In 2022, the Tax and Customs Administration imposed 6,598 IRS additional assessments on taxpayers who missed the deadline for reinvesting capital gains from the sale of the home. This generated an increase in gross income of EUR 140.1 million.
This data is contained in the 2022 report on the fight against fraud and tax and customs evasion, which was released publicly this Monday, with the document stating that the observed increase in gross income (140.1 million euros) “significantly higher” than that recorded a year earlier, which corresponded to 93.4 million euros.
These are taxpayers who sold their own permanent home in 2018, after they had indicated in their IRS return that they wanted to reinvest the realized capital gains in order to avoid being taxed in whole or in part.
“Anno 2022, AT [Autoridade Tributária e Aduaneira] Executed 6,598 additional settlements, citing IRS Model 3 returns, for the period of 2018, due to the fact that taxpayers have registered their intent to reinvest and that they obtained the realized value from the sale of non-reinvested real estate in whole or in part , within the legal deadlines”is stated in the report submitted to parliament.
It should be remembered that the law provides for the granting of a tax exemption on capital gains obtained from the sale of the owner-occupied and permanent home, when another home is purchased or built for this purpose.
However, the exemption only applies if the purchase or construction of the new home took place up to 24 months before or up to 36 months after the sale of the previous home.
In 2021, the control of the non-reinvestment of capital gains led to the realization, by AT, of 3,245 additional settlements with the IRS declaration.
The report also reveals that last year the divergence checking system for receiving the annual IRS return (related to 2021 income) detected 158,530 discrepancies.
On the other hand, in 2022, the Tax and Customs Administration performed 6,470 additional settlements with the IRS returns for the years 2018 to 2021, which related to taxpayers “whose right to a tax benefit ceased” due to the fact that they had tax debts.
These extra settlements resulted in an increase in collections of approximately 1.1 million euros, roughly double the year-earlier figure.
Source: DN
