If you submit your income tax return with a payable amount and set up direct debit, but the account has no balance, the bank will reject the charge. The debt remains pending and, if not regularised, the Tax Office will initiate the enforcement period with penalties and interest.
The income tax return campaign is underway from April until June 30. During these months, thousands of taxpayers must submit their self-assessment, which may result in a payment or a refund. When the result is payable, a recurring question arises: what happens if the Tax Office tries to collect and the account has no funds?
The Tax Agency allows payment via direct debit, card, Bizum, or transfer. If you choose direct debit, the bank receives the charge order on the scheduled date. If the balance is insufficient, the entity automatically rejects the debit. The payment is not made and the debt remains pending.
This does not imply an immediate fine, but it takes the debt out of the voluntary payment period. From that moment on, the case may move to the enforcement phase of collection, with the penalties and late interest established by tax regulations.
The Voluntary Period and the Start of Enforcement Proceedings
While the debt is within the voluntary payment period, the taxpayer has time to resolve it. However, once that period has expired without the Tax Office receiving the money, the collection procedure in enforcement begins.
In that phase, the Tax Administration can demand the debt along with the legally established penalties. If the non-payment persists, it can initiate garnishments on bank accounts, tax refunds, salaries, or other assets, following the order provided in the collection regulations.
The penalty for late payment varies depending on the time elapsed. If paid without prior demand, the penalty is 5% if paid before the Tax Office notifies the enforcement order. If there is already a demand, the penalty can reach 20% plus interest.
Payment Installments and Postponement as Alternatives
One solution offered by the Tax Office is the payment in installments without interest. This involves paying 60% of the amount when submitting the return and the remaining 40% approximately in November. If the first installment is not paid, the entire debt moves to enforcement and the benefits of the installment plan are lost.
To avoid reaching that situation, it is recommended to request a postponement. This option allows you to acknowledge the debt and propose a payment schedule adapted to your economic situation. However, the postponement generates interest and must be processed expressly before the Tax Agency, either when submitting the return or afterwards through its electronic headquarters.
If even then the debt cannot be addressed, the Tax Office will attempt to collect through enforcement, even with garnishments, although the process may take longer. However, penalties and interest will continue to increase the amount owed.
Not Submitting the Return is Not an Option
Avoiding payment simply by not submitting the return is a poor decision. Unless exempt, not submitting it or doing so late not only incurs penalties and interest but also sanctions for failing to comply with the procedure within the corresponding period.
Therefore, the most sensible thing is to plan ahead. The Tax Agency offers tools to review the tax situation at the end of the year and determine if the return will result in a payment or a refund. If it is going to result in a payment, starting to save as early as possible allows you to face the debt within the voluntary period and avoid penalties and interest.
In short, if there are no funds in the account when the Tax Office attempts to collect, the best course of action is to act quickly: pay within the voluntary period if possible, or request a postponement before enforcement proceedings begin. Otherwise, the debt will grow and the consequences will be more severe.
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