How to recover overpaid taxes
Companies can, in certain situations, recover taxes paid in excess or unduly. Knowing the paths and the limits helps assess this opportunity with confidence.
What recovering taxes means
Tax recovery is the possibility of recouping amounts that were paid in excess or unduly to the tax authorities. This can occur for different reasons, such as calculation errors, interpretations of the legislation, or changes in the understanding of a given charge. In general, it is a matter that requires careful analysis of the company's tax situation.
Situations that usually generate recoverable amounts
Although it depends on each case, certain scenarios are usually associated with the possibility of recovering taxes.
- Payments made on an incorrect calculation base
- Duplicate payments or payments above what was due
- Charges subsequently considered undue
- Credits not used within the applicable rules
Paths to recovery
In general, recovery can follow the administrative route, through requests to the tax authorities themselves, or the judicial route, when it is necessary to dispute the right to the credit. The choice of path depends on the tax, the amount involved, and the basis for the recovery. In many cases, it is necessary to document the payments and the origin of the amounts.
Precautions before seeking recovery
Before starting, it is usually advisable to review the tax situation, check the deadlines set out in the legislation, and gather supporting documentation. Seeking recovery without an adequate basis can create risks, such as future challenges. For this reason, a technical and individualized analysis tends to be important in assessing feasibility.
Frequently asked questions
Is there a deadline to recover overpaid taxes?
Yes. The legislation usually sets deadlines to claim the recovery of amounts, and letting them lapse can prevent recovery. Since the deadlines vary according to the case, it is important to check each situation in time.
Does every company have amounts to recover?
Not necessarily. The existence of taxes to recover depends on each company's specific tax situation. A careful review is what usually indicates whether there are overpaid amounts and whether recovery is feasible.
Need guidance on this topic?
This article is informational. For guidance on your specific case, talk to our team.