- Sara Soares analyzes the practice of the Portuguese Tax Authority (AT) applying fines for “failure to deliver tax payment” even when companies are still VAT creditors.
- She argues that in these cases, there is no tax missing from the State, so legally no infraction occurs.
- Higher courts have repeatedly confirmed this view, annulling fines up to 45,000 euros and stating that undue deduction is only an infraction if it reduces tax actually owed.
- The discrepancy between AT’s administrative practice and court interpretation creates legal uncertainty for companies.
- Sara Soares emphasizes the importance of knowing and defending taxpayers’ rights.
Source: abreuadvogados.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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