Thousands of retired from all over Spain, from the professional generation that began to work in the sector before 1979they will be able to claim from the Treasury a part of their pension that should not have been taxed in their personal income tax returns, according to a recent ruling of the supreme court (TS).

The new tax situation benefits a group of ex-professionals from over 70 years of age. The average return it will be about 650 euros per fiscal yearincluding that of 2022which is about to be liquidated, and the previous four, during which the novelty has not prescribed. Those who have litigated before may benefit from the return from the filing of the claim. A tax adaptation that will be maintained for the next exercises.

You have to request a refund

The judgment of the Supreme Court modifies the criteria of the Central Economic-Administrative Court (TEAC), which had been applied to the provision for contributions made at mutuality of the sector from 1967 to 1978. Now, instead of being included as 100% income from work, they must pay only 75%according to sources from the Tax agencywhich will analyze the ruling “to assess the corresponding return formula”, noting that “in any case it must be preceded by a request from the taxpayer himself”.

The regulator’s decision comes after a process of years of resources before the Tax agency, statutory estates, Economic-Administrative Courts and Superior Courts of Justicewhich has now concluded with the aforementioned Supreme Court ruling in favor of this group of bank retirees.

The tax advisor Jesus Calongefounding partner of the company IBA Cabinet based in Bilbao, has been one of the professionals who has intervened in the legal proceedings. He has had the collaboration of Ander Martínez Izaga, from Legalkide Abogados, for the development of the procedural issue before the ordinary courts.

Jesus Calonge has pointed out that “retirees from the banking sector who began their professional career prior to December 31, 1978 now see how a part of their pension is not taxed in their personal income tax returns”.

The tax expert specifies that the greater the professional seniority in relation to that date, there will be more monetary compensation from the Treasury. “The more time elapsed between the worker’s entry into the bank’s workforce before 1979, the greater the part of the pension that he does not pay in personal income tax.”

This tax saving takes effect in the fiscal year of 2022, which will be liquidated shortly, as well as in the coming years and in the previous years that have not expired, at least the last four.

The Basque specialist warns that “it is not foreseeable that the Treasury will include in its drafts the effects of the Supreme Court ruling, so that the draft prepared by the Treasury for the year 2022 and the following ones must be corrected.”

Jesus Calonge reiterates that the return of the IRPF paid in excess in previous years must be requested. “Although our claims have been addressed mainly to the Provincial Treasury of Bizkaia, because we and the majority of our clients are from Biscay, the effects of the sentence are applicable to all taxpayers wherever they reside: to those who pay taxes at the Tax Agency and to those who do it in the foral Haciendas”. A compensation that is therefore extended to all retirees who began working in banking before 1979.

Jesus Calonge, with a professional career spanning almost four decades that began at Coopers & Lybrand and later at PriceWaterhouse (currently PwC), founded Iba Gabinete Asesor SL in Bilbao in 1992. This company will soon join the Trebeki consultancy, of the Ner Group.

Four years of litigation

The process of claiming the Treasury for personal income tax overpaid by retirees in the financial sector began four years ago in Bilbao, at the initiative of the Association of Banking Retirees abancheiswhich entrusted IBA Gabinete Asesor with the beginning of a procedure that has now concluded, in unification of doctrine, with ruling 255/2023 of February 28 of the Supreme Court.

The successive writings and appeals were initially dismissed in their entirety, later estimated on the merits of the matter but limited in the period of effect and finally estimated by the Supreme Court on the merits and within the period.

The judgment of the Supreme Court is a consequence of the appeal filed by the State Attorney’s Office of the Tax Agency against the affirmative judgment, in substance and within the term, of the Superior Court of Justice of Extremadura.

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