Inspection reports

If you or your company are subject to a tax inspection, it is normal for it to end with the signing of a report in conformity – because you agree with the proposed regularization – or in non-conformity. Remember some of the differences between one and the other:

• If you sign in conformity, the possible penalty can be reduced by 58% (an initial 30% automatically, plus 40% on the remaining 70% if the penalty is not appealed and paid on time). However, if you sign in non-conformity, you will lose the initial 30% reduction on the penalty, and the 40% reduction will only apply if neither the settlement nor the penalty is appealed.

• In conformity reports the accepted facts in them are presumed to be true. Therefore, if you change your mind and decide to appeal the settlement, you cannot dispute the facts to which you have agreed; you can only argue legal discrepancies. However, if you sign in non-conformity, in your appeals you can discuss both the facts recorded in the report and the legal grounds put forward by the Tax Office.

There is also the possibility of partial conformity when you only agree with part of the regularization:

• If the part to which conformity is given results in an amount to be paid, two reports are formalized: one of conformity (which includes the elements to which conformity is given) and one of non-conformity.

• If from the part of the regularization to which the taxpayer agrees results in an amount to be refunded, a single non-conformity report is formalized distinguishing the part to which conformity is given.