Covid-19. Ombudsman calls for speedy income tax refunds

The Ombudsman issued a new communication on how the Tax Authority (TA) is interpreting and applying the rule contained in Decree-Law 10-F/2020, which suspended tax executions until June 30.

After exchanging correspondence with the Director General of TA, the Ombudsman now addressed the Secretary of State for Fiscal Affairs, drawing attention to the issues addressed in that correspondence that are still unresolved, particularly in relation to the payment, to those executed, of tax refunds that have since been ascertained, which continue to be unduly withheld by TA, jeopardizing the objective announced by the Government in determining the suspension of tax executions following the Covid-19 pandemic.

In the communication addressed to the Secretary of State for Fiscal Affairs, the Ombudsman reveals concern, not only with taxpayers who, because they have tax debts, have had their IRS (income taxes) reimbursements withheld by TA, but also with those who, because they do not have tax debts, have also addressed them, pointing out the slowness of payment of their reimbursements. Citizens and families, deprived of the tax reimbursements to which they are entitled, are not being assured the means of subsistence that the legislator wanted to guarantee them with the above mentioned regulations, so it is urgent to correct the situation.

The fact that the TA can make the income taxes assessments until July 31 and issue the respective reimbursements until August 31 should not prevent the pursuit of the objective of increasing the pace of reimbursements and their effective availability to all their holders, whether or not they have tax debts.

The effort to anticipate the payment of reimbursements to the households entitled to them – especially during the month of June – will translate into a valuable form of support for families, in line with what has been the Government’s concern following this pandemic.

 

To read the full letter click here [In Portuguese only].