The substitute or substitute declaration is an official tax document. Said return must be filed when a tax return is erroneous or incomplete. Therefore, it is necessary that it be completely replaced in the same fiscal year and period.
This type of substitute or substitute declarations end up being a practically new presentation of the data and that completely annuls the original. However, it is not the same as the supplementary statement. This type of document is common in tax matters, such as in tax returns such as VAT or personal income tax.
The meaning of the existence of this tax mechanism is that there are times when filing errors are so abundant that a supplementary one is not enough. Therefore, an absolute correction of failures is required in the face of the tax body.
Characteristics of the substitute declaration
As with the complementary ones, it is necessary to indicate the reference number of the original declaration. In this way, the State can know which document it replaces and affects this correction. In the same way, it is important to bear in mind that this type of cancellation is only made when the main person affected by the error of the first declaration is the Tax Agency (either it is necessary to make a larger payment or the resulting refund is greater than due) .
For its presentation there are deadlines previously determined by the public treasury, which depend on the reason for the correction of the declaration. On those occasions when they are presented out of date, the State establishes a surcharge on the final payment or refund.
Thus, it allows the correction of errors or incomplete information, covering a greater amount of data than the complementary one. This occurs, because most tax returns are made through self-assessment. Therefore, it is assumed that they are made by unqualified taxpayers and that they can make mistakes frequently.
Tags: cryptocurrencies Business economic-dictionary