The Superior Court of Justice of Madrid has confirmed that a taxpayer must pay to the Treasury, 87,679.64 euros, for IRPF and 58,025.87 euros of sanction, since the origin of 145,425 euros has not accredited entered into cash in their accounts and those of close relatives. For the Court, these movements constitute non -justified patrimonial gains and, therefore, must be taxed as hidden income.
According to the February 2024 judgment, after an inspection, the State Tax Administration Agency (AEAT) detected these income and opened a regularization procedure. The administration concluded that the money was justified and practiced the liquidation and the corresponding sanction.
The taxpayer, who alleged that the funds came from his activity as an autonomous carrier and family contributions, but the regional economic-administrative court of Madrid, confirmed both the liquidation and the sanction. He understood that the taxpayer had not contributed sufficient evidence to prove that they were not unjustified patrimonial gains.
Justice considers that money constitutes hidden income and has to pay 145,705.51 euros to the Treasury
The Superior Court of Justice of Madrid ratified this interpretation and recalled that, in accordance with article 105.1 of the General Tax Law, it is up to the taxpayer to prove the origin of the money. In this case, in the absence of reliable evidence, the presumption of article 39.1 LIRPF was applicable, which converts unjustified income into taxable income.
In the words of the sentence: “The existence of non -accredited cash movements allows to presume, except proof to the contrary, the existence of hidden income”.
Regarding the sanction, it was also confirmed, since the conduct fit the serious infraction typified in article 191 of the LGT, consisting of stopping entering the tax debt within the deadline.
For all these reasons, the TSJ confirmed the liquidation and the sanction, and the taxpayer will have to pay to the Treasury 145,705.51 euros for hiding income.