionality of the reform introduced in 2016. The tax administration rejected the request, but before the TEAC ruled, a ruling was issued by the Constitutional Court declaring the unconstitutionality of the reform. The TEAC, considering that the regulations based on which the self-assessments were prepared were no longer in force, annulled the resolution rejecting the rectification request. It was argued that this decision had a material defect, not a formal one, and a new decision was issued considering the regulations prior to the 2016 reform. This case did not involve a reversal of the proceedings, as no formal defect was found that affected the entity's possibilities of defence.

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